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Q3 GDP Growth Hits 3.4% as AI Investment Soars

By Drooid · Oct 29, 2026 · How we work

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Summary

The U.S. Commerce Department reported on Oct. 29, 2026 that Q3 GDP grew 3.4% annualized.
AI-related business investment surged, with non-housing investment up 12.7% annualized.
Consumer spending rose 3.8% annualized in the third quarter.
The personal consumption expenditures price index rose 0.5% in September, setting annual inflation at 3.6%.
The Federal Reserve left its benchmark rate at 3.75%-4.00% as inflation stays elevated.

History

The late-1990s dot-com boom surged after the Web’s 1993 Mosaic debut, driving the Nasdaq up 85.6% and the S&P 500 19.5% in 1999 and pushing the index’s price-earnings ratio above 200. Low interest rates, the 1996 Telecommunications Act and tax-cut incentives spurred venture money. In 2026, the Commerce Department notes AI-related investment climbing 12.7%, echoing that earlier tech-driven expansion.

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The late-1990s dot-com boom surged after the Web’s 1993 Mosaic debut, driving the Nasdaq up 85.6% and the S&P 500 19.5% in 1999 and pushing the index’s price-earnings ratio above 200. Low interest rates, the 1996 Telecommunications Act and tax-cut incentives spurred venture money. In 2026, the Commerce Department notes AI-related investment climbing 12.7%, echoing that earlier tech-driven expansion.

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