US stocks drop as investors weigh disappointing tech earnings against hot GDP report

• US stocks closed in the red on Thursday, with the Nasdaq shedding more than 1%. 
• US GDP data for the third quarter showed the economy grew at 4.9%, more than expected.
• Meta stock fell after management warned on ad sales. 

US stocks declined on Thursday as traders took in hotter-than-expected US economic growth as well as more tech earnings.

Gross domestic product in the third quarter grew at a 4.9% annualized rate, above forecasts and the roughly 2% pace seen in the prior two quarters. Consumer spending jumped 4%, the most since 2021. 

"Investors should not be surprised that the consumer was spending in the final months of the summer," said Jeffrey Roach, chief economist for LPL Financial. "The real question is if the trend can continue in the coming quarters and we think not."

Meanwhile, the Nasdaq slumped deeper into correction territory as tech giants Alphabet and Meta Platforms have failed to impress Wall Street this reporting season. Like Alphabet, Meta beat on revenue and earnings, but management at the social-media leader warned on ad sales.

Here's where US indexes stood as the market closed at 4:00 p.m. on Thursday: 

• S&P 500: 4,137.23, down 1.18%

• Dow Jones Industrial Average: 32,784.30, down 0.76% (251.63 points)

• Nasdaq Composite: 12,595.61, down 1.76%

Here's what else is going on: 

• The bond market is acting like it's 1969, when rising yields preceded a recession, according to JPMorgan.
• A portfolio manager said the no-recession trade is to buy high-yield bonds.
• The Fed is crushing small businesses across the US. 
• Investing pioneer Rob Arnott warned that recessions always start with a booming economy.
• A veteran investor said stocks will rally when Israel's ground invasion of Gaza begins.
• Here's how Wall Street is reacting to Meta's third-quarter earnings.
• The stock market is riskier and more volatile than it was in past decades. 

In commodities, bonds, and crypto: 

• Oil prices dropped, with West Texas Intermediate down 2.3% to $83.40 a barrel. Brent crude, the international benchmark, moved lower 2.3% to $88.08 a barrel.
• Gold was flat at $1,994.50 per ounce.
• The 10-year yield tumbled 10.6 basis points to 4.847%.
• Bitcoin slipped 1.6% to $34,113.