From Nasdaq: 2024-04-25 18:21:23

US stock indexes closed with moderate losses on Thursday, driven by weakness in technology stocks. Meta Platforms fell over 10% after weak Q2 revenue forecast. IBM saw an 8% drop in shares. Caterpillar fell over 6% with lower Q2 sales expectations. Losses were exacerbated by surging bond yields and revisions to key economic data.

Stocks rebounded Thursday after Nvidia’s 3% rally lifted chip stocks. Newmont surged over 12%, Carrier Global up over 9%, and Chipotle Mexican Grill up over 6%. Weekly jobless claims unexpectedly fell, US GDP revised lower to 1.6%, and Q1 core PCE price index rose to 3.7% from 2.0%.

US jobless claims unexpectedly dropped to a 2-month low at 207,000, while Q1 GDP was revised down to 1.6%. The Q1 core PCE price index rose to 3.7%. Overseas stock markets had mixed results, with Euro Stoxx 50 down 1.02%, China’s Shanghai up 0.27%, and Japan’s Nikkei down 2.16%.

Interest rates rose as the 10-year T-note yield climbed to 4.702%, a 5-3/4 month high. T-note prices declined due to inflation concerns and weak demand at Treasury auctions. European government bond yields also moved higher. ECB officials expressed differing views on rate cuts.

Notable stock movers included Meta Platforms (-10%), Textron (-9%), IBM (-8%), Bristol-Myers Squibb (-8%), and Southwest Airlines (-7%). Gainers included Newmont (+12%), Carrier Global (+9%), and Chipotle Mexican Grill (+6%). Nvidia led chip stocks higher. Earnings reports on 4/26 include AbbVie, Chevron, Roper Technologies, and more.



Read more at Nasdaq: Stocks Retreat as Persistent Inflation Dents Fed Rate-Cut Hopes