US stocks fall as weak GDP growth spreads rate-cut gloom
==========
US stocks closed lower on Thursday as data showed slower-than-expected US economic growth and persistent inflation, coupled with a sell-off in large cap stocks triggered by disappointing results from Meta Platforms. The US economy grew at its slowest pace in nearly two years in the first quarter while inflation accelerated, dampening hopes that the Federal Reserve would begin cutting interest rates this year. Disappointing results from Meta, whose shares plunged nearly 11%, also weighed on market sentiment. The Dow Jones Industrial Average fell 375.12 points, or 0.98%, to 38,085.80, the S&P 500 lost 23.21 points, or 0.46%, to 5,048.42 and the Nasdaq Composite lost 100.99 points, or 0.64%, to 15,611.76. Equities in the communications sector, dragged down by Meta, were the biggest losers in S&P 500. Other categories of stocks that lost ground are in healthcare, real estate, financials, consumer staples, and consumer discretionary sectors. Money markets are pricing in just about 36 basis points of rate cuts from the Fed this year, down from about 150 bps seen at the start of the year. International Business Machines fell 8% after it announced a US$6.4 billion deal to buy HashiCorp alongside its first-quarter results, in which revenue missed estimates. Southwest Airlines slid nearly 7% as the carrier slashed its projections for new aircraft deliveries from Boeing in 2024 for the third time. Caterpillar shed 7% after it cut second quarter sales forecasts as demand for its construction equipment eases from last year's boom. Rising gold prices helped Newmont, the world's largest bullion miner, to report first quarter profit that beat estimates. Its shares gained 12%. Declining issues outnumbered advancers by a 2.3-to-1 ratio on the NYSE. There were 72 new highs and 85 new lows on the NYSE. On the Nasdaq, 1,410 stocks rose and 2,819 fell as declining issues outnumbered advancers by a 2-to-1 ratio. The S&P 500 posted 14 new 52-week highs and seven new lows while the Nasdaq recorded 37 new highs and 203 new lows.
#Usgrowthslowdown #Ratecuthopesfade #Tightlabourmarket #Inflationsurprise #Disappointingearnings
https://www.thestar.com.my/business/2024/04/26/us-stocks-fall-as-weak-gdp-growth-spreads-rate-cut-gloom
The Star Online /
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2024-04-25 23:27:44
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2024-04-25 23:27:44Event JSON
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"content": "US stocks fall as weak GDP growth spreads rate-cut gloom\n==========\n\nUS stocks closed lower on Thursday as data showed slower-than-expected US economic growth and persistent inflation, coupled with a sell-off in large cap stocks triggered by disappointing results from Meta Platforms. The US economy grew at its slowest pace in nearly two years in the first quarter while inflation accelerated, dampening hopes that the Federal Reserve would begin cutting interest rates this year. Disappointing results from Meta, whose shares plunged nearly 11%, also weighed on market sentiment. The Dow Jones Industrial Average fell 375.12 points, or 0.98%, to 38,085.80, the S\u0026P 500 lost 23.21 points, or 0.46%, to 5,048.42 and the Nasdaq Composite lost 100.99 points, or 0.64%, to 15,611.76. Equities in the communications sector, dragged down by Meta, were the biggest losers in S\u0026P 500. Other categories of stocks that lost ground are in healthcare, real estate, financials, consumer staples, and consumer discretionary sectors. Money markets are pricing in just about 36 basis points of rate cuts from the Fed this year, down from about 150 bps seen at the start of the year. International Business Machines fell 8% after it announced a US$6.4 billion deal to buy HashiCorp alongside its first-quarter results, in which revenue missed estimates. Southwest Airlines slid nearly 7% as the carrier slashed its projections for new aircraft deliveries from Boeing in 2024 for the third time. Caterpillar shed 7% after it cut second quarter sales forecasts as demand for its construction equipment eases from last year's boom. Rising gold prices helped Newmont, the world's largest bullion miner, to report first quarter profit that beat estimates. Its shares gained 12%. Declining issues outnumbered advancers by a 2.3-to-1 ratio on the NYSE. There were 72 new highs and 85 new lows on the NYSE. On the Nasdaq, 1,410 stocks rose and 2,819 fell as declining issues outnumbered advancers by a 2-to-1 ratio. The S\u0026P 500 posted 14 new 52-week highs and seven new lows while the Nasdaq recorded 37 new highs and 203 new lows.\n\n#Usgrowthslowdown #Ratecuthopesfade #Tightlabourmarket #Inflationsurprise #Disappointingearnings\n\nhttps://www.thestar.com.my/business/2024/04/26/us-stocks-fall-as-weak-gdp-growth-spreads-rate-cut-gloom",
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