Stocks Are Down for a Third Straight Day: Stock Market Today
Stocks have come a long way in a short time since April and remain near all-time highs as the end of the third quarter approaches.
The main U.S. equity indexes bounced off their intraday lows Thursday, but extended their respective losing streaks to three. The short-term trend continued despite incoming data showing both consumers and businesses remain resilient drivers of economic growth.
The Bureau of Economic Analysis said before the opening bell that its final estimate of second-quarter gross domestic product showed the U.S. economy grew by 3.8% from April to June, faster than the 3.3% it saw in the second reading.
"It only seems fitting that the most distrusted bull market of all time is accompanied by the most distrusted economy of our lifetime,"
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Northlight Asset Management Chief Investment Officer Chris Zaccarelli observes. Zaccarelli adds that economic growth is exceeding "elevated" inflation "by a very large margin."
Acknowledging "the economy is not the stock market and vice versa," Zaccarelli suggests "to the extent that the companies reporting earnings are subject to economic cycles, a stronger economy allows for stronger earnings."
This cycle "usually leads to higher stock prices," he says, "and we have been witnessing this since April."
Indeed, a historic rally off the post-Liberation Day lows had the S&P 500 more than 2% above the average year-end analyst forecast among those tracked by Bloomberg, 6,486. "Only in 2024 and 1999," Alexandra Semenova writes, "have the calls lagged the market's actual return so much around this time of the year."
Meanwhile, the Census Bureau said new orders for durable goods increased by 2.9% in August following two months of declines.
"If the economic data keep going in this direction," suggests NYK Capital Management co-founder Daniel Altman, "it may be harder for the Federal Reserve to justify further rate cuts."
Altman explains that "the gradual settling of the current administration's policies has offered the economy some respite in the past month" and that "less uncertainty means less paralysis of hiring and investment decisions."
He is wary, however: "If we're going to have a government shutdown, it's anyone's guess what will happen next."
Next up on the economic calendar are the Fed's preferred inflation gauge, the Personal Consumption Expenditures Price Index (PCE), and the final University of Michigan Surveys of Consumers data for September, which are both due on Friday morning.
The next jobs report, meanwhile, is scheduled for release before the opening bell on Friday, October 3.
As of Thursday's closing bell, the blue-chip Dow Jones Industrial Average slipped 0.4% to 45,947, the broad-based S&P 500 fell 0.5% to 6,604, and the tech-heavy Nasdaq Composite tumbled 0.5% to 22,384.
IBM and INTC rise
International Business Machines (IBM, +5.2%) was No. 1 among the 30 Dow Jones stocks after HSBC (HSBC, -1.4%) said it used quantum computers made by Big Blue to predict price action in the bond market.
According to IBM, "The hybrid quantum-classical methods employed by the HSBC-IBM team yielded up to a 34% improvement over purely classical techniques for predicting which trades would be completed."
Meanwhile, Intel (INTC) surged 8.9% on a Bloomberg report that management is soliciting Apple (AAPL, +1.8%) for an equity investment in the struggling chip maker.
The semiconductor stock is now up 69.5% year to date, including a recovery of 92.4% off its 2025 intraday low of $17.67 on April 8, with a little help from outside investors, including the federal government.
Intel announced on August 22 that the Trump administration would invest $8.9 billion for 10% of INTC stock, two weeks after President Donald Trump called for CEO Lip-Bu Tan to resign because of his ties to China.
KMX stock gets jammed
CarMax (KMX, -20.1%), on the other hand, is probably on its own. One of 30 stocks that could rally 30% or more based on Wall Street price targets, KMX was down as much as 25.1% after it reported second-quarter earnings Thursday morning.
The automobile vending machine operator said earnings were 64 cents per share, short of a FactSet-compiled consensus estimate of $1.04. Same-store sales declined 6.3% vs expectations for 1.1% growth.
Following what CEO Bill Nash described as a "challenging" quarter, CarMax said it would cut costs by "at least $150 million" over the next 18 months.
Lithium Americas soars on potential U.S. stake
Lithium Americas (LAC, +22.3%) was up as much as 25.3% after the mining company nearly doubled on Wednesday as it continues to discuss terms of an equity stake with the Trump administration.
The White House has proposed the equity stake in lieu of a $2.26 billion loan from the Department of Energy to support development of its Thacker Pass mine.
Vancouver, Canada-based Lithium Americas owns the northern Nevada lithium mine in a joint venture with General Motors (GM, +1.1%).
Related content
- How to Spot a Bubble in Stocks
- Buying Gold as an Investment: What to Watch For
- Alternatives to the Rule of 72
-
Forget FIRE: Why ‘FILE’ Is the Smarter Move for Child-Free DINKsHow shifting from "Retiring Early" to "Living Early" allows child-free adults to enjoy their wealth while they’re still young enough to use it.
-
7 Tax Blunders to Avoid in Your First Year of RetirementA business-as-usual approach to taxes in the first year of retirement can lead to silly trip-ups that erode your nest egg. Here are seven common goofs to avoid.
-
How to Plan for Social Security in 2026's Changing LandscapeNot understanding how the upcoming changes in 2026 might affect you could put your financial security in retirement at risk. This is what you need to know.
-
7 Tax Blunders to Avoid in Your First Year of Retirement, From a Seasoned Financial Planner
A business-as-usual approach to taxes in the first year of retirement can lead to silly trip-ups that erode your nest egg. Here are seven common goofs to avoid.
-
How to Plan for Social Security in 2026's Changing Landscape, From a Financial Professional
Not understanding how the upcoming changes in 2026 might affect you could put your financial security in retirement at risk. This is what you need to know.
-
6 Overlooked Areas That Can Make or Break Your Retirement, From a Retirement AdviserIf you're heading into retirement with scattered and uncertain plans, distilling them into these six areas can ensure you thrive in later life.
-
I'm a Wealth Adviser: These Are the 7 Risks Your Retirement Plan Should AddressYour retirement needs to be able to withstand several major threats, including inflation, longevity, long-term care costs, market swings and more.
-
Stocks Struggle for Gains to Start 2026: Stock Market TodayIt's not quite the end of the world as we know it, but Warren Buffett is no longer the CEO of Berkshire Hathaway.
-
How New Investors Can Pick Their Perfect Portfolio, According to a ProSee what Cullen Roche has to say about finding your perfect portfolio as a new investor and his two-word answer on where he thinks the stock market is headed in 2026.
-
High-Net-Worth Retirees: Don't Overlook These Benefits of Social SecurityWealthy retirees often overlook Social Security. But timed properly, it can drive tax efficiency, keep Medicare costs in check and strengthen your legacy.
-
Do You Have an Insurance Coverage Gap for Your Valuables? You May Be Surprised to Learn You DoStandard homeowners insurance usually has strict limits on high-value items, so you should formally "schedule" these valuable possessions with your insurer.
