US stocks fell for a third session on Thursday, as investors weighed strong economic data against expectations for future Federal Reserve rate cuts. The S&P 500, Nasdaq 100 slid 0.5% each, the Dow lost 175 points, with all sectors except energy in negative territory. Initial jobless claims dropped to 218K for the week ended September 20, signaling a resilient labor market, while second-quarter GDP growth was revised sharply higher to an annualized 3.8%, fueled by robust consumer spending and business investment.Market participants are now recalibrating expectations for the Fed’s next moves, with investor bets on an additional 25bps cut in October dropping sharply. Tech stocks dragged the most, with Oracle sliding 5%, Tesla falling 4%. CarMax plunged 20% after reporting disappointing earnings, while Intel jumped 9% on news it approached Apple about an investment. Investors now await Friday’s release of the Fed’s preferred inflation gauge, the PCE index, for clues on the Fed’s next move.