The U.S. markets settled lower on Thursday, with tech-laden Nasdaq leading losses after Alphabet’s disappointing quarterly results. Traders remained cautious as a closely watched report released by the Commerce Department showed the US personal consumption expenditures (PCE) price index rose 0.5% month-over-month in September 2026, the most in six months, following a 0.3% increase in August and in line with market expectations. Year-on-year, headline PCE inflation accelerated to 3.6% from 3.4% in September, while core inflation picked up to 3.1% from 3%. However, losses remain capped as traders took some support with a report released by the Commerce Department showed the US economy expanded an annualized 3.4% in Q3 2026, the most in a year, compared to a 2.2% rise in Q2 and above expectations of 3.2%. Meanwhile, the Labor Department released a report unexpectedly showing a slight dip in first-time claims for U.S. unemployment benefits in the week ended October 24th. The report said initial jobless claims edged down to 194,000, a decrease of 1,000 from the previous week’s revised level of 195,000. The street had expected jobless claims to rise to rise to 199,000.
Nasdaq decreased by 365.12 points or 1.38 percent to 26,184.72, S&P 500 fell by 23.59 points or 0.30 percent to 7,720.39 and Dow Jones Industrial Average was down by 132.54 points or 0.25 percent to 52,342.56.
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