U.S. economic growth accelerated in the first quarter, but the burst in growth was driven by a smaller trade deficit and the largest accumulation of unsold merchandise since 2015, temporary factors that are likely to reverse in the coming quarters.

Major central banks are done tightening policy, according to a majority of economists polled by Reuters, with the growth outlook wilting across developed and emerging economies along with scant prospects for a surge in inflation.

The U.S. economy likely maintained a moderate pace of growth in the first quarter, which could further dispel earlier fears of a recession even though activity was driven by temporary factors.

The number of Americans filing applications for unemployment benefits increased by the most in 19 months last week.

Now that more than a third of the S&P 500 companies have reported, earnings growth looks to be flat this quarter, not negative as many Wall Street analysts expected.

Earnings from a diverse group of S&P 500 companies have been better-than-expected with better than normal gains.  The better profits have helped eliminate fears of an earnings recession, and many analysts believe the first quarter is the trough.  The S&P 500 rallied Tuesday, touching its all-time closing high of 2,930 in midday trading.