Stock market today: US stocks tumble after Meta's reality check, soft GDP print
Stocks fell on Thursday after a sharply lower-than-expected reading on US GDP for the first quarter ratcheted up questions about the health of the US economy in the face of persistently high interest rates. Tech stocks led the way down as Meta's (META) revenue forecast rattled investors eyeing the next high-stakes megacap earnings.
The Nasdaq Composite (^IXIC) fell roughly 1.3%. The S&P 500 (^GSPC) lost 0.9%, while the Dow Jones Industrial Average (^DJI) slipped 1.3%, or over 400 points.
US GDP growth came in at a 1.6% annualized pace in the first quarter, falling well short of expectations of 2.5%. The reading comes amid ongoing debate about the path of the Federal Reserve's interest rate campaign.
Treasury yields rose after the GDP print, with the benchmark 10-year yield (^TNX) surging to its highest levels of the year. At last check, it was sitting around 4.73%.
Meanwhile, Meta shares sank as much as 15% as the market balked at rising costs at the Facebook and Instagram owner, which plans to spend up to $10 billion on AI infrastructure investments. Concerns grew about how long it will take for that spending to feed into revenue, pulling down tech stocks more broadly. Microsoft (MSFT), Alphabet (GOOGL, GOOG), and Amazon (AMZN) were all down more than 3%.
The Meta miss put a dent in hopes that results from the "Magnificent Seven" might juice a comeback in stocks, whose rally has lost momentum recently. It's also a reality check for Microsoft and Google, also burdened with high earnings growth and AI expectations, as they report after the bell Thursday.
Caterpillar (CAT) shares also sank as much as 7% after the heavy equipment maker said it continues to see weakness in Europe and economic softening in the Asia-Pacific, excluding China.
On the macroeconomic front, the spotlight will turn to the March reading of the Personal Consumption Expenditures index, the Fed's favored inflation gauge, set for release on Friday.
The Nasdaq Composite (^IXIC) fell roughly 1.3%. The S&P 500 (^GSPC) lost 0.9%, while the Dow Jones Industrial Average (^DJI) slipped 1.3%, or over 400 points.
US GDP growth came in at a 1.6% annualized pace in the first quarter, falling well short of expectations of 2.5%. The reading comes amid ongoing debate about the path of the Federal Reserve's interest rate campaign.
Treasury yields rose after the GDP print, with the benchmark 10-year yield (^TNX) surging to its highest levels of the year. At last check, it was sitting around 4.73%.
Meanwhile, Meta shares sank as much as 15% as the market balked at rising costs at the Facebook and Instagram owner, which plans to spend up to $10 billion on AI infrastructure investments. Concerns grew about how long it will take for that spending to feed into revenue, pulling down tech stocks more broadly. Microsoft (MSFT), Alphabet (GOOGL, GOOG), and Amazon (AMZN) were all down more than 3%.
The Meta miss put a dent in hopes that results from the "Magnificent Seven" might juice a comeback in stocks, whose rally has lost momentum recently. It's also a reality check for Microsoft and Google, also burdened with high earnings growth and AI expectations, as they report after the bell Thursday.
Caterpillar (CAT) shares also sank as much as 7% after the heavy equipment maker said it continues to see weakness in Europe and economic softening in the Asia-Pacific, excluding China.
On the macroeconomic front, the spotlight will turn to the March reading of the Personal Consumption Expenditures index, the Fed's favored inflation gauge, set for release on Friday.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
