US Stocks Set for 3rd Straight Day of Decline
US stocks are set for a third consecutive day of decline, with the S&P 500 and Nasdaq 100 down 0.8% and 1%, respectively. The Dow lost over 300 points as investors reassess rate cut expectations following strong economic data. Weekly jobless claims fell to 218K, and GDP growth was revised up to 3.8%, raising concerns about the Fed's easing plans. Tech stocks faced pressure, with Oracle down 5% and Tesla down 4%. CarMax plunged 20% after poor earnings, while Intel rose 7% on investment news with Apple. Investors await the PCE index for further insights.
Wall Street’s main indexes slumped Thursday, extending losses for a third straight session as investors reassessed the outlook for rate cuts amid stronger-than-expected economic data.
The S&P 500, Nasdaq 100 were down 0.8% and 1%, respectively, while the Dow lost over 300 points.
Weekly jobless claims fell to 218K, below forecasts, while second-quarter GDP growth was revised up to 3.8%, reinforcing concerns the economy’s resilience could delay further easing by the Fed.
A split among Fed officials has also added to uncertainty, with some calling for aggressive cuts while others urge caution to prevent inflation risks from reemerging.
Tech stocks were under pressure, with Oracle sliding 5%, Tesla falling 4%, and Micron also retreating.
CarMax plunged 20% after reporting disappointing earnings, while Intel jumped 7% on news it approached Apple about an investment.
Investors now await Friday’s release of the Fed’s preferred inflation gauge, the PCE index, for clues on the Fed’s next move.
