Traders work when the New York Stock Exchange opens.
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Stocks fell sharply on Thursday after the latest U.S. economic data showed a sharp slowdown in economic growth and pointed to persistent inflation.
this Dow Jones Industrial Average Dragged down by the sharp decline in the stock market, it fell 689 points or 1.8%. caterpillar and International Business Machines Corporation.this S&P 500 Index dropped by 1.2%, Nasdaq Index down 1.4%.
The U.S. Bureau of Economic Analysis said U.S. gross domestic product grew 1.6% in the first quarter. Economists surveyed by Dow Jones forecast GDP growth of 2.4%.
The report showed that in addition to the sluggish growth rate this quarter, consumer prices rose by 3.4%, much higher than the 1.8% increase in the previous quarter. That has raised concerns about persistent inflation and questions whether the Federal Reserve will be able to cut interest rates anytime soon.
Chris Larkin said: “In the short term, these data do not appear to be a green light for bulls or bears… This uncertainty is unlikely to ease the pressure on the market experiencing its worst correction since last year.”, Managing Director of Trading and Investment at Morgan Stanley E*Trade.
After the GDP data was released, traders lowered their expectations for the Federal Reserve to ease monetary policy.Traders now expect just one rate cut this year, according to the agency CME Group Fed Watch Tool.
Tech stocks plunge
The sluggish gross domestic product (GDP) put further pressure on an already nervous market, which has been troubled by concerns about slowing growth in technology earnings.
Yuan The company plunged 13% in premarket trading after the social media giant issued second-quarter revenue guidance. This would be the stock’s biggest one-day drop since October 2022. international business machine The company also fell 8% after missing consensus first-quarter revenue estimates.
“Despite all the attention paid to generative artificial intelligence over the past nine months, Meta’s failure to meet first-quarter revenue growth forecasts raises questions about whether monetizing the technology will be as manageable as management guided traders It’s as easy as you think,” Thierry says Wizman, global FX and rates strategist at Macquarie.
Meta’s report drew attention ahead of other big tech releases. Microsoft and letter Earnings are scheduled to be released after the market close on Thursday.
10:46 AM: IBM and Caterpillar lead Dow lower
The Dow Jones plunged nearly 700 points in early trading Thursday, putting the blue-chip average on track for its worst day of the year.
International Business Machines Corporation and caterpillar Affected by profits, 30 stock indexes fell by more than 9% and 7% respectively. Both missed analysts’ revenue expectations for the quarter.
Big tech companies Microsoft and Amazon were the second worst performers, falling nearly 4% and 3% respectively.
More than two out of every three Dow stocks fell. Merck announced better-than-expected results this morning, and UnitedHealth bucked the trend and fell, with both gains exceeding 1% during the session.
— Alex Harling
10:22 AM: Meta shares set for worst day since October 2022
meta platform Shares plummeted 11.34% on Thursday. These losses gave the stock its worst day since October 27, 2022, when Meta fell 24.56%.
Meta’s shares fell after it issued weak revenue guidance that overshadowed better-than-expected first-quarter earnings. The sell-off intensified after Chief Executive Mark Zuckerberg made comments about the company’s long-term investments in artificial intelligence and virtual universes.
Meta Thursday stock price
10:04 AM: Declining stocks lead advancing stocks 10-1 on the NYSE
About 10 stocks fell on the New York Stock Exchange on Thursday as the latest GDP report and new technology earnings dampened investor sentiment. Overall, 2,386 NYSE-listed stocks declined and 210 advanced.
— Fred Ambert
9:52 AM: US GDP report is ‘worst of both worlds’, investors say
“This report is the worst of both worlds: economic growth is slowing and inflationary pressures persist,” wrote Chris Zaccarelli, director of investments at the Independent Advisor Alliance.
He continued: “The Fed wants to see inflation start to fall consistently, but the market wants to see economic growth and corporate profits increase, so if neither of those are moving in the right direction, then that’s going to be bad for the market. bad news. ” .
The data also raised risks for a personal consumption expenditures report scheduled for release on Friday. Investors hope the PCE report, the Fed’s preferred inflation gauge, will show improvement in price pressures after a report on consumer inflation in March beat expectations.
—Sarah Min
9:33 a.m.: Stocks fall as GDP data points to slowing economic growth
Stocks opened lower on Thursday, selling off after new gross domestic product data showed signs of slowing economic growth.
The Dow Jones Industrial Average fell 500 points, or 1.3%. The S&P 500 fell 1.4% and the Nasdaq fell 2.3%.
— Brian Evans
8:58 a.m.: 10-year Treasury yield jumps to highest level since November
The benchmark Treasury bond rate rose to 4.7% on Thursday.
While slowing economic growth may be a factor in prompting the Fed to cut interest rates, rising prices in the GDP report may lead the central bank to keep interest rates steady until inflation subsides.
— Jesse Pond
8:51 a.m.: Gross domestic production slows in first quarter
The U.S. Bureau of Economic Analysis said Thursday that U.S. gross domestic product slowed in the first quarter, weighing on stock futures ahead of the open.
GDP grew 1.6% in the first quarter, while economists polled by Dow Jones forecast growth of 2.4%.
— Brian Evans
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