**Market Jitters: U.S. Stocks Sink After Tech Woes and Economic Data Loom**
The U.S. stock market took a tumble on Wednesday evening, led by a plunge in tech giant Meta Platforms and fears over upcoming economic data. Here’s a comprehensive breakdown:
Tech’s Woes Drag Market
Meta Platforms’ dismal quarterly results sent shockwaves through the market, with the social media behemoth losing a staggering 15% in extended trading. The company’s weak revenue forecast for the second quarter cast a pall over the broader tech sector.
Adding to the tech malaise, International Business Machines (IBM) also stumbled, falling 8% after missing revenue estimates for the first quarter.
Economic Data in Focus
Traders eagerly await the release of key economic data this week, starting with the first-quarter reading of the U.S. gross domestic product (GDP) on Thursday morning. Economists predict a 2.4% increase in GDP.
On Friday, the March personal consumption expenditures price index (PCEPI), which is the Federal Reserve’s preferred inflation measure, will be released. Forecasts indicate a monthly inflation increase of 0.3% and a year-over-year jump of 2.6%.
Fed’s Interest Rate Decisions
These economic data points will heavily influence the Federal Reserve’s path on interest rate policy. Futures trading suggests that the first rate cut could be imminent, potentially as early as September.
Analyst Optimism
Despite the market jitters, some analysts remain optimistic. Anastasia Amoroso, chief investment strategist at iCapital, believes that earnings look strong enough to support stocks.
“Even if the Fed does stand pat, I think this could be a supportive environment for stocks,” Amoroso said on CNBC’s “Closing Bell.
Earnings on the Radar
Several companies are set to report earnings before Thursday’s opening bell, including:
- Caterpillar
- Honeywell
- Northrop Grumman
- American Airlines
- Comcast
- Merck
- Bristol-Myers Squibb
Conclusion
The U.S. stock market is facing a test this week as investors digest tech turbulence and brace for crucial economic data. While some experts sound cautious, others see potential opportunities amidst the uncertainty.
