Stock Market Today: GDP Up, Tech Stocks Down

GDP Revision Shows US Economy Grew More Than Previously Thought in Second Quarter

47 minutes ago

The output of the U.S. economy as measured by Gross Domestic Product bounced back more than previously thought in the second quarter, powered by an increase in consumer spending.

That’s according to a report from the Bureau of Economic Analysis, which said that GDP grew at an inflation-adjusted annual rate of 3.8% in the second quarter, compared with its previous estimate of 3.3% growth. It was the fastest growth since the third quarter of 2023, and a rebound from the 0.6% decline in GDP in the first quarter. Forecasters had expected growth to stay at 3.3% according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.

The increased estimate was largely due to an upward revision in consumer spending, which rose at a 2.5% annual rate over the quarter, the BEA said.

The revised figures suggest the economy is staying resilient amid President Donald Trump’s trade wars, which economists say have slowed down hiring and stoked inflationat least temporarily, and have made consumers more pessimistic about inflation and the economy according to surveys. Consumer spending is the main engine of economic growth, responsible for 68% of the GDP.

“The big surprise is how strong U.S. consumers continue to be: despite so much uncertainty and an ongoing gloominess in sentiment, consumers keep spending,” Heather Long, chief economist at Navy Federal Credit Union, wrote in a commentary.

Read the full article here.

–Diccon Hyatt

CarMax Stock Dives on Weaker-Than-Expected Results

1 hr 18 min ago

CarMax (KMX) was by far the worst-performing stock in the S&P 500 in the first hour of trading Thursday after the used-car retailer’s second-quarter results came in well below expectations.

The Richmond, Va.-based firm reported quarterly profit of $0.64 per share on sales that fell 6% year-over-year to $6.59 billion. Analysts surveyed by Visible Alpha had expected $1.06 and $7.07 billion, respectively.

Shares cratered 25% in response, and now are down nearly 50% year-to-date.

US Investigates Imports of Medical Devices, Robotics for National Security; Tariffs Possible

1 hr 54 min ago

The U.S. has launched national security investigations into imports of robotics, industrial machinery and medical devices, including personal protective equipment like masks, putting imports of these products at risk for the next stage of tariffs.

According to Federal Register filings, the Department of Commerce said that the investigation, under “Section 232” of the Trade Expansion Act, will look into whether importing these products infringes on national security. The inquiries started on Sept. 2, and they appear to be part of the president’s move to boost domestic manufacturing in key industries by making imports more expensive.

The filings said the Commerce Department is “particularly interested in comments and information” on how much current U.S. production of these products can meet domestic demand, the extent of foreign supply chains in these goods, and how much foreign nations can “weaponize” their control over the supply of these products.

The investigation into medical gear, aimed at redirecting production of these imports in the U.S., appears to target China. During the pandemic, the country halted exports of PPE, such as the virus-filtering N95 mask and nitrile gloves, putting hospital workers at risk.

Read the full article here.

–Nisha gopalan

Stock Futures Point Mostly Lower

4 hr 22 min ago

Futures tied to the Dow Jones Industrial Average were little changed.

S&P 500 futures slipped 0.2%.

Nasdaq 100 futures fell 0.3%.