US stocks fell on Thursday for the third session in a row as Wall Street weighed an unexpected drop in jobless claims and a sharp upgrade in GDP growth, developments that complicate the outlook for rate cuts amid uncertainty about Federal Reserve policy.

The Dow, S&P 500, and Nasdaq fell as uncertainty surrounding Federal Reserve rate cuts dominated the stock market.

The S&P 500 popped 0.6%, while the Nasdaq composite bolstered its afternoon gain to 0.4%, after three straight days of losses. Meanwhile, small-cap stocks were robust performers, with the Russell 2000 index rising 0.9%.

Fed’s Powell says stocks are ‘fairly highly valued.’ These 3 charts show he’s right.

Wall Street closed lower on Thursday, pulled down by utilities and consumer stocks. Investors continued to grow further cautious, worried that Fed chair Jerome Powell might deliver hawkish comments on Friday that could fuel market volatility. Unexpectedly ...