Wall Street rallies, Treasury yields rise as strong earnings trump weak data

Upbeat results from Meta power Nasdaq

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First-quarter GDP lands well below expectations

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Treasury yields rise as debt ceiling debate continues

NEW YORK, April 27 (Reuters) - U.S. stocks bounced higher and Treasury yields resumed their climb on Thursday as market participants digested solid earnings and signs of a dampening economy.

All three major U.S. stock indexes were green, with megacap tech and tech-related companies putting the Nasdaq in the lead.

Upbeat quarterly results from Meta Platforms Inc, following similarly strong earnings from Microsoft Corp and Alphabet Inc added fuel to the rally.

"The S&P has been fluctuating around a range and it’s been at the bottom of that range for a month and a half," said Thomas Martin, Senior Portfolio Manager at GLOBALT in Atlanta. "With a couple of good earnings from megacap companies, that's indicative of continuing growth."

Economic data released before the bell showed the U.S. economy slowed more than expected in the first quarter, even as price growth came in hotter than economists projected. At the same time, initial claims for unemployment benefits fell, suggesting ongoing tightness in the labor market, a major driver of inflation.

"The economic reports continue to show a mixture of decelerating and accelerating trends," Martin added. "It’s tough to know how much good news is good news, and vice versa, when it comes to what the Fed has to do."

The Dow Jones Industrial Average rose 193.84 points, or 0.58%, to 33,495.71, the S&P 500 gained 33.54 points, or 0.83%, to 4,089.53 and the Nasdaq Composite added 155.98 points, or 1.32%, to 12,010.33.

European stocks were driven higher by a raft of upbeat earnings, particularly from Deutsche Bank AG and Barclays Plc.

The pan-European STOXX 600 index rose 0.13% and MSCI's gauge of stocks across the globe gained 0.50%.

Emerging market stocks rose 0.33%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.17% higher, while Japan's Nikkei rose 0.15%.

Treasury yields gained ground across the board as investors weighed the looming debt ceiling showdown in Washington and signs that inflation could remain stubbornly high even as the economy slows.

Benchmark 10-year notes last fell 23/32 in price to yield 3.5166%, from 3.43% late on Wednesday.

The 30-year bond last fell 42/32 in price to yield 3.7624%, from 3.689% late on Wednesday.

The greenback advanced against a basket of world currencies following the weaker-than-expected GDP report, which did little to affect financial markets' bets on another rate hike at the Fed's policy meeting next week.

The dollar index rose 0.22%, with the euro down 0.3% to $1.1007.

The Japanese yen weakened 0.35% versus the greenback at 134.14 per dollar, while Sterling was last trading at $1.2467, flat on the day.

Oil prices rose after Wednesday's sell-off erased the positive impact of OPEC's unexpected cut to its production targets.

U.S. crude rose 0.15% to $74.41 per barrel and Brent was last at $77.87, up 0.19% on the day.

Gold prices edged lower as the dollar strengthened.

Spot gold dropped 0.4% to $1,982.20 an ounce.