Wall Street Today | Big Tech's Tumble Shows the Risks of Uneven Growth

Stocks extended losses Thursday, with tech stocks leading the Nasdaq into correction territory after "Magnificent Seven' earnings disappointed. GDP growth numbers for the third quarter came in exceptionally hot at nearly 5%, after dropping to 2% over the summer. Oil fluctuated as the market grappled with an unclear Israel-Hamas conflict.

The rout in US stocks has brought the S&P 500 Index to a crucial inflection point. It’s teetering near a correction after breaching 4,200 for the first time since May — a key technical level that may point to a longer-term selloff. The S&P briefly breached 4,130 during intraday trading Thursday before bouncing back above.

If the selling continues and the benchmark gauge for American equities stays below that psychological threshold, there are few levels to lure dip buyers, according to technical analysts, who monitor daily averages and other metrics to determine stock-market momentum.

The U.S. economy grew even faster than expected in the third quarter. GDP rose at a 4.9% annualized pace in the July-through-September period, up from an unrevised 2.1% pace in the second quarter. Economists surveyed by Dow Jones had been looking for a 4.7% acceleration.

The sharp increase came due to contributions from consumer spending, increased inventories, exports, and government spending.

This is the consequence of narrow market leadership," said Steve Sosnick, chief strategist at Interactive Brokers, in an email. "The bar gets raised ever higher, and if enough people crowd in, there are fewer incremental buyers if they want to get out."

Oil dropped in wider financial markets as prices dented gains from Israel’s planned ground invasion of Gaza. West Texas Intermediate fell to around $84 a barrel, adding to a two-week string of sessions in which prices have swung in a range of more than $2.

“The turbulent price action” continues to “whipsaw algorithmic trend followers” and could spark selling by commodity trading advisers,  Dan Ghali, a commodity strategist at TD Securities, told Bloomberg. Equity markets were also lower, and the dollar firmed on Thursday, making commodities priced in the currency less appealing.

Mastercard Tops Estimates as International Travel Spending Rises