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Stocks were mostly lower on Wednesday after a fresh batch of economic data points.
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US real GDP increased at an annual rate of 2.8% in the third quarter.
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Wall Street is bracing for more tech earnings, with Meta due to report after the closing bell.
US stocks wavered on Wednesday as a combination of data releases left investors with a strong impression of the US economy.
Third-quarter US real GDP increased at an annualized rate of 2.8%. Though slightly below forecasts, the reading still points to a strong economy and isn’t likely to ramp up the urgency on the part of the Federal Reserve to rapidly cut interest rates to prop up growth.
Meanwhile, the personal consumption expenditures index rose 2.2% year over year last month. The Fed’s preferred inflation gauge was slightly higher than expected but still within striking distance of the central bankers’ 2% target.
“Growth up, inflation down is precisely what you want to see. The Fed doesn’t need to be afraid of a stable and growing economy to normalize rates this cycle so long as disinflation persists,” Harris Financial Group managing partner Jamie Cox said.
Rounding out Wednesday’s data were private payrolls for October, which showed hiring rose at the fastest pace in a year, increasing by 233,000, according to ADP.
The data, along with the October nonfarm payroll report due on Friday, will inform the Fed’s next move at its meeting next week. The odds of a quarter-point interest rate cut stand at 98.2%, according to the CME FedWatch Tool.
Meanwhile, investors are monitoring a slew of upcoming earnings from key companies. Alphabet shares surged 5% shortly after the opening bell after exceeding third-quarter earnings expectations.
Shares of Microsoft and Meta are also trading higher as traders anticipate their financial results on Wednesday after the closing bell. Apple and Amazon are on deck to report after the close on Thursday.
Here’s where US indexes stood at the 9:30 a.m. opening bell on Wednesday:
Here’s what else is going on:
In commodities, bonds, and crypto:
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West Texas Intermediate crude oil rose 1.58% to $68.26 a barrel. Brent crude, the international benchmark, climbed 1.56% at $72.23 a barrel.
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Gold inched up 0.60% to $2,798 an ounce.
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The 10-year Treasury yield fell three basis points to 4.238%.
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