Dow closes lower by more than 370 points as inflation, growth worries resurface: Live updates

The stock market took a downturn on Thursday, driven by disappointing economic data that highlighted slowing growth and persistent inflation.

The Gross Domestic Product (GDP) report indicated a 1.6% expansion in the first quarter, falling short of the 2.4% growth anticipated by economists.

The Personal Consumption Expenditures Price Index, a key inflation measure, rose by 3.4%, well above the previous quarter’s 1.8% increase.

These findings raised concerns about a potential “stagflationary” environment, characterized by both slowing economic growth and rising inflation.

Such a situation could pose a challenge for policymakers and weigh heavily on the market.

The Nasdaq Composite, heavily influenced by technology stocks, experienced a 0.64% decline, while the Dow Jones Industrial Average shed 0.98% of its value.

Companies such as Meta Platforms, International Business Machines, and Caterpillar suffered significant losses, primarily due to revenue shortfalls and earnings misses.

The GDP data also caused investors to readjust their expectations for Federal Reserve monetary policy, with fewer anticipating an interest rate cut this year.

This shift fueled further uncertainty and selling pressure in the market.

Additionally, earnings reports from technology giants, such as Meta Platforms, disappointed investors, adding to the market’s downward momentum.

Meta missed revenue targets for the second quarter and emphasized long-term investments in artificial intelligence and the metaverse, which raised concerns about monetization and profitability challenges in these areas.

Overall, the market’s selloff reflected concerns over the economic outlook, inflation dynamics, and the Federal Reserve’s path forward.

The disappointing GDP report and weak earnings from tech companies exacerbated these concerns, leading to a gloomy sentiment among investors.