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U.S. stock indices closed lower on Thursday as investors weighed a mix of macroeconomic data and corporate earnings reports. According to preliminary data from the U.S. Department of Commerce, the U.S. economy grew by 3.4% on an annualized basis in the third quarter of 2026. This figure exceeded the 3.2% growth forecast by analysts surveyed by Trading Economics. The third-quarter expansion marked an acceleration from the 2.2% growth recorded in the second quarter and represented the strongest pace of growth in a year. Additional economic data showed that U.S. personal income rose by 0.2% in September, while consumer spending increased by 0.5%. These figures fell slightly short of the consensus forecasts of 0.3% and 0.6%, respectively. Meanwhile, the core Personal Consumption Expenditures (PCE) price index—which excludes volatile food and energy costs—rose 0.3% month-over-month and 3.1% year-over-year, compared to 0.3% and 3.0% in August. The Federal Reserve closely monitors the core PCE index to assess inflationary pressures. Technology stocks faced significant pressure during the session. Alphabet Inc. shares fell 12.6%, resulting in a market capitalization loss of over $450 billion. Despite a 25% increase in revenue, the company reported a 25% decline in net profit for the third quarter. Investors expressed concern over rising costs associated with artificial intelligence infrastructure, as Alphabet’s free cash flow turned negative at $9.07 billion, and its long-term debt increased nearly 5.8 times year-over-year to $125.1 billion. Other technology firms also saw sharp declines. Fortinet and ServiceNow both experienced drops of over 20% following weak quarterly reports. Marvell Technology shares fell 13.2% amid reports that the company is in advanced negotiations to acquire Lumentum Holdings, a supplier of optical solutions for data centers. Microsoft Corp. shares dipped 0.2%, despite reporting a 32% increase in net profit and a 19% rise in revenue, both of which exceeded market expectations. In the industrial sector, Caterpillar shares declined 9.3%. While the company reported growth in both net profit and revenue for the third quarter, analysts attributed the stock's decline to concerns regarding the stability of sales in its energy equipment segment, which is heavily tied to data center demand. Conversely, some companies saw gains. Eli Lilly shares rose 6.6% after the pharmaceutical giant reported strong third-quarter results and raised its full-year revenue forecast, driven by high sales of its diabetes and obesity treatment, Mounjaro. Mastercard Inc. shares climbed 4.2% following an 18% increase in net profit and a 14% rise in revenue. Ford Motor shares gained 3.2%, and FedEx Corp. shares rose 1.0%, despite reporting a significant decline in net profit. At the close of trading, the Dow Jones Industrial Average fell 0.25% to 52,432.56 points. The S&P 500 index declined 0.31% to 7,720.30 points, and the Nasdaq Composite dropped 1.38% to 26,184.72 points. Article source: News.am | Image credit: News.am
U.S. stock indices closed lower on Thursday as investors weighed a mix of macroeconomic data and corporate earnings reports. According to preliminary data from the U.S. Department of Commerce, the U.S. economy grew by 3.4% on an annualized basis in the third quarter of 2026. This figure exceeded the 3.2% growth forecast by analysts surveyed by Trading Economics. The third-quarter expansion marked an acceleration from the 2.2% growth recorded in the second quarter and represented the strongest pace of growth in a year. Additional economic data showed that U.S. personal income rose by 0.2% in September, while consumer spending increased by 0.5%. These figures fell slightly short of the consensus forecasts of 0.3% and 0.6%, respectively. Meanwhile, the core Personal Consumption Expenditures (PCE) price index—which excludes volatile food and energy costs—rose 0.3% month-over-month and 3.1% year-over-year, compared to 0.3% and 3.0% in August. The Federal Reserve closely monitors the core PCE index to assess inflationary pressures. Technology stocks faced significant pressure during the session. Alphabet Inc. shares fell 12.6%, resulting in a market capitalization loss of over $450 billion. Despite a 25% increase in revenue, the company reported a 25% decline in net profit for the third quarter. Investors expressed concern over rising costs associated with artificial intelligence infrastructure, as Alphabet’s free cash flow turned negative at $9.07 billion, and its long-term debt increased nearly 5.8 times year-over-year to $125.1 billion. Other technology firms also saw sharp declines. Fortinet and ServiceNow both experienced drops of over 20% following weak quarterly reports. Marvell Technology shares fell 13.2% amid reports that the company is in advanced negotiations to acquire Lumentum Holdings, a supplier of optical solutions for data centers. Microsoft Corp. shares dipped 0.2%, despite reporting a 32% increase in net profit and a 19% rise in revenue, both of which exceeded market expectations. In the industrial sector, Caterpillar shares declined 9.3%. While the company reported growth in both net profit and revenue for the third quarter, analysts attributed the stock’s decline to concerns regarding the stability of sales in its energy equipment segment, which is heavily tied to data center demand. Conversely, some companies saw gains. Eli Lilly shares rose 6.6% after the pharmaceutical giant reported strong third-quarter results and raised its full-year revenue forecast, driven by high sales of its diabetes and obesity treatment, Mounjaro. Mastercard Inc. shares climbed 4.2% following an 18% increase in net profit and a 14% rise in revenue. Ford Motor shares gained 3.2%, and FedEx Corp. shares rose 1.0%, despite reporting a significant decline in net profit. At the close of trading, the Dow Jones Industrial Average fell 0.25% to 52,432.56 points. The S&P 500 index declined 0.31% to 7,720.30 points, and the Nasdaq Composite dropped 1.38% to 26,184.72 points.
News Desk is the editorial publishing account for Tringlobe Media News, covering breaking news, public affairs, entertainment, community developments and regional stories across Trinidad and Tobago, the Caribbean and internationally.
