Stocks fall, GDP revised up

Stocks dropped, putting them on course for a third day of declines following Monday’s records. It appears that the markets are leveling out after extreme highs earlier.

Oracle’s stock dropped after the software company sold bonds to finance its artificial intelligence buildout. Micron also declined. In the real economy, a poor quarter from auto reseller CarMax sent its shares tumbling and raised fresh questions about the health of the tariff-hit auto sector.

All three major indexes were lower. If that holds they will all drop for three straight days for the first time since March in the runup to President Trump’s Liberation Day, when it was expected that tariffs would lead to responses from many nations.

The final estimate of second-quarter GDP growth came in stronger than expected, at 3.8%, versus a prior estimate of 3.3%. Weekly jobless claims showed a drop in the number of Americans who newly filed for unemployment benefits. Monthly durable goods orders bounced back, driven by a surge in aircraft orders.

Other developments that happened include the 10-year Treasury yield hitting 4.19% and Intel’s shares rising 7% after a report the chipmaker approached Apple for an investment.

It is unclear if the drop in stocks represents a long term trend, or if it is part of the normal ups and downs that a healthy market goes through.