U.S. Stocks Close Lower Despite Strong Economic Growth

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).

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