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The New York Dow Jones Stock Exchange index closed lower on Thursday (April 25) after the United States revealed gross domestic product (GDP) figures that expanded less than expected and inflation figures that rose in the first quarter of 2024. In in addition, the market is still under pressure due to the sale of stocks with high registered capital. After Meta Platform Company reveals disappointing results
The Dow Jones Industrial Average closed at 38,085.80 points, down 375.12 points or -0.98%, the S&P 500 Index closed at 5,048.42 points, down 23.21 points or -0.46%, and the Nasdaq Index closed at 15,619 points down, or 160,700. %.
The US Commerce Department revealed that GDP numbers for the first quarter of 2024 expanded just 1.6%, the lowest expansion in nearly 2 years and below analysts’ expectations of 2.4%.
In addition, the US Department of Commerce revealed that the Personal Consumption Expenditure (PCE) Price Index rose in 1Q/2024 by 3.4%, higher than in 4Q/2023 which rose by 1.8%. 3.7%, higher than in the 4th quarter of 2023 which increased by 2.0%.
The US Department of Commerce has released the PCE index for the first quarter of 2024 before releasing the PCE index for March today (April 26). detect changes in consumer behaviour. and covers the prices of goods and services more widely than the Consumer Price Index (CPI).
Chris Larkin, managing director of trading and investment at E*Trade, said the data suggested the US economy was slowing but inflation was rising. (Stagflation), which could cause the Fed to have difficulties in maintaining monetary policy. In terms of the short term trend We expect these economic numbers to cause uncertainty for the market.
A lower-than-expected GDP release and higher inflation numbers in Q1 led investors to lower their expectations for the Fed to cut interest rates this year indicating that investors expect the Fed to cut interest rates this year only one interest rate cut this year .
Communications services stocks fell the hardest among the S&P 500 stocks after Meta Platforms forecast second quarter 2024 sales in the range of $365-$390 billion. The median value of that forecast is $37.75 billion. That was below the average analyst estimate of $38.3 billion.
Meta’s disappointing earnings outlook has worried investors. Before revealing the financial results of other companies in the technology group from Microsoft and Alphabet Earnings are due to be released after the market closes.
International Business Machine (IBM) shares fell 8.2% after the company reported lower-than-expected revenue for the first quarter of 2024. IBM shares also fell after the company announced it would acquire Hachicorp (HashiCorp) , a cloud software maker
Stocks Caterpillar , a major construction equipment manufacturer in the United States, fell 7% after the company cut its 2Q24 sales forecast due to a slowdown in demand for construction equipment.
For other economic data revealed last night. The US Labor Department said initial jobless claims fell by 5,000 to 207,000 last week. and below analysts’ estimates of 214,000.
The National Association of Realtors (NAR) reported that the Index of Pending Home Sales increased 3.4% in March. while analysts were expecting an increase of just 0.4%.
In this regard, the index of home sales contracts pending sale It is a measure of the number of contracts for the purchase of second-hand homes that have been signed but have not yet closed. And it usually takes about 1-2 months from signing the contract to closing the sale.
Source: InfoQuest News Agency
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