The U.S. economy posted its fastest growth in almost three years, driven by the boom in artificial intelligence and strong spending by wealthier Americans.
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Related tickers and likely impact
DXY
▲ Likely positiveRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/28/2026 | 102.14 |
| Change that session | -0.22% |
SPY
▲ Likely positiveSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/28/2026 | 772.31 |
| Change that session | +0.34% |
EUR/USD
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/28/2026 | 1.11540 |
| Change that session | +0.24% |
XAU/USD
▼ Likely negativeRelevance: low
| Market | Gold |
|---|---|
| Close on 10/28/2026 | 4,067.54 |
| Change that session | +0.18% |
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Kevin Gordon, Schwab's head of Macro Research & Investing, said the negative public perception of the economy, driven by fears about AI and the labor market, is an 'interesting divergence' from the economic data. He noted third-quarter GDP came in stronger than expected, with strong business investment and resilient consumer spending, even as consumer sentiment remains weak. He expects inflation to be 'pretty sticky' due to the Middle East conflict, rising oil prices, lingering tariff effects, and the coming impact of the spike in diesel prices. Although the stock market has had sharp drops, it has continued to see many record highs.
- US Economy Grows Faster Than Expected
On October 29, the U.S. Commerce Department reported third-quarter GDP grew 3.4%, above the 3.2% forecast by economists in a Reuters poll. Consumer spending, which accounts for more than two-thirds of GDP, rose 3.8%, and business AI-related investment offset the impact of higher oil prices from the Middle East conflict. However, household sentiment remains gloomy, with President Donald Trump's approval rating at a record low and consumer confidence sharply lower, while gasoline still exceeds $4 a gallon (about $1.06 a liter), and the report came less than a week before midterm elections. The Fed held its rate at 3.75%-4% and acknowledged inflation “remains elevated,” with economists forecasting a rate hike in December. Some economists argue strong growth may not reflect the true economic picture as AI spending dominates, and expect consumer spending to slow.
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