Morning Business Report: US economy strengthens as tariffs loom, Wall Street closes at records

The U.S. economy grew at a stronger pace in the spring than initially estimated.

(LILAMAX)- The U.S. economy grew at a stronger pace in the spring than initially estimated, with gross domestic product boosted by business investment in structures, equipment, and intellectual property, along with steady consumer spending. Economists also noted that investments in artificial intelligence may be helping offset some of the weakness caused by tariffs.

Retailer Gap warned that tariffs will weigh on profits. Still, Gap, Old Navy, and Banana Republic performed well last quarter, all meeting or beating comparable sales estimates. Its Athleta brand, however, reported a 9 percent decline in sales.

On Wall Street, all three major indexes closed at record highs Thursday. U.S. markets will be closed Monday in observance of Labor Day.

Outside the stock exchange, Reverend Al Sharpton led a march on Wall Street protesting companies pulling back from diversity, equity, and inclusion initiatives. Demonstrators also called attention to deportations and economic inequality.

Meanwhile, Cracker Barrel has removed the Pride section from its website and announced changes to its business resource groups. The company, which sponsored the 2024 Nashville Pride Parade and once promoted rainbow-colored rocking chairs for Pride Month, has maintained its LGBTQ+ Alliance employee group, along with others supporting veterans and diverse communities.