Stocks fell on Thursday as fresh estimates on first-quarter GDP disappointed Wall Street. The Dow Jones Industrial Average dropped over 375 points, while the S&P 500 Index and Nasdaq Composite declined about 0.5% and 0.6%, respectively.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In Economic News:
The U.S. economy grew at a weaker-than-expected pace in the first-quarter, the Commerce Department reported on Thursday, with gross domestic product (GDP) rising by a seasonally and inflationarily adjusted annualized pace of 1.6%. That growth was below estimates and followed a 3.4% gain in the previous quarter.
"This report was the worst of both worlds: economic growth is slowing and inflationary pressures are persisting," wrote Chris Zaccarelli, investment chief at Independent Advisor Alliance, quoted in CNBC. "The Fed wants to see inflation start coming down in a persistent manner, but the market wants to see economic growth and corporate profits increasing, so if neither are headed in the right direction then that's going to be bad news for markets."
On the Earnings Front:
Meta Platforms
"Meta's virtual ownership of the social graph, strong competitive moat, and focus on the user experience position it to become an enduring blue-chip company built for the long term," JPMorgan analysts wrote in a note Thursday, while also decreasing their price target to $480 from $535.
IBM
"HashiCorp has a proven track record of enabling clients to manage the complexity of today's infrastructure and application sprawl. Combining IBM's portfolio and expertise with HashiCorp's capabilities and talent will create a comprehensive hybrid cloud platform designed for the AI era," said IBM CEO Arvind Krishna in a statement.
In the News:
Honda
"In North America, following the initiative to establish our EV production system capability in the U.S., we will now begin formal discussions toward the establishment of a comprehensive EV value chain here in Canada, with the support of the governments of Canada and Ontario," CEO Toshihiro Mibe said in a statement. "We will strengthen our EV supply system and capability with an eye toward a future increase in EV demand in North America."
For Friday:
Market participants will react to earnings from companies including Microsoft