U.S. stocks fell on Thursday, extending losses for a third straight session as investors weighed stronger-than-expected economic data against uncertainty over Federal Reserve policy.
The Dow Jones Industrial Average dropped 173.96 points, or 0.38 percent, to 45,947.32. The Standard and Poor's 500 lost 33.25 points, or 0.5 percent, to 6,604.72. The Nasdaq Composite Index declined 113.16 points, or 0.5 percent, to 22,384.7.
Nine of the 11 primary Standard and Poor's 500 sectors ended lower, with health care and consumer discretionary leading the laggards by falling 1.67 percent and 1.47 percent, respectively. Energy and technology outperformed, rising 0.87 percent and 0.03 percent.
Economic data showed initial jobless claims in the United States fell to 218,000 last week, down from 232,000 the prior week, signaling resilience in the labor market. Meanwhile, U.S. second-quarter GDP was revised sharply higher to an annualized pace of 3.8 percent, compared with a 0.6 percent contraction in the first quarter and market expectations of 3.3 percent.
The strong readings reduce the likelihood of further rate cuts this year, with Fed officials divided on the policy outlook after the Fed's rate cut earlier this month.
Meanwhile, in corporate moves, shares of Oracle and Tesla both extended losses, with Tesla sliding over 4 percent. Costco is set to report quarterly results after the bell, with analysts anticipating solid sales growth as value-conscious consumers hunt for bargains.
Investors now await Friday's release of the personal consumption expenditures price index, the Fed's preferred inflation gauge, for further clues on the interest rate path.
U.S. stocks close lower despite strong economic data
Canadian Prime Minister Mark Carney's official visit to China signals a policy shift towards building a more pragmatic relationship between the two countries, according to a Canadian researcher.
Carney arrived in Beijing on Wednesday to begin an official visit to China through Saturday, which marks the first trip by a Canadian Prime Minister to the country in eight years.
Robert Hanlon, director and principal investigator of Canada and the Asia Pacific Policy Project (CAPPP) at Thompson Rivers University in British Columbia, told the China Global Television Network (CGTN) that Carney's visit indicates Canada is recalibrating its strategic perception of China, which could cement the foundation for the country's economic diversification efforts and boost the development of bilateral cooperation.
"I think it's a clear message that he has moved Canada's strategy to a much more pragmatic, interest-based, -focused relationship with our trading partners, moving away from values-based narratives that we might have heard on previous governments. Canada has spoken about moving from what the Prime Minister's Office is calling "from reliance to resilience", and that means diversifying our economies and our trade everywhere in the world. And so China being our second largest trading partner, it makes perfect sense for our PM to head to Beijing," he said.
The scholar also noted the huge cooperation potential between the two sides in economic and trade fields, citing Canada's efforts to step up shipments of liquefied natural gas (LNG) and the planned construction of an oil pipeline in Alberta which aims to increase export access to Asian markets. "Canada and China both share tremendous economic opportunities together and so finding ways to enhance our exports. Canada specifically looking to build out its LNG and oil, kind of export market. We know Canada is a major producer of critical minerals and China is a buyer. And so there's a lot of synergy between that kind of those kind of markets," he said.
Canadian PM's visit to China paves way for more pragmatic trade ties: scholar
