Stocks tumbled on Thursday, deepening losses racked up earlier in the week.
The personal consumption expenditures price index will be published on Friday morning.
Shares of Salesforce dragged the Dow lower after it posted its first revenue miss in nearly 20 years.
US stocks continued a painful slide lower 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.
Not even a brief hiccup in the data feeds that update the S&P 500 and the Dow Jones Industrial Average could stave off a decline in the session. Around 10:40 a.m. ET, both indexes became stuck on several websites, though individual stock prices continued to update normally.
The Dow ultimately finished the day lower by 330 points, marking its third straight daily decline, and a fourth in five sessions. Shares of Salesforce dragged the Dow as the stock dropped 20% after it reported its first revenue miss in almost 20 years. The S&P 500 dropped about 0.6%.
The Bureau of Economic Analysis will publish the personal consumption expenditures price index on Friday, with economists expecting the Federal Reserve’s favorite inflation reading to show prices ticked up 2.7% year-over-year in April.
Bond yields tumbled after GDP data for the first quarter was revised down and jobless claims edged up, pointing to a mix of factors that could give the Fed the ammunition it needs to start cutting rates at some point this year. The yield on the 10-year Treasury dropped 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 yield rates jumped earlier this week,” David Russell, Global Head of Market Strategy at TradeStation.
Yet, economists at Barclays noted that the revision doesn’t acknowledge more under-the-radar factors that hint at continued strength.
“As with the advance estimate, we believe that top-line Q1 GDP growth substantially understates underlying growth,” the bank said in a note, adding that the Fed will probably focus on metrics like private domestic final purchases, which gauges demand from consumers and businesses.
Here’s where US indexes stood at the 4 p.m. closing bell on Thursday:
Here’s what else happened today:
In commodities, bonds, and crypto:
West Texas Intermediate crude oil slumped 1.6% to $77.95 a barrel. Brent crude, the international benchmark, dropped 02% to $81.98 a barrel.
Gold ticked lower to $2,362 an ounce.
The 10-year Treasury yield dropped seven basis points to 4.554%.
Bitcoin rose 1.9% to $68,712.08.
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