#Stockmarket today #WallStreet tumbles after discouraging data cocktail on the economy, as #Meta sinks
#US #stocks are tumbling Thursday after a dispiriting cocktail of data suggested both that the #economy’s growth is flagging and that #inflation remains stubbornly high. A sharp drop for Meta Platforms, one of Wall Street’s most influential stocks, also dragged the market lower, The entire #US stock market felt the pressure of another jump in #Treasury #yields following the disappointing data on the U.S. #economy The report shot directly at one of the main beliefs that sent the S&P 500 to multiple records this year: The #economy can avoid a deep recession and support strong profits for companies, even if high inflation takes a while to fully get under control,
#Meta the parent company of #Facebook and Instagram, dropped 11.5% even though it reported better profit for the latest quarter than analysts expected. Investors focused instead on big investments in artificial intelligence Meta pledged to make. AI has created a frenzy on Wall Street, but Meta is increasing its spending when it also gave a forecasted range for upcoming revenue whose midpoint fell below analysts’ expectations,
#Traders are now largely betting on the possibility of just one or maybe two cuts to interest rates this year by the Fed, if any, according to data from CME Group. They came into the year forecasting six or more after inflation cooled notably into the end of 2023. A string of reports this year showing inflation remaining hotter than forecast has crushed those expectations.
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Top #Fed officials themselves have said recently they could keep interest rates high for a while before getting full confidence inflation is heading down toward their target,
The #Fed has been keeping its main interest rate at the highest level since 2001. High interest rates slow the overall #economy and hurt prices for #investments