Yahoo Finance·2026-02-20 00:01Economic Overview - US economic growth cooled in the fourth quarter, with GDP growth at an annualized rate of 1.4%, significantly below the expected 2.9% [3][9][10] - The deceleration in GDP was attributed to downturns in government spending and exports, along with a slowdown in consumer spending, partially offset by increased investment [10] Inflation Data - The core personal expenditures index, the Fed's preferred inflation gauge, rose by 0.4% in December, exceeding economists' expectations of 0.3% [5][6] - On an annual basis, the headline and core PCE price indexes increased by 2.9% and 3.0%, respectively, in December, slightly above economist estimates [7] Consumer Spending and Income - Personal spending increased by 0.4% in December, surpassing expectations of 0.3% but lower than the previous month's growth of 0.5% [8] - Personal income remained stable, rising by 0.3% in December, consistent with the previous month's growth [7] Market Reactions - The S&P 500 fell approximately 0.3%, the Dow Jones Industrial Average decreased by 0.4%, and the Nasdaq Composite dropped by 0.5% [2] - Concerns about stress in the private credit sector were highlighted, particularly following Blue Owl's halt to withdrawals, raising fears of a potential financial crisis [3] Company-Specific News - Chemours Co. reported a loss of $47 million in its fourth-quarter earnings, leading to a 9% drop in its stock [12][14] - Grail's stock plummeted over 40% after disappointing cancer trial results [13] - Opendoor's stock surged by 14% following a 46% increase in home acquisition volume, with revenue reaching $736 million, exceeding Wall Street estimates [17] - Live Nation's stock rose more than 3% after reporting an 11% increase in fourth-quarter revenue to $6.31 billion, driven by a 12% gain in concert sales [14]