U.S. stocks opened lower on Thursday with the Nasdaq Composite sliding further into correction territory as another batch of weak megacap technology earnings offset a blockbuster report on summertime economic growth.
What’s driving markets A preliminary reading on third-quarter U.S. GDP came in even hotter than expected on Thursday, with data from the Commerce Department showing the economy grew at a pace of 4.9%, surpassing the 4.7% rate that Wall Street had expected.Callie Cox, a U.S. equity strategist at eToro, said the latest data should help assuage concerns about an imminent recession in the U.S., although an economic downturn remains a possibility.
“Consumer spending had its biggest contribution to economic growth since the end of 2021, and inventories grew as retailers scrambled to meet demand. It’s hard to say we’re in – or even near – a recession with this kind of GDP print.” Facebook parent Meta Platforms Inc. META, -6.17% was the latest “Magnificent Seven” company to release disappointing results, following poorly received reports from Alphabet Inc. GOOG, -3.01% and Tesla Inc. TSLA, -1.64% Alphabet’s Class A shares fell 9.5% on Tuesday, their worst daily drop since March 16, 2020, when the arrival of the COVID-19 pandemic plunged global markets into turmoil.