Harsh Reality of GDP Weighs Down Stocks

Dow falls 225
By Newser Editors,  Newser Staff
Posted Jul 30, 2020 3:10 PM CDT
Harsh Reality of GDP Weighs Down Stocks
An American flag hangs at the New York Stock Exchange on July 16, 2020.   (AP Photo/Mark Lennihan)

On a day when the latest GDP report registered an astonishing 33% drop in the second quarter, you can't expect the stock market to do anything but drop, too. And that's mostly what happened: The Dow fell 225 points to 26,313 and the S&P 500 fell 12 points to 3,246. The tech-heavy Nasdaq, meanwhile, rose 44 points to 10,587. The latter is largely because shares of big tech companies rose ahead of earnings reports, per CNBC. Apple, Amazon, Alphabet, and Facebook all are due to report after the closing bell.

The broader market, though, couldn't shake off the huge GDP decrease. “When you see that number in print, it becomes a reality,” Bill Northey of US Bank Wealth Management tells the Wall Street Journal. “It solidifies the amount of economic damage we have already sustained.” President Trump's tweet floating the idea of delaying the election, posted before the opening bell, also rattled investors, per the Journal. (More stock market stories.)

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