US stocks trade mixed as traders assess strongest GDP growth since 2021
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- US stocks traded mixed Thursday, with the Nasdaq trading in correction territory.
- Gross domestic product grew by 4.9% at an annualized rate over the third quarter, the fastest since 2021.
- The tech-heavy Nasdaq was also weighed down by Meta after it reported earnings late Wednesday.
US stocks traded mixed at the open Thursday, as investors digested gross domestic product data that showed the economy grew by 4.9% in the third quarter, the fastest pace since 2021.
The reading beat the expected 4.3% rate and marked an acceleration from growth of about 2% during the first two quarters of the year. While that may suggest more tightening from the Federal Reserve, Treasury yields were little changed.
"This is a strong print but it's now behind us," Adam Hetts, global head of multi-asset at Janus Henderson Investors, said in a Thursday note. "The Q3 party might have a meaningful hangover as many positive drivers won't persist: a weaker consumer, stubborn inflation, a strong dollar, and the lagged impact of rate hikes can all combine for a restrictive backdrop heading into Q4 which would make similar GDP growth truly exceptional."
Meanwhile, the Nasdaq 100 index continued Wednesday's decline amid Meta Platforms' latest earnings. The social-media giant beat forecasts but also warned of a coming slowdown in advertising revenues.
Here's where US indexes stood as the market opened at 9:30 a.m. on Thursday:
- S&P 500: 4,170.64, down 0.39%
- Dow Jones Industrial Average: 33,046.01, up 0.03% (10.08 points)
- Nasdaq Composite: 12,766.11, down 0.43%
Here's what else is going on:
- Meta stock's bad run continues, with its market value wipeout deepening to $60 billion.
- Warren Buffett dumped a bunch of bank stocks before their epic tumble this year.
- Bill Ackman raked in $200 million from his bet against 30-year Treasury bonds, a report said.
- A research group said the US won't be able to grow its way out of a $33 trillion debt mountain.
In commodities, bonds, and crypto:
- Oil prices dropped, with West Texas Intermediate down 2.33% to $83.32 a barrel. Brent crude, the international benchmark, fell 2% to $88.33 a barrel.
- Gold edged lower 0.32% to $1,988.40 per ounce.
- The 10-year yield dipped 1.7 basis points to 4.936%.
- Bitcoin slipped 1.02% to $34,310.