Dow Jones falls over 500 points after first quarter US GDP numbers Growth is much lower than expected. Because inflation drags down consumer spending And it makes the Fed’s tendency to cut interest rates even more unclear.
Dow Jones falls over 500 points after first quarter US GDP numbers Growth is much lower than expected. Because inflation drags down consumer spending And it makes the Fed’s tendency to cut interest rates even more unclear.
Dow Jones index opens the marketcontinuously adjusted downward Most recently, at around 8:45 pm, it had fallen 515.17 points, or approximately 1.34%, to 37,945.75 points after the US economy in the first quarter of this year expanded below expected amid high inflation. until putting pressure on consumer spending
The US Commerce Department has released estimates of gross domestic product (GDP) for the first quarter of this year that the US economy expanded just 1.6%, or below analysts’ estimates of 2.4%, affected by slowing consumer spending. This is considered to be much slower growth compared to the 4th quarter of last year, which expanded by 3.4%.
In addition, the Ministry of Commerce revealed that the Consumer Price Index (CPI) rebounded in the first quarter to 3.4%, or much higher than the 1.8% quarter of the previous year, causing investors to worry about rising inflation. which will be a causative factorFederal Reserve (Fed) Keeping interest rates high for longer than expected
At the same time, market trading was also affected by the fall in the company’s stocks. Meta Platforms, Inc. (Meta) which is the parent company of Facebook and Instagram
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Meta’s share price fell more than 15% in pre-US trading on April 25 after investors were disappointed by the company’s second quarter sales forecast, which the company expected to be in the range of $3.65-$39 billion This was below the average analyst estimate of $38.3 billion.
The release of Meta’s earnings report raised concerns among investors ahead of the release of other companies’ earnings. In the technology sector, Microsoft Corp. (Microshift) and Alphabet Inc. (Alphabet) is scheduled to release earnings after the market closes today.
In addition, investors are also keeping an eye on the Personal Consumption Expenditure (PCE) price index on Friday, April 26, which analysts predict will be the overall PCE index that includes food and energy categories. increased by 2.6% in March year on year from 2.5% in February.
On a monthly basis, the overall PCE index is expected to increase by 0.3% in March from 0.3% in February.
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