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Stock futures fell sharply Thursday after the latest U.S. economic data showed a sharp slowdown in growth and pointed to persistent inflation.
The Dow Jones Industrials withered 644.09 points, or 1.7%, mid-morning Thursday to 37,816.23.
The S&P 500 index swooned 65.02 points, or 1.3%, to 5,006.81.
The NASDAQ Composite stumbled 247.87 points, or 1.6%, to 15,464.88.
U.S. gross domestic product expanded 1.6% in the first quarter, the Bureau of Economic Analysis said. Economists polled by Dow Jones forecast GDP growth would come in at 2.4%.
Following the GDP print, traders moved down expectations for an easing of Federal Reserve monetary policy. Traders now forecast just one interest rate cut this year,
The lackluster GDP added further pressure to an already-tense market contending with concerns over a pullback in growth among technology earnings.
Meta plunged 15% in premarket trading after the social media giant issued light revenue guidance for the second quarter. That would be the stock’s biggest one-day decline since October 2022. International Business Machines also fell 8% after missing consensus estimates for first-quarter revenue.
Meta’s report raises concern ahead of other big tech releases. Microsoft and Alphabet are slated to post earnings after the close Thursday.
Prices for the 10-year Treasury slumped yields to 4.72% from Wednesday’s 4.64%. Treasury prices and yields move in opposite directions.
Oil prices fell 51 cents to $82.30 U.S. a barrel.
Gold prices dulled $1.60 to $2,336.80 U.S. an ounce.
