The US economy saw strong growth in the third quarter, though the Nasdaq pushed further into correction territory on Thursday.
US stocks declined on Thursday as traders took in hotter-than-expected US economic growth as well as more tech earnings.
Gross domestic product in the third quarter grew at a 4.9% annualized rate, above forecasts and the roughly 2% pace seen in the prior two quarters. Consumer spending jumped 4%, the most since 2021.
« Investors should not be surprised that the consumer was spending in the final months of the summer, » said Jeffrey Roach, chief economist for LPL Financial. « The real question is if the trend can continue in the coming quarters and we think not. »
Meanwhile, the Nasdaq slumped deeper into correction territory as tech giants Alphabet and Meta Platforms have failed to impress Wall Street this reporting season.
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USA — Financial US stocks drop as investors weigh disappointing tech earnings against hot GDP...