Traders work when the New York Stock Exchange opens.
Johannes Eisel AFP |
Stocks fell sharply on Thursday after the latest US economic data showed a sharp slowdown in economic growth and pointed to persistent inflation.
this Dow Jones Industrial Average It fell by 689 points or 1.8% due to a sharp fall in the stock market. caterpillar And International Business Machines Corporation.this S&P 500 Index decreased by 1.2%, Nasdaq Composite Index 1.4% less.
The US Bureau of Economic Analysis said US gross domestic product rose 1.6% in the first quarter. Economists polled by Dow Jones had predicted GDP growth of 2.4%.
In addition to the slower growth rate in the quarter, consumer prices rose 3.4%, much higher than the 1.8% increase in the previous quarter, the report showed. This has raised concerns about persistent inflation and questions about 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 pressure on markets facing the worst correction since last year.”, Managing Director of Trading and Investments at Morgan Stanley e*Trade.
Following the release of the GDP data, 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’s CME FedWatch tool.
Tech stocks plunge
Slower gross domestic product (GDP) has put further pressure on already nervous markets, which are reeling from concerns about slowing technology income growth.
Yuan Pre-market trading fell 13% after the social media giant announced light earnings guidance for the second quarter. This would be the stock’s biggest one-day decline since October 2022. International business machine It fell by 8% even after missing the consensus estimate. First quarter revenue.
“Despite all the attention paid to generative AI over the past nine months, Meta’s failure to deliver on its first-quarter revenue growth forecast raises questions about whether the technology will be as monetizable as management leads traders to believe. simple,” Thierry said Wiseman, rates strategist at Global FX and Macquarie.
Mater reports have attracted attention before other major technology releases. Microsoft And the letter Earnings are due after market close on Thursday.
10:46 AM: IBM and Caterpillar lead Dow lower
The Dow Jones Industrial Average fell 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 Influenced by earnings, 30 stock indexes fell 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, down about 4% and 3%, respectively.
More than two out of every three Dow stocks fell. Merck announced better-than-expected results this morning, and United Health bucked the trend with both gains exceeding 1% during the session.
— Alex Hurling
10:22 AM: Meta shares set for worst day since October 2022
Meta platform Shares fell 11.34% on Thursday. These losses gave the stock its worst day since October 27, 2022, when the meta fell 24.56%.
Shares of Meta fell after it issued weak revenue guidance that beat its better-than-expected first-quarter earnings. The sell-off intensified after CEO Mark Zuckerberg made comments about the company’s long-term investments in artificial intelligence and the virtual universe.
Meta Thursday stock price
10:04 AM: Declining stocks outpace advancing stocks 10-1 on 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 ‘worst of both worlds’, say investors
A disappointing US GDP data could spell trouble for the stock market if inflation remains high, an investor said.
“This report is the worst of both worlds: economic growth is slowing and inflationary pressures continue,” wrote Chris Zaccarelli, director of investments at the Alliance of Independent Advisors.
He continued: “The Fed wants to see inflation start to come down consistently, but the market wants to see economic growth and corporate profits rise, so if neither of those go the right way, it’s going to be bad news for the market. “
The data also raised risks for the private spending report scheduled for release on Friday. Investors expect the PCE report, the Fed’s preferred measure of inflation, to show an improvement in inflationary pressures. March consumer inflation report was hotter than expected.
— Sarah Minn
9:33 am: Stocks fall as GDP data points to slowing economic growth
Stocks edged lower on Thursday, paring a selloff 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 Composite fell 2.3%.
– Brian Evans
8:58 am: 10-year Treasury yield jumps to highest level since November
The benchmark Treasury bond yield rose to 4.7% on Thursday.
While slowing economic growth could be one factor pushing the Fed to cut interest rates, a price increase in the GDP report could lead the central bank to keep rates steady until inflation eases.
— Jesse Pond
8:51 AM: First-quarter GDP slows
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 had forecast a 2.4% increase.
– Brian Evans
Tags: Dow falls points inflation growth worries track biggest drop year Live Update
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