Despite Drop in GDP, Wall Street Posts Gains Wednesday

iStockphoto/Thinkstock(NEW YORK) -- Despite a drop in gross domestic product, Wall Street rallied from a rough beginning to the week to post gains on Wednesday.

The Dow Jones Industrial Average closed at 16,867.51, up 49.38 on Wednesday.

The Nasdaq closed up 29.4 to 4,379.76, while the S&P 500 gained 9.55 to end the day at 1,959.53.

The Wednesday report from the Bureau of Economic Analysis found that the U.S. GDP fell 2.9 percent in the first quarter of 2014. In the second half of last year, the GDP increased by 3.4 percent.

The White House attributed the decline to decreased exports and "a slowdown in inventory investments." They also noted that bad winter weather may have impacted other components of the GDP.

Despite the overall poor GDP figures for the first quarter of the fiscal year, the White House pointed out that "several key indicators were lower in January and/or February before rebounding strongly in March." The late-quarter increase could be a positive sign for the economy.

Copyright 2014 ABC News Radio

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