The U.S. stock market experienced a significant decline on Thursday, primarily driven by a sharp drop in the shares of major technology companies. This downturn occurred despite the release of a favorable report on quarterly economic growth.
- Dow Jones Industrial Average (DJIA): The DJIA lost approximately 251 points or 0.8%, concluding the day near 32,784, according to preliminary FactSet data.
- S&P 500 Index (SPX): The SPX witnessed a 1.2% decrease.
- Nasdaq Composite Index (COMP): The COMP plummeted by 1.8%, further deepening the correction territory it was already in due to its tech-heavy composition.
The ongoing unease surrounding third-quarter earnings and the concern around the so-called “Magnificent Seven” stocks continued to exert pressure on the market.
Several notable technology companies experienced declines on Thursday, including:
- Meta Platforms (META) -3.73%
- Alphabet (GOOG) -2.55%
- Microsoft (MSFT) -3.75%
- Nvidia (NVDA) -3.48%
- Tesla (TSLA) -3.14%
- Apple (AAPL) -2.46%
- Amazon.com (AMZN) -1.50%
Additionally, FactSet reveals that the communication services sector of the S&P 500 fell 2.6%.
Despite the stock market’s performance, the U.S. Gross Domestic Product (GDP) for the third quarter remained strong at 4.9%. This positive outcome can be attributed to consumers maintaining their spending habits, thereby helping to alleviate concerns of a potential U.S. recession.
Furthermore, the yield on the 10-year Treasury note fell back to 4.843% from its previous value of 4.847% (TMUBMUSD10Y).
