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Stock prices tumbled on Thursday, extending losses earlier this week.
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The price index for personal consumption expenditure will be published on Friday morning.
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Shares of Salesforce pushed down the Dow Jones after it posted its first revenue loss in nearly two decades.
U.S. stocks fell painfully further on Thursday as traders turned their attention to upcoming inflation data that could set the tone for the market as it heads into the summer months.
Even a brief hiccup in the data feeds updating the S&P 500 and the Dow Jones Industrial Average couldn’t prevent a decline during the session. Around 10:40 a.m. ET, both indexes were stuck on different websites, although individual stock prices continued to update normally.
The Dow Jones ended the day down 330 points, marking its third straight daily decline and a fourth in five sessions. Shares of Salesforce dragged the Dow Jones as the stock fell 20% after reporting a revenue loss for the first time in nearly two decades. The S&P 500 fell about 0.6%.
The Bureau of Economic Analysis will release the personal consumer expenditures price index on Friday, with economists expecting the Federal Reserve’s favorite inflation reading to show prices rose 2.7% year over year in April.
Bond yields fell after first-quarter GDP data was revised downwards and unemployment claims rose. This points to a combination of factors that could give the Fed the ammunition it needs to start cutting rates sometime this year. The yield on ten-year government bonds fell by seven basis points to 4.554%.
“These numbers all point to slower growth and slower inflation. It keeps hopes of a rate cut alive and gives investors relief after interest rates rose earlier this week,” said David Russell, Global Head of Market Strategy at TradeStation.
Still, economists at Barclays noted the revision doesn’t take into account more under-the-radar factors that point to continued strength.
“As with the preliminary estimate, we believe that first-quarter GDP growth materially underestimates underlying growth,” the bank said in a note, adding that the Fed will likely focus on measures such as private domestic final purchases, that measure consumer and consumer demand. companies.
Here’s where the US indexes stood at 4pm on Thursday:
Here’s what else happened today:
In commodities, bonds and crypto:
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West Texas Intermediate crude fell 1.6% to $77.95 a barrel. Brent crude, the international benchmark, fell 02% to $81.98 per barrel.
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Gold fell to $2,362 an ounce.
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The yield on ten-year government bonds fell by seven basis points to 4.554%.
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Bitcoin rose 1.9% to $68,712.08.
Read the original article on Business Insider
