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.
