Stocks fell early Thursday after investors were left disappointed by new U.S. economic data.
The economy grew more slowly in the first quarter than expected, at an annual rate of 1.6 percent, according to the latest gross domestic product (GDP) estimate from the Department of Commerce.
The report also showed that the Federal Reserve’s preferred measure of inflation, the core personal consumption expenditures (PCE) price index, increased by an annual rate of 3.7 percent in the first quarter, which could mena the Fed won’t move to cut interest rates.
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Meanwhile, Facebook and Instagram parent Meta Platforms saw shares drop more than 12 percent a day after investors were rattled by its quarterly earnings report, released after hours Wednesday. Strong results were overshadowed by weak sales forecasts and a promise from CEO Mark Zuckerberg to spend more on artificial intelligence, which will hit revenue. It left investors rattled and shares plunged in after-hour trading.
Two fellow tech giants and members of the so-called Magnificent Seven, Microsoft and Google parent Alphabet, will report earnings after the bell Thursday. Both companies, like Meta, have invested a lot into AI technology. Indeed, it’s a defining feature of the Magnificent Seven, which also includes Apple, Amazon, chip-maker Nvidia and Tesla.
Elon Musk’s EV maker reported dismal earnings earlier this week but shares have soared since.
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Another automaker, Ford, reported better than expected quarterly results Thursday and saw shares tick up in pre-market trading before dropping when the market opened.
Shares of pharmaceutical giant AstraZeneca shot up ahead of the market open, after reporting an 18 percent increase in product sales, and remained up on Thursday.
“AstraZeneca had a very strong start in 2024 with substantial total revenue growth of 19% in the first quarter,” said CEO Pascal Soriot in a statement.
The drug-making heavyweight is the eighth most valuable company in Europe, just behind oil company Shell.
In global markets Thursday, Japan’s benchmark Nikkei 225 slid 2.16 percent as the Bank of Japan’s two-day monetary policy meeting kicks off. The yen fell to its lowest level against the dollar in 34 years.
The U.K.’s FTSE 100 continued at record highs, boosted by strong earnings and takeover talks.
Australian mining giant BHP has proposed a £31 billion ($38.8 billion) takeover of rival Anglo American, which would create the world’s largest copper mining operation.
FTSE-listed Anglo American shares surged on the news.
Earnings highlights for the rest of the week:
- Thursday: Intel, T-Mobile
- Friday: Exxon Mobil, Chevron
Update, 4/25/24, 11:36 a.m. ET: This article was updated with additional information.
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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
