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U.S. stocks edged lower Wednesday, hit by a disappointing growth update, but losses have been curtailed by a surge in Google owner Alphabet after the technology giant reported strong quarterly earnings.

At 09:35 ET (13:35 GMT), the Dow Jones Industrial Average fell 32 points, or 0.1%, the S&P 500 index dropped 6 points, or 0.1%, and the NASDAQ Composite slipped 5 points, or 0.1%.

US Q3 GDP disappoints

Data released earlier Wednesday showed that the US economy grew at a slower than expected rate in the third quarter, with gross domestic product in the world’s largest economy rising by 2.8% in the July-September period.

Economists had predicted the figure would match the second quarter’s pace of 3.0%.

The equivalent data out of the eurozone, released earlier Wednesday, surprised to the upside, with growth coming in at 0.4% on the quarter, above the 0.2% growth forecast.

Additionally, ADP private sector employment grew by 233,000, an increase from the revised 159,000 last month, a precursor of Friday’s widely-watched nonfarm payrolls data.

These readings are likely to factor into the outlook for interest rates, and come before a Fed meeting next week where the central bank is widely expected to cut rates by a smaller 25 basis points.

Volatility in stock markets is also expected to pick up in anticipation of the 2024 presidential election, with voting set for November 5. Donald Trump and Kamala Harris are set for a tight race, although recent polls and prediction markets showed Trump gaining some ground.

Alphabet rises on strong earnings

In the corporate sector, Alphabet stock surged 7% after the Google parent reported stronger-than-expected earnings for the September quarter, while stating that its artificial intelligence investments were now bearing fruit.

Its cloud business – which is closely linked to AI – grew at its fastest pace in eight quarters, while election-related spending also boosted advertisement sales, especially on YouTube.

Strong earnings from Alphabet set a positive tone for upcoming earnings from its tech peers, which are due in the coming days.

Meta Platforms and Microsoft are set to report after the close Wednesday, followed by Amazon and Apple on Thursday.

Elsewhere, Humana stock rose over 3% after the health insurer beat estimates for third-quarter profit, buoyed by strength in its government-backed Medicare Advantage insurance business for older adults.

On the flip side, chipmaker AMD slid nearly 10% after its guidance for the current quarter underwhelmed.

Kraft Heinz stock fell over 4% after the consumer goods company posted a steeper-than-expected fall in quarterly revenue as demand stayed weak for its branded meal kits and snacks.

Eli Lilly stock slumped over 12% after the drugmaker missed estimates for third-quarter profit, even as demand for its weight-loss drug soared, hurt by higher manufacturing and acquisition-related costs.

Crude aided by API inventories

Oil prices rose Wednesday, recouping some of the recent losses as industry data showed an unexpected draw in U.S. inventories.

By 09:35 ET, the Brent contract climbed 1.6% to $71.86 per barrel, while U.S. crude futures (WTI) traded 1.6% higher at $68.28 a barrel.

Data from the American Petroleum Institute showed U.S. oil inventories fell 0.57 million barrels in the past week, compared with expectations for a build of 2.3 million barrels.

The official inventory data is due later on Wednesday, and if this data matches the API numbers then it could indicate supplies in the world’s biggest fuel consumer were somewhat tight.