Market Snapshot: Dow falls over 600 points after strong economic data, bearish comments by David Tepper

by | Dec 22, 2022 | Stock Market

U.S. stocks were sharply lower in afternoon trade Thursday, more than erasing their gains from their biggest rally in three weeks after a round of upbeat economic data and a warning from hedge-fund titan David Tepper that he was “leaning short” against both stocks and bonds on expectations the Federal Reserve and other central banks will continue tightening into 2023. Positive economic news can be a negative for stocks by underlining expectations that monetary policy makers will remain aggressive in their efforts to quash inflation.

What’s happening
The Dow Jones Industrial Average
DJIA,
-1.49%
fell 669 points, or 2%, to 32,708.

The S&P 500
SPX,
-1.99%
shed 97 points, or 2.5%, to 3,780.

The Nasdaq Composite
COMP,
-8.82%
fell 347 points, or 3.3%, to 10,362.

On Wednesday, all three major indexes recorded their best gain in three weeks as the Dow advanced 526.74 points.What’s driving markets Investors saw another raft of strong economic data Thursday morning, including a revised reading on third-quarter gross domestic product which showed the U.S. economy expanded more quickly than previously believed. Growth was revised up to 3.2%, up from 2.9% from the previous update released last month. The number of Americans who applied for unemployment benefits in the week before Christmas rose slightly to 216,000, but new filings remained low and signaled the la …

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