US stocks closed lower on Thursday following the release of the latest GDP report, which revealed that US economic growth slowed to 1.6% in the first quarter of the year, falling short of expectations. The Dow dropped by 375 points, or 1%, while the S&P 500 and Nasdaq Composite also experienced declines of 0.5% and 0.6%, respectively. Investors reacted to the news by anticipating a delay in the first rate cut from the Federal Reserve.
The report highlighted a concerning trend of economic deceleration after a robust second half in 2023, with GDP growth rates of 4.9% and 3.4% in the third and fourth quarters of the previous year. Additionally, inflationary pressures persisted as indicated by the annualized GDP chain price, which surged from 1.6% to 3.1% in the first quarter of 2024.
