Stocks took a hit on Thursday as lower-than-expected US GDP growth in the first quarter sparked concerns about the state of the economy. Tech stocks, including Meta, led the decline as investors were rattled by revenue forecasts.
The Nasdaq Composite fell around 1.3%, the S&P 500 lost 0.9%, and the Dow Jones Industrial Average slipped over 400 points in response to the disappointing GDP numbers. US GDP growth came in at 1.6%, below expectations of 2.5%, causing Treasury yields to rise, with the 10-year yield reaching its highest levels of the year at 4.73%.
Meta shares took a big hit, sinking up to 15% due to rising costs and a planned $10 billion investment in AI infrastructure. The concerns over tech stock earnings were reflected in other industry giants as well, with Microsoft, Alphabet, and Amazon all being down more than 3%.
Caterpillar, a major player in the industrial sector, saw its shares fall as much as 7% due to weakness in Europe and economic softening in the Asia-Pacific region. With the focus now shifting to the March reading of the Personal Consumption Expenditures index, a key inflation gauge favored by the Federal Reserve, set to be released on Friday, investors are anxiously waiting to see how the data will impact the market.
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