Investing.com – U.S. stocks fell on Thursday after disappointing quarterly growth in the U.S. economy, fueling concerns about higher inflation and tight monetary policy.
At 09:35 ET (1335 GMT), the drop was 295 points, or 0.8%, down 11 points, or 0.2%, and down 30 points, or 0.2%.
GDP growth slowed in the first quarter
The U.S. economy grew more slowly than previously expected in the first quarter as gross domestic product grew at an annual rate of 1.3% from January to March, below the preliminary estimate of 1.6% and markedly slower than the 3.4% pace. in the last three quarters. months of 2023.
While the reading could indicate interest rate cuts by the Federal Reserve in the near future, the inflation figure in the first-quarter data was revised to 3.3% from 3.4%, still the strongest quarterly increase in price pressures in a year.
Federal Reserve policymakers pushed back expectations for when they might move to cut interest rates, with Friday’s data – the Fed’s preferred gauge of inflation – front and center.
Weak Salesforce earnings hit sentiment
Weak earnings from Salesforce (NYSE:) also weighed on sentiment, with shares of the software company falling 17% as its forecasts missed estimates.
In the other place, foot locker Dollar General (NYSE:) shares rose more than 25% after the retailer reaffirmed its 2024 guidance as its turnaround plan showed signs of progress. Dollar General (NYSE:) shares rose 0.5% after The discount retailer reported strong first-quarter profits on demand for cash-stressed customers.
Kohl’s (NYSE:) shares fell 24% after the department store chain reported a surprise first-quarter loss and issued a 2025 profit warning. American Eagle Outfitters Shares (NYSE:) fell 9% after the apparel retailer’s fiscal first-quarter sales came in weaker than expected, even as revenue was 5% higher than a year ago.
Dell Technologies (NYSE:), Costco (NASDAQ:), Gap (NYSE:) and Nordstrom (NYSE:) are expected to report after the bell.
Oil falls amid weak US economic growth data
Crude oil prices fell on Thursday after weak US economic growth data outweighed optimism about a larger-than-expected draw in US inventories.
By 09:35 ET, U.S. crude oil (WTI) futures were trading 1% lower at $78.42 a barrel, while the Brent contract fell 1% to $82.62 a barrel.
U.S. data showed on Wednesday that U.S. oil inventories fell by nearly 6.5 million barrels last week, far more than the 1.9 million barrel decline expected.
The data typically foreshadows similar readings in official data to be released later on Thursday. The over-the-top rally suggested U.S. fuel demand is rising as the travel-heavy summer season many call Memorial Day weekend begins.
(Ambar Warrick contributed to this article.)