US benchmark equity indexes closed lower Wednesday as traders parsed the latest corporate earnings and economic data, including a report showing slower-than-projected economic growth in Q3. The Nasdaq Composite fell 0.6% to 18,607.9, retreating from Tuesday's record close. The S&P 500 dropped 0.3% to 5,813.7, while the Dow Jones Industrial Average lost 0.2% to 42,141.5.
Technology saw the steepest decline among sectors, while communication services led the gainers. In company news, Super Micro Computer (SMCI) shares plunged nearly 33%, the steepest decline on the S&P 500 and the Nasdaq. The artificial intelligence server maker said Ernst & Young resigned as its auditor, months after the accounting firm highlighted concerns regarding internal controls over financial reporting. Qorvo (QRVO) shares tanked 27%, the second-worst performer on the S&P 500.
Late Tuesday, the company reported that its fiscal Q2 results fell year over year, while it issued a downbeat Q3 outlook. Garmin (GRMN) was the top gainer on the S&P 500, up 23%, after the company delivered a Q3 beat and raised its full-year outlook Wednesday. Alphabet's (GOOGL) class A and C shares rose more than 2.8% each, among the best performers on the Nasdaq.
Late Tuesday, the Google parent logged stronger-than-expected Q3 results, driven by strength in its advertising and cloud operations. The US two-year yield increased 5.1 basis points to 4.17% Wednesday, while the 10-year rate gained one basis point to 4.28%. In economic news, US real gross domestic product grew at an annual rate of 2.8% in the September quarter, an advance estimate by the Bureau of Economic Analysis revealed.
The consensus was for a 2.9% gain in a survey compiled by Bloomberg. "Real GDP growth remains strong, and this summer's fears of an imminent recession now seem grossly exaggerated," Desjardins said in a report, adding that economic growth is likely to slow, especially in Q4. Employment growth in the US private sector rose more than expected in October, while wage growth cooled, Automatic Data Processing (ADP) reported. Pending home sales in the US climbed more than projected last month amid gains across all regions, the National Association of Realtors said. West Texas Intermediate crude oil rose 2.5% to $68.89 a barrel Wednesday. The Organization of the Petroleum Exporting Countries and its allies may delay a planned oil output hike in December by at least one month amid soft demand and increasing supply, Reuters reported. Commercial crude stockpiles in the US dropped by 500,000 barrels to 425.5 million barrels through the week ended Friday, the Energy Information Administration said.
The consensus was for a gain of 1.8 million barrels, according to a Bloomberg-compiled poll. Gold increased 0.7% to $2,799.30 per troy ounce, while silver fell 1.5% to $33.93 per ounce..