On Thursday, U.S. benchmark equity indexes exhibited a mixed performance as investors assessed the latest economic data and corporate earnings. The real gross domestic product (GDP) of the United States experienced an annual growth rate of 3.1% for the third quarter, as confirmed by a final estimate from the Bureau of Economic Analysis.
This figure surpassed a prior estimate of 2.8%, which had been the consensus in a Bloomberg-compiled forecast. Stifel highlighted, "A stronger-than-expected showing in third-quarter GDP reinforces the (Federal Reserve's) characterization of a 'solid' economy and the need for a reduced pace and number of further rate cuts." Additionally, U.S.
existing home sales exceeded expectations last month, marking the largest year-over-year increase since June 2021, according to the National Association of Realtors (NAR) data. NAR Chief Economist Lawrence Yun stated, "Home sales momentum is building. More buyers have entered the market as the economy continues to add jobs, housing inventory grows compared to a year ago, and consumers get used to a new normal of mortgage rates between 6% and 7%." In the commodities market, January West Texas Intermediate crude oil prices fell by $0.73, settling at $69.85 per barrel, while February Brent crude, the global benchmark, dropped by $0.80 to $72.60.
This decline came as the U.S. dollar reached a two-year high following indications from the Federal Reserve on Wednesday that it intends to slow the pace of interest rate cuts in the coming year. In notable corporate movements, Darden Restaurants ($DRI) saw its shares surge nearly 15% after the parent company of Olive Garden and LongHorn Steakhouse raised its full-year revenue outlook while reporting stronger-than-expected fiscal Q2 results.
Conversely, Micron Technology ($MU) experienced a significant decline of 17% as the memory and storage product manufacturer pointed out weakness in its consumer-oriented markets, which is likely to affect its Q2 outlook..