US stocks open mixed after Q3 GDP reaffirms Fed rate-hike expectations
|On the last trading day of the week, major US equity indices opened mixed after the US Q3 GDP print pointed to a steady economic growth.
The preliminary release of third-quarter growth numbers showed US economic expanded at 2.9% annualized rate, marking the fastest pace of growth since mid-2014 and much better-than 1.4% recorded in the previous quarter. The reading surpassed market expectations and reaffirmed market expectations that US economy is strong enough to withstand a Fed rate-hike.
The next FOMC meeting is scheduled on Nov. 8 but given its proximity to the US presidential elections, market participants have ruled out any Fed action in November and are pricing-in higher possibilities of a rate-hike at December meeting.
At the time of writing, the Dow Jones Industrial Average (DJIA) was higher by 25 point at 18,195, while the broader S&P 500 index was down 3 point to 2,130. Meanwhile, tech-heavy Nasdaq composite index underperformed the broader indices and lost over 20 points and dipped below 5,200 mark. At opening levels, DJIA was slightly higher for the week, while the rest of the two major indices were set to record weekly losses.
In other markets, the US Dollar traded with mild losses against its major counterparts and seems to benefit dollar-denominated commodity - Gold. Meanwhile, WTI crude oil traded with negative bias and lost nearly 1.0% on Friday.
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