KEY TAKEAWAYS
- U.S. equities sank at midday Thursday, April 25, 2024 as a report showed U.S. economic growth was lower than anticipated in the first quarter, while inflation accelerated.
- Meta Platforms shares dragged on the tech sector amid worries about the social media giant’s spending on artificial intelligence.
- Foot traffic rose at Chipotle Mexican Grill, boosting sales and lifting shares.
U.S. equities plunged at midday Thursday as a report on gross domestic product (GDP) for the first quarter showed U.S. economic growth was slower than anticipated while inflation accelerated. The Dow and Nasdaq tumbled more than 1%, while the S&P 500 was also lower.
Meta Platforms (META) shares were a drag on the tech sector amid concerns about the social media giant’s spending on artificial intelligence (AI) after the company reported its latest results Wednesday.
Shares of IBM (IBM) also hurt the sector as the tech hardware, software, and consulting firm missed revenue estimates and announced it was paying $6.4 billion for multicloud infrastructure automation provider HashiCorp (HCP). HashiCorp shares climbed.
Textron (TXT) shares slumped after the defense and aerospace industry contractor said it was slashing jobs as the cancelation of U.S. Army programs and slowing commercial demand hurt sales.
Merck (MRK) shares rose as the pharmaceutical firm beat profit and sales estimates, as well as raised and narrowed its outlook on strong demand for its cancer-fighting treatments.
Shares of Newmont Corporation (NEM) jumped after the miner posted better-than-expected results as it benefited from gold production from its acquisition of Australia’s Newcrest.
Chipotle Mexican Grill (CMG) shares advanced with the food chain reporting a rise in foot traffic at its locations.
Oil futures fell and gold prices gained. The yield on the 10-year Treasury note was higher. The U.S. dollar lost ground to the euro and pound, but was up on the yen. Most major cryptocurrencies traded lower.
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