U.S. stocks post back-to-back drop as big tech shares tumble

U.S. stocks closed sharply lower Thursday, pulled down by tumbling shares of big technology firms, despite a strong report on quarterly economic growth. The Dow Jones Industrial Average shed about 251 points, or 0.8%, ending near 32,784, according to preliminary FactSet data. The S&P 500 index closed down 1.2% and the Nasdaq Composite Index dropped 1.8%, sinking the tech-heavy index deeper in correction territory. Stocks continued to feel pressure from skittishness around third-quarter earnings and about the so-called Magnificent Seven stocks. Shares of Meta Platforms (META), Alphabet (GOOG), Microsoft (MSFT), Nvidia (NVDA), Tesla (TSLA), Apple (AAPL) and Amazon.com (AMZN) each ended lower Thursday, while the S&P 500's communication services sector fell 2.6%, according to FactSet. U.S. GDP was pegged at 4.9% in the third quarter as consumers kept spending, helping to stave off a U.S. recession. The 10-year Treasury yield (BX:TMUBMUSD10Y)fell back to 4.843%.

-Joy Wiltermuth

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

10-26-23 1604ET

Copyright (c) 2023 Dow Jones & Company, Inc.