Midday Market Shifts: Tech Slides Continue as Economic Data Fuels Rate Hike Concerns

Market Overview - U.S. stock markets are experiencing a pullback, with major indexes declining for three consecutive sessions after reaching record highs earlier in the week, indicating a pause for investors to digest economic data and corporate news [1][10] - The S&P 500 is down approximately 0.6%, the Nasdaq Composite has fallen 0.9%, and the Dow Jones Industrial Average shows a modest decline of 0.1%, yet all indexes remain near all-time highs [2] Economic Indicators - The final revision to second-quarter GDP shows an annual growth rate of 3.8%, revised up from 3.3% [3] - Weekly jobless claims fell to a two-month low of 218,000, indicating a resilient labor market [3] - Core capital goods new orders rose by 0.6% month-over-month, exceeding expectations [3] - The 10-year Treasury yield increased to 4.18%, up from 4.15%, which may negatively impact stock prices due to rising borrowing costs [3] Upcoming Economic Data - Investors are awaiting the release of the August Personal Consumption Expenditures (PCE) index, which is crucial for shaping expectations regarding the Federal Reserve's monetary policy [4] Earnings Reports - CarMax (KMX) shares fell nearly 12% after missing second-quarter profit targets, while THOR Industries Inc. (THO) surged 6.1% after exceeding earnings estimates [5] - Other companies reporting earnings include Accenture plc (ACN), Jabil Inc. (JBL), Synnex Corp. (SNX), BlackBerry Limited (BB), and LuxExperience B.V. (LUXE) [5] Notable Stock Movements - Intel (INTC) shares surged nearly 7% following reports of discussions with Apple (AAPL) regarding potential collaboration [6] - IBM (IBM) rose over 5% due to positive news related to quantum computing [7] - Tesla (TSLA) shares declined by 3.5%, while Oracle (ORCL) fell 4.7% for the third consecutive day [7] - Amazon (AMZN) shares decreased after agreeing to a $2.5 billion settlement over deceptive subscription practices [8] - Birkenstock (BIRK) shares jumped close to 5% after pre-announcing strong results, while Freeport-McMoRan (FCX) sank 11.6% due to lower sales forecasts [9] Market Sentiment - The overall market sentiment is cautious as investors weigh strong economic data against potential implications for monetary policy, leading to a rotation out of high-flying tech stocks [10]