Nasdaq falls more than 2% due to US GDP and Meta collapse

The world’s largest economy is slowing while inflation persists and Facebook’s owner is disappointed with its second-quarter guidance.

Wall Street is turning red. The Nasdaq fell more than 2% and the S&P 500 saw a 5,000-point threat, losing 1.3%. The Dow Jones index, in turn, fell below 38,000 points, losing another 1.3%.

Investors opt to sell after news releases at the macroeconomic and business level. On the one hand, today it became known that US GDP grew by 1.6% in the first quarter, which is significantly lower than the 2.4% expected by analysts. While this could bring the Federal Reserve’s first rate cut closer, the market is watching with concern as the economy slows but inflation persists.

Added to this is the collapse of Facebook’s parent company Meta, whose shares fell nearly 14% after it gave a worse-than-expected earnings forecast for the second quarter. IBM, which also reported earnings yesterday, fell 8% as its March earnings fell below expectations.

Among major tech companies, Microsoft was the hardest hit, falling 4%, while Amazon and Alphabet saw shares decline more than 3%. On the other hand, Nvidia and Apple are showing moderate progress.

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