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FILE - In this July 16, 2014 file photo, trader Benedict Willis uses his moblie phone as he works on the floor of the New York Stock Exchange. Stocks are pricier, tensions between Russia and the West are mounting, and Israel has rolled into Gaza to stop a deadly air war. And yet investors shrug it all off and keep pushing the market higher. (AP Photo/Richard Drew, File)The Associated Press

Strong economic growth and impressive corporate earnings are doing little to soothe the nerves of investors this month, suggesting that it will take more than good news to keep the bull market going.

Major North American indexes suffered triple-digit losses on Thursday, just a day after the Commerce Department reported better-than-expected U.S. economic growth of 4 per cent in the second quarter, annualized, providing a huge source of relief.

In Canada, GDP grew 0.4 per cent in May, month-over-month, also topping expectations.

Yet stocks suffered one of their worst one-day drubbings of the year. The blue-chip Dow Jones industrial average tumbled 317.06 points or 1.9 per cent, to 16,563.30 – falling to its lowest level since May. The broader S&P 500 fell 2 per cent.

Canada's S&P/TSX composite index fell 183.83 points or 1.2 per cent, to 15,340.99.

Despite the latest strong economic readings, which followed a weak start to the year, there are some concerns hanging over the stock market.

For one, steady improvements in U.S. economic growth and employment come with a catch: They put pressure on the Federal Reserve to raise its key interest rate, which is close to zero per cent and has been largely credited with encouraging investors to buy stocks.

"That the Fed has waited this long attests to how nervous it is to take the punch bowl away this cycle," said David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates, in a note.

"I mean, we just celebrated the fifth anniversary of this economic expansion…and we have Fed policy more accommodative today than it was at the depths of the Great Recession."

For another, stocks have been enjoying an unusually long streak of steady gains. The S&P 500 has gone three years without a correction of 10 per cent or more, lifting it to record highs in July but also raising the likelihood of a setback, according to some observers.

Fed chair Janet Yellen recently warned of some "stretched" valuations in the stock market. And former chair Alan Greenspan said on Wednesday that stocks will suffer a significant correction "somewhere along the line."

Canada's benchmark index has also been unusually strong, hitting record highs in July.

Douglas Porter, chief economist at BMO Nesbitt Burns, and Robert Kavcic, senior economist, pointed out that the S&P/TSX composite index has added 3,000 points over the past year, for its third-largest annual advance on record and marking a "staggering contrast to the 'Sell Canada' recommendations that were all the rage just over a year ago."

Corporate performance in the second quarter has been good for the most part. According to Bloomberg News, 76 per cent of companies in the S&P 500 that have reported their earnings have topped analysts' expectations.

However, Thursday was marked by some high-profile disappointments.

Exxon Mobil Corp. reported a decline in oil and gas production, sending its shares down 4.2 per cent. Whole Foods Market Inc. fell 2.3 per cent after it lowered its annual sales forecast. And Yum Brands Inc. fell 4.9 per cent after reporting a slump in sales at its Chinese KFC and Pizza Hut locations.

Commodities also declined. Crude oil dipped below $100 (U.S.) a barrel in New York, despite ongoing turmoil in Russia and the Middle East. Gold, a traditional haven, fell to $1,282 an ounce, down nearly $13.

Overseas, Germany's DAX index fell 1.9 per cent and emerging market stocks suffered their worst setback since March, after Argentina defaulted on $29-billion of debt.

Michael Hartnett, chief investment strategist at Bank of America, expects global volatility will rise from here, but any serious dip is unlikely, considering how many observers expect one.

"Concerns of a correction in stocks…may be a little too widespread for The Big One," he said in a note.

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