US shares start Wednesday’s session lower following poor GDP data released
Date
10/31/2024 8:02:20 AM
(MENAFN) US Stocks opened lower on Wednesday as investors reacted to the advanced GDP figure for the third quarter, which came in below expectations, leading to disappointment in the market. The Dow Jones Industrial Average saw a slight decline of 18 points, or 0.04 percent, settling at 42,214 by 9:41 a.m. EDT (1341 GMT). Similarly, the S&P 500 dropped 14 points, or 0.25 percent, to 5,818, while the nasdaq Composite experienced a loss of 56 points, or 0.3 percent, bringing it to 18,655.
According to the Commerce Department's first advance reading, the US economy grew by 2.8 percent in the third quarter, which was lower than the estimated growth of 3 percent. This weaker-than-expected performance has contributed to the overall market decline. In conjunction with these developments, the VIX volatility index, often referred to as the "fear index," rose by 5.2 percent to reach 20.34, indicating increased market anxiety. Additionally, the yield on the 10-year US Treasury note decreased by 1 percent, settling at 4.230 percent.
In currency markets, the US dollar index remained steady at 104.31, while the euro appreciated slightly against the dollar, trading at USD1.0830, up 0.1 percent. Precious metals exhibited mixed results; gold saw a minor increase of 0.05 percent, priced at USD2,776 per ounce, whereas silver fell by 2.4 percent, trading at USD33.63.
Oil prices showed some resilience, with a 1.2 percent increase, as global benchmark Brent crude reached USD71.56 per barrel, while US benchmark West Texas Intermediate was priced at USD67.97. This uptick in oil prices comes amid ongoing fluctuations in global energy markets, further influencing investor sentiment.
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