Investing.com - U.S. stocks dropped on Thursday after official U.S. data revealed the world's largest economy grew more than expected in the third quarter and rekindled expectations for the Federal Reserve to scale back stimulus programs possibly in December.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.97%, the S&P 500 index fell 1.32%, while the Nasdaq Composite index fell 1.90%.
In the U.S. earlier, official data revealed that the economy grew at an annual rate of 2.8% in the three months to September, far surpassing expectations for a 2.0% reading. The U.S. economy grew by 2.5% in the preceding quarter.
The robust data rekindled expectations that the Federal Reserve could announce plans to scale back its USD85 billion-a-month stimulus program soon, possibly as its next monthly meeting in December.
Stimulus programs aim to drive recovery by depressing borrowing costs, boosting stocks in the process, and talk of their dismantling can deflate share prices namely by fueling uncertainty over how equities will perform without a monetary crutch.
Separately, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 9,000 to a seasonally adjusted 336,000, largely in line with analysts' forecasts for a claims to fall by 10,000.
Elsewhere, the popular micro-blogging social network Twitter soared in its first day of trading on Thursday, closing in at USD44.90 a share, up 72.69% above its USD26 per-share IPO price.
Leading Dow Jones Industrial Average performers included IBM, up 0.45%, DuPont, up 0.14%, and Pfizer, which was down 0.13%.
The Dow Jones Industrial Average's worst performers included Walt Disney, down 2.64%, Goldman Sachs, down 2.34%, and AT&T, down 1.93%.
European indices, meanwhile, finished largely lower.
After the close of European trade, the EURO STOXX 50 fell 0.37%, France's CAC 40 fell 0.14%, while Germany's DAX 30 rose 0.44%. Meanwhile, in the U.K. the FTSE 100 finished down 0.66%.
On Friday, the University of Michigan is to release the preliminary reading of its consumer sentiment index. The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.97%, the S&P 500 index fell 1.32%, while the Nasdaq Composite index fell 1.90%.
In the U.S. earlier, official data revealed that the economy grew at an annual rate of 2.8% in the three months to September, far surpassing expectations for a 2.0% reading. The U.S. economy grew by 2.5% in the preceding quarter.
The robust data rekindled expectations that the Federal Reserve could announce plans to scale back its USD85 billion-a-month stimulus program soon, possibly as its next monthly meeting in December.
Stimulus programs aim to drive recovery by depressing borrowing costs, boosting stocks in the process, and talk of their dismantling can deflate share prices namely by fueling uncertainty over how equities will perform without a monetary crutch.
Separately, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 9,000 to a seasonally adjusted 336,000, largely in line with analysts' forecasts for a claims to fall by 10,000.
Elsewhere, the popular micro-blogging social network Twitter soared in its first day of trading on Thursday, closing in at USD44.90 a share, up 72.69% above its USD26 per-share IPO price.
Leading Dow Jones Industrial Average performers included IBM, up 0.45%, DuPont, up 0.14%, and Pfizer, which was down 0.13%.
The Dow Jones Industrial Average's worst performers included Walt Disney, down 2.64%, Goldman Sachs, down 2.34%, and AT&T, down 1.93%.
European indices, meanwhile, finished largely lower.
After the close of European trade, the EURO STOXX 50 fell 0.37%, France's CAC 40 fell 0.14%, while Germany's DAX 30 rose 0.44%. Meanwhile, in the U.K. the FTSE 100 finished down 0.66%.
On Friday, the University of Michigan is to release the preliminary reading of its consumer sentiment index. The U.S. is to round up the week with the closely watched government data on nonfarm payrolls and the unemployment rate.