Stocks sold off following a stronger than expected report on economic growth that stokes fears that the Federal Reserve may start to pull back on its bond buying program. Third quarter GDP rose 2.8 percent,
expectations were for 2 percent. Coupled that with a drop in weekly unemployment as everybody waits for the October jobs report and you have the recipe for a sell off.
And that’s exactly what happened.
The Dow falling one percent or about 153 points, to 15,593, a weak tech sector on the NASDAQ, dragging that index down 74 points and the S&P slid 23.
That stronger than expected GDP number surprised economist on Wall Street. But analysts are warning that hang over effects from the government shutdown last month were likely tempered growth in the fourth quarter.
Steve Liesman has more.