US Stocks Sink, VIX Soars As Overheated Economy, Mixed Earnings Complicate Fed’s Path: What’s Driving Markets Thursday?

Wall Street experienced a significant downturn Thursday as volatility surged, triggered by a shift in risk sentiment following a combination of mixed earnings reports and stronger-than-predicted economic data, with the latter reviving concerns for an additional rate hike down the road.

The U.S. economy exhibited robust growth, expanding at an annualized rate of 4.9% in the third quarter, surpassing expectations of 4.3%. This achievement marks the strongest growth rate since the fourth quarter of 2021 and one of the most robust performances of the pre-pandemic decade.