Losses from rate-sensitive mega-cap growth stocks such as Apple Inc, Microsoft Corp and Amazon.com Inc, dragged down the technological and consumer discretionary.
The final estimate of US GDP for the third quarter revealed that gross domestic product grew at an annualized rate of 3.2%, above the previous estimate of 2.9%.
Meanwhile, a Labor Department report showed the number of Americans filing for state unemployment rose to 216,000 last week, well below economists’ estimate of 222,000, indicating that the supply of workers in the labor market remains tight.
“The GDP data exceeded many expectations. There is concern that the economy will not give up so easily and that it is fighting a battle that will likely force the Federal Reserve to maintain a pro-tightening stance and keep interest rates higher for longer,” said Sam Stovall , chief investment strategist at CFRA Research in New York.
The main Wall Street indices had posted their biggest daily rise the day before so far in December, helped by upbeat quarterly results from Nike Inc and FedEx Corp, as well as improving consumer confidence and easing inflation expectations.
The fear of a recession after the prolonged interest rate hikes by the US central bank has weighed on equities this year, and the The benchmark S&P 500 index has fallen 19.7% on the year, its worst result since the 2008 financial crisis.
Last week, at your monetary policy meeting, the Federal Reserve took a hawkish tone by saying it expects interest rates to stay high for longer, which caused a sell-off in the stock markets.
Source: Ambito
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