Dow Jones immediately dropped 500 points after the US GDP growth was lower than expected by just 1.6%.

Dow Jones falls over 500 points after first quarter US GDP numbers Growth is much lower than expected. Cause of inflation dragging down consumer spending And it makes the trend of the Fed cutting interest rates even more blurred.

Dow Jones index opens the marketcontinuously adjusted downward Most recently at around 8:45 p.m., it had plummeted by 515.17 points, or approximately 1.34%, to 37,945.75 points after the US economy in the first quarter of this year expanded lower than expected amid high inflation. until putting pressure on consumer spending

The US Department of Commerce has released estimates of gross domestic product (GDP) for the first quarter of this year that The US economy expanded only 1.6%, or below analysts’ expectations of 2.4%. It has been affected by the slowdown in consumer spending. This is considered a much slower growth compared to the 4th quarter of last year, which expanded by 3.4%.

In addition, the Ministry of Commerce revealed that The Consumer Price Index (CPI) in the first quarter rebounded 3.4%, or much higher than the previous year’s 4th quarter at 1.8%. This makes investors worried about rising inflation. which will be a factor causingFederal Reserve (Fed) Holding interest rates high for longer than expected

At the same time, market trading was also affected by the collapse of company stocks. Meta Platforms, Inc. (Meta) which is the parent company of Facebook and Instagram

Meta’s share price fell more than 15% in pre-U.S. trading on April 25 after investors were disappointed by the company’s second-quarter sales forecast, which the company expected to be in the range of 3.65-. $39 billion This was lower than the average analyst estimate of $38.3 billion.

The release of Meta’s earnings report raised concerns among investors ahead of other companies’ earnings releases. In the technology group, Microsoft Corp. (Microsift) and Alphabet Inc. (Alphabet) are scheduled to release earnings after the market closes today.

Investors will also keep an eye on the Personal Consumption Expenditures (PCE) price index on Friday, April 26. Analysts predict that the general PCE index that includes food and energy categories will will increase 2.6% in March year-on-year from 2.5% in February.

On a monthly basis, it is expected that the general PCE index increased 0.3% in March from 0.3% in February.