Daily Summary of Business & Economy · Final editionThursday 29 October 2026 · UTC
Business & Economy News: 29 October 2026
US economy grows 3.4%, ECB holds at 2.5%, Alphabet suffers its worst day
The US economy grew at a 3.4% annual rate in the third quarter, faster than expected, while the European Central Bank held rates at 2.5% on the same day Christine Lagarde announced she will step down. On Wall Street, Alphabet had its worst day ever and dragged the Nasdaq lower, Amazon fell after hours on weak results, and oil eased on hopes of renewed US-Iran talks.
ECB holds deposit rate at 2.5% as Lagarde announces departure
The European Central Bank kept its deposit facility rate at 2.5%, as expected, after a 25 basis point hike in September. Markets read the decision as a hawkish pause, with money markets pricing about a 67% chance of a December hike, as the bank tries to stop energy inflation from becoming entrenched. Earlier on Thursday, President Christine Lagarde announced she will step down, with CryptoTicker reporting that she leaves in February.
The dollar gained against the euro after the decision.
US economy grows at 3.4% annual rate in third quarter, beating forecasts
Real GDP rose at a 3.4% annual rate from July to September, up from 2.2% in the second quarter, according to the Bureau of Economic Analysis's advance estimate. Investment, consumer spending and government spending drove the gain, partly offset by lower exports, and the pace beat economists' 3.1% forecast and was the fastest in a year.
Price pressures eased: the PCE price index rose 2.1% after 5.0% in the second quarter, and core PCE rose 2.5% after 3.3%. The second estimate is due on November 25.
Oil eases on hopes of renewed US-Iran peace talks but stays above $100
Brent crude settled down 44 cents at $114.88 a barrel and WTI fell 78 cents to $102 in a choppy session, after both had dropped more than $2 earlier in the day. Prices eased after reports that US Vice President JD Vance had contacted Iranian security official Mohsen Rezaei to try to restart peace negotiations, and Iran's foreign minister said Tehran remained open to diplomacy.
Traders are still weighing the risk of Houthi attacks and possible US military action after the November 3 midterm elections, and prices remain at multi-month highs.
Alphabet's worst day ever drags Nasdaq lower as most stocks rise
Alphabet closed 12.64% lower, its worst day on record, after a third quarter in which it spent more cash than it took in, wiping out roughly $500 billion of market value. The Nasdaq Composite fell 1.38% to 26,184.72 and the S&P 500 slipped 0.30% to 7,720.39, ending a three-day winning streak, while software stocks slumped as ServiceNow fell 25% and Fortinet 21% after their results.
Most stocks still rose as investors rotated into health care, real estate and staples, with Eli Lilly up 6.63% and Merck up 3.83% after beating forecasts. After the close, Intel fell about 23% in extended trading on a weaker revenue forecast.
Amazon misses third-quarter forecasts as AI spending drains cash
Amazon reported third-quarter earnings of $1.89 a share on revenue of $201.94 billion, both below analyst estimates, and its shares fell more than 6% in extended trading. Free cash flow was negative for a second straight quarter, an outflow of $42.4 billion over the trailing twelve months, as AI investment rose, and the company kept its 2026 capital spending forecast at $220 billion.
Cloud unit AWS grew 39% to $45.98 billion, but the retail and advertising businesses were weaker.
Canada and UAE sign trade deal as Ottawa seeks US tariff relief
Canada and the United Arab Emirates signed a trade agreement under which both sides will cut tariffs, reduce administrative barriers and open more opportunities for businesses. The deal is part of Canada's push to expand trade beyond the United States, its largest economic partner.
Ottawa is also negotiating with Washington over US Section 232 duties, including tariffs of up to 50% on Canadian steel and 25% on automobiles, with Commerce Secretary Howard Lutnick central to those talks.
Illustration 
