Dow closes nearly 200 points higher on better-than-expected GDP report, Nasdaq tumbles as Meta shares plummet; European markets close mixed as investors track earnings, ECB hike; Credit Suisse down 18%
The Dow Jones Industrial Average closed higher Thursday after new data showed third-quarter GDP grew faster than expected and hinted at waning inflation, encouraging investors to buy stocks linked to the health of the economy.
The Dow climbed 194.17 points, or 0.6%, to end at 32,033.28 for its fifth day of wins. Shares of Caterpillar, McDonald’s and Honeywell led the 30-stock index higher after the companies reported better-than-expected earnings. The Dow traded up as much as 549 points during the day.
The S&P 500 closed down 0.6%, ending the session at 3,807.30. The Nasdaq Composite lost 1.6%, closing at 10,792.68, as a rout in Meta and other tech stocks weighed on the index.
The U.S. economy grew at a 2.6% annualized pace for the period, against the Dow Jones estimate for 2.3% growth, the Bureau of Economic Analysis report showed. The
Still the technology sector continued its recent woes, holding the broader stock market back. Meta shares plummeted about 24.6% on a weak fourth-quarter forecast and disappointing third-quarter earnings issued Wednesday. The company also said it would lose even more money next year building out the metaverse. The report led to several analysts downgrading the stock.

The pan-European Stoxx 600 provisionally closed 0.1% higher, with oil and gas stocks up 3.5% to lead gains. Mining stocks and technology stocks ended the session down around 1.7% and 1.6%, respectively.
The blue chip index trimmed earlier losses after the European Central Bank announced a 75-basis-point interest rate hike — its third consecutive increase this year — while also revealing new conditions for European banks.
Credit Suisse shares tumbled more than 13% to the bottom of the Stoxx 600 by mid-afternoon trade after the Swiss lender posted a mammoth third-quarter loss and unveiled a radical restructuring plan.
Shell reported adjusted earnings of $9.45 million for the third quarter, in line with market expectations, but lower refining and trading revenues brought an end to its run of record quarterly earnings.
The oil major said it intends to increase dividend per share by around 15% for the final quarter of the year, to be paid out in March. The company also announced a new share buyback program, which aims to bring in an additional $4 billion of distributions and is expected to be completed by its next earnings release. The stock jumped almost 4% in early European trade off the back of these results.
Source: CNBC, Investing.com