Analysts said the Dow Jones index sank today (25 April 2024) more than 500 points after the US economy expanded less than expected in the first quarter of 2024 amid high inflation Mar 8: 33 pm Thai time, the average index The Dow Jones industrial average was at 37,955.09 points, down 505.83 points or 1.32%.
In addition, the market was also weighed down by the rebound in US government bond yields. The yield on 10-year US Treasury bonds rose above 4.7% today, hitting the highest level in more than five months.
The US Department of Commerce released its first estimate for gross domestic product (GDP) for the first quarter of 2024 today, saying that the US economy expanded 1.6% in the quarter. Below analysts’ expectations of 2.4%.
Slowdown in consumer spending weighed on US economic expansion in 2023 In 2023, the US economy expanded 2.2%, 2.1%, 4.9% and 3.4% in 1Q20, 2Q24, 3 and 4 respectively
In addition, the Ministry of Commerce revealed that the Consumer Price Index (CPI) returned to 3.4% in 1Q2024, higher than the level of 1.8% in 4Q2023, causing investors to worry about high inflation. This will cause the US Federal Reserve (Fed) to keep interest rates high longer than expected.
At the same time, the fall in the shares of Meta Platforms Inc., the main company of Facebook and Instagram affected market trading.
Meta’s stock price fell more than 15% after investors were disappointed with sales forecasts for the second quarter of 2024.
The release of Meta’s earnings report raised concerns among investors ahead of other companies’ earnings releases. In the technology sector, Microsoft Corp. and Alphabet Inc. expected to release earnings after the market closes today.
Investors will be watching the Personal Consumption Expenditure (PCE) price index tomorrow.
Meanwhile, analysts expect the Core PCE Index, which includes the food and energy sectors, rose 2.6% in March year-on-year from 2.5% in February.
On a monthly basis, the general PCE index is expected to increase 0.3% in March from 0.3% in February.
Regarding the Core PCE Index (Core PCE), which does not include the food and energy sectors. It is expected to increase 2.6% in March year on year from 2.8% in February.
On a monthly basis, the core PCE index is expected to increase 0.3% in March from 0.3% in February.
2024-04-25 14:23:31
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