NEW YORK, April 25 — Wall Street stocks fell sharply early today following disappointing US economic data and as Facebook parent Meta tumbled after an earnings release.
The US economy grew 1.6 per cent in the first quarter, much slower than expected as consumer spending and exports decelerated.
Shares of Facebook parent Meta sank 14 per cent as worries about heavy spending planned on artificial intelligence countered strong results.
About 20 minutes into trading, the Dow Jones Industrial Average was down 1.5 per cent at 37,886.75.
The broad-based S&P 500 fell 1.3 per cent to 5,004.53, while the tech-rich Nasdaq Composite Index slumped 1.9 per cent to 15,419.08.
The US growth figures surprised analysts who have been reassured by robust US labour and retail sales data, prompting a resumption of selling that has taken hold of the market in April.
Rubeela Farooqi, chief US economist at High Frequency Economics, said the outlook ahead is uncertain.
While the labour market remains strong, a delay in Federal Reserve rate cuts to counter sticky inflation “could be headwinds for consumption and the growth trajectory over coming quarters,” she said. — AFP
