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Stocks tumbled Thursday after the latest U.S. economic data showed a sharp slowdown in growth and pointed to persistent inflation.
The Dow Jones Industrials dropped 375.19 points, or 1%, at Thursday’s close to 38,085.73, weighed down by steep declines in Caterpillar and IBM
The S&P 500 index flopped 23.21 points to 5,048.42.
The NASDAQ Composite fell 100.99 points to 15,611.76.
Meta plunged 10.5% after the social media giant issued light revenue guidance for the second quarter. That would be the stock’s biggest one-day decline since October 2022. International Business Machines also fell 8.3% after missing consensus estimates for first-quarter revenue.
Meta’s report raises concern ahead of other big tech releases. Microsoft and Alphabet are slated to post earnings after the close Thursday.
U.S. gross domestic product expanded 1.6% in the first quarter, the Bureau of Economic Analysis said. Economists polled by Dow Jones forecast GDP growth would come in at 2.4%.
Following the GDP print, traders moved down expectations for an easing of Federal Reserve monetary policy. Traders now forecast just one interest rate cut this year.
The lackluster GDP added further pressure to an already-tense market contending with concerns over a pullback in growth among technology earnings.
Prices for the 10-year Treasury slumped yields to 4.70% from Wednesday’s 4.64%. Treasury prices and yields move in opposite directions.
Oil prices climbed 95 cents to $83.76 U.S. a barrel.
Gold prices revived $5.90 to $2,344.30 U.S. an ounce.
