The US economy grew at a slightly less rapid pace than economists had expected in the third quarter.

The Bureau of Economic Analysis's advance estimate of third quarter US gross domestic product (GDP) showed the economy grew at an annualized pace of 2.8% during the period, below the 2.9% growth expected by economists surveyed by Bloomberg. The reading came in lower than the 3% growth seen in the second quarter.

Meanwhile, the "core" Personal Consumption Expenditures index, which excludes the volatile food and energy categories, grew by 2.2% in the second quarter, above estimates of 2.1% but significantly lower than the 2.8% gain in the prior quarter.

The data's release comes as investors try to gauge how much more the Federal Reserve will cut interest rates in 2024. Entering Wednesday's release, markets are pricing in a 99% chance the Fed cuts rates by 25 basis points at its meeting next week, per the CME FedWatch tool.

Wednesday's GDP print showed the Fed has begun its interest rate cutting cycle while economic growth remains on solid footing and inflation is falling, a bullish backdrop for stocks according to strategists.

Another large check on the health of the economy looms Friday with the October jobs report. Consensus expects the US economy added 110,000 jobs in October, a move lower from the 254,000 seen in September.

Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.

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