The decline comes amid a collapse in Salesforce shares that weigh on the Dow Jones Industrial Average. Additionally, the market is analyzing data that shows the economy grew more slowly than expected in the first quarter.
The main stock indices of Wall Street fall this Thursday, May 30, after a salesforce crash and while the data showing that the economy grew more slowly than expected in the first quarter and support the bets on interest rate cuts by the Federal Reserve during year.
In that context, the Dow Jones Industrial Average give in 342.90 points, or a 0.9%, to 38,098.64 units; he S&P 500 misses 16.72 points, or a 0.3%, to 5,250.23 units; and the Nasdaq Composite falls off 88.08 points, or a 0.5%, to 16,832.50 units.
Salesforce It is the company with the greatest burden in the Dow Joneswith a 20% plunge after its profit and revenue forecast for the second quarter will be below estimates due to weak customer spending on its enterprise and cloud products.
Wall Street: the market analyzes economic data
The growth of United States Gross Domestic Product in the first trimester fell to 1.3%compared to the 1.6% expansion previously estimated, mainly due to the downward revisions to consumer spendingreported the Department of Commerce.
Awaiting Friday’s report on the April personal consumption spendingthe indicator inflation favorite of the Federal Reservethe growth of the first quarter of the Core personal consumption expenditure price index revised downward from 3.7% to 3.6%. Weekly jobless claims also rose more than expected.
The US Treasury bond returns fell after the report, while the Odds of an interest rate cut of at least 25 basis points in September rose to almost 52%from 48.7% prior to the data, according to the tool FedWatch of CME Group.
“A lower economic growth is not necessarily so negative, because we are still in a growth pattern, and the good news is that inflation measured by the PCE was revised downwards… that will help alleviate pressures in the bond market and could make the stocks stabilize,” he said Peter Cardillochief market economist at Spartan Capital Securities.
He S&P 500 fell to its lowest level in two weeks, while the Dow Jones dropped to a one-month low. However, small caps regained some ground, and the index Russel 2000 They rise 1.2% after falling 1.5% in the previous session.
Source: Ambito
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