NEW YORK (TheStreet) -- Investors exhaled after U.S. economic growth rebounded in the second quarter, erasing fears that the recovery was losing steam.
The Bureau of Economic Analysis on Wednesday reported that second-quarter gross domestic product popped by 4%, which easily beat a consensus of economists' expectations for 3% growth.
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Despite the jump, analysts were warning investors not to be too exuberant.
" If you had money sitting on the sidelines, I think it's a good time to start looking at if there [are] some areas that you wanted to start investing in," Chris Gaffney, senior market strategist at EverBank Wealth Management, said in an interview. "Don't jump in front of the train, but maybe jump onto it a little bit -- slowly climb back into the equity market."
Boosting the stronger-than-anticipated quarter was a 2.5% increase in consumption, including a 14% surge in durable goods consumption.
Residential investment gained by 7.5%, while business investment increased by 5.5%.
The data follows first-quarter GDP that contracted by 2.1% largely due to a colder-than-usual winter, which kept consumers from going out and spending on retail items and purchasing homes, among other key drivers of the economy.
Early buying entered the stock market on Wednesday following the solid GDP data, but analysts looked past the positives and suggested that this begged the question of how the Federal Reserve will react.