US: Stocks fall despite strong GDP report

WALL Street stocks finished decisively lower on Thursday (Oct 26) despite strong US economic data as markets digested mixed earnings and monitored the ongoing crisis in the Middle East.

US gross domestic product growth came in at an annual rate of 4.9 per cent for the July to September period, the quickest pace since late-2021.

But markets shrugged off the blowout report, viewing it as a sign the US economy is bound to slow down.

The sense is “that’s it’s as good as it’s going to get”, said Briefing.com analyst Patrick O’Hare.

“There’s anecdotal evidence that growth will be slowing.”

The Dow Jones Industrial Average finished down 0.8 per cent at 32,784.30.

The broad-based S&P 500 shed 1.2 per cent to 4,137.23, while the tech-rich Nasdaq Composite Index dropped 1.8 per cent to 12,595.61.

A tidal wave of earnings news produced mixed reactions in the market, with toymakers Hasbro and Mattel diving and drugmaker Merck and IBM forging higher.

Facebook parent Meta Platforms fell 3.7 per cent as the company warned of “volatility” in the advertising market, offsetting a more than doubling in quarterly profit.

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The poor market response to results from Meta and other companies that have led the market in 2023 such as Google parent Alphabet and Tesla has contributed to investor unease, said O’Hare.

“There no real leadership” in the market, he said. AFP