Wall Street stocks experienced a significant drop on Thursday, despite the US economy boasting a robust 4.9% annualized growth in Q3 and a 4% increase in consumer spending - the highest since last year. The Dow Jones Industrial Average and Nasdaq Composite declined over 0.76% and 1% respectively, reflecting investor concerns over an anticipated economic slowdown.
In the midst of these market fluctuations, tech giants Alphabet (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) fell short of impressing investors, despite exceeding revenue and earnings targets. Meta Platforms, in particular, suffered a 3.7% stock drop after warning of "volatility" in the ad market. This news came as a surprise to many investors, given the company's recent surge in quarterly profit.
The market also responded poorly to Alphabet and Tesla (NASDAQ:TSLA), amplifying investor unease. Toymakers Hasbro (NASDAQ:HAS) and Mattel (NASDAQ:MAT) saw their shares fall, while drugmaker Merck and IBM (NYSE:IBM) experienced gains.
Commodity prices followed suit with the stock market trend, with West Texas Intermediate and Brent crude oil both decreasing by 2.3%. Bitcoin also slipped by 1.6%, and the 10-year yield fell by 10.6 basis points.
Despite the strong Q3 GDP growth, Wall Street's reaction underscores the complex interplay between economic indicators and investor sentiment.
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