The S&P 500 and the Nasdaq Composite recorded slight declines on Thursday as traders scrutinized the latest economic indicators and corporate earnings. The S&P 500 and the Nasdaq dipped 0.1% each, closing at 5,867.1 and 19,372.8, respectively. Meanwhile, the Dow Jones Industrial Average remained relatively unchanged at 42,342.2, breaking a 10-day losing streak.
Among the sectors, real estate experienced the largest decrease, while utilities emerged as the leading gainers. In economic news, the US third-quarter real gross domestic product surged at an annual rate of 3.1%, according to a final estimate provided by the Bureau of Economic Analysis, revising up from an earlier estimate of 2.8% growth.
A Bloomberg-compiled poll had anticipated the figure would remain steady. "A stronger-than-expected showing in third-quarter GDP reinforces the Federal Reserve's characterization of a 'solid' economy and the rationale for a reduced pace and number of further interest rate cuts," stated Stifel in a note to clients.
"With a strong consumer and positive business investment, there is ample justification for a policy pause sooner than later as we turn the calendar page into 2025." On Wednesday, the US central bank's Federal Open Market Committee cut interest rates by 25 basis points and indicated fewer cuts ahead than earlier projected. The monetary policy stance has become "significantly less restrictive," Fed Chair Jerome Powell mentioned at a press conference following the FOMC's meeting.
"We can therefore be more cautious as we consider further adjustments to our policy rate." The National Association of Realtors reported that US existing home sales increased more than expected sequentially last month, marking the largest year-over-year increase since June 2021. However, manufacturing declines in both the US Mid-Atlantic and Midwest regions unexpectedly worsened this month, according to separate surveys from the Philadelphia and Kansas City Federal Reserves. The US two-year yield fell by 3.6 basis points to 4.32% on Thursday, while the 10-year rate rose by 6.8 basis points to 4.57%. West Texas Intermediate crude oil prices decreased by 1% to $69.85 a barrel on Thursday. In company news, Lamb Weston ($LW) shares plummeted by 20%, marking the worst performance on the S&P 500.
The frozen potato products supplier reported unsatisfactory fiscal second-quarter results and revised down its full-year guidance, announcing the resignation of its chief executive officer. Micron Technology ($MU) experienced the steepest decline on the Nasdaq and the second-largest on the S&P 500, dropping by 16%.
Late Wednesday, the memory and storage product manufacturer indicated weakness in its consumer-oriented markets that is likely to affect its second-quarter outlook. Darden Restaurants ($DRI) shares soared nearly 15% on Thursday, becoming the top gainer on the S&P 500. The parent company of Olive Garden and LongHorn Steakhouse raised its full-year revenue outlook and reported better-than-expected fiscal second-quarter results. Accenture ($ACN) was the second-best performer on the S&P 500, gaining 7.1%.
The consulting firm increased its full-year revenue growth outlook and reported favorable fiscal first-quarter results. Gold prices declined by 1.6% to $2,610.80 per troy ounce, while silver dropped by 4.1% to $29.49 per ounce..