Wall Street stocks fall as weak GDP growth spreads rate-cut gloom

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Wall Street stocks closed lower on Thursday as markets were stunned by data showing slower-than-expected U.S. economic growth and persistent inflation, coupled with a sell-off in large cap stocks triggered by disappointing results from Meta Platforms .

A trader works on the trading floor at the New York Stock Exchange in New York City, U.S., April 4, 2024. REUTERS/Andrew Kelly/File PhotoNEW YORK, April 25 - Wall Street stocks closed lower on Thursday as markets were stunned by data showing slower-than-expected U.S. economic growth and persistent inflation, coupled with a sell-off in large cap stocks triggered by disappointing results from Meta Platformsthat the U.S.

"The GDP numbers definitely puts a ding in the paradigm that markets were hanging onto for equities in terms of high growth; and if you don't have high growth that will translate to lower-than-expected earnings," said James St. Aubin, chief investment officer at Sierra Mutual Funds in California.Money markets are pricing in just about 36 basis points of rate cuts from the Fed this year, down from about 150 bps seen at the start of the year, according to LSEG data.

"The double whammy was also the inflation number that came in stronger than expected so there wasn't really a silver lining in that report; it's still positive in absolute terms but relative to high expectations it was disappointing," St. Aubin added.lost ground after it cut second quarter sales forecasts as demand for its construction equipment eases from last year's boom.

Chibuike reports on Breaking News, with a focus on finance and markets. He previously covered U.S. private equity firms, and holds master's degrees in journalism from New York University and Edinburgh Napier University.The International Monetary Fund and Ecuadorean authorities have reached a staff-level agreement to underpin a four-year, $4 billion extended fund facility , the IMF said in a statement on Thursday.

 

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