The main U.S. stock indices fell on Thursday on weak statistical data. The country's GDP growth in the first quarter did not meet expectations, amounting to 1.6% year-on-year against the forecasted 2.5%. The results are well below the fourth-quarter figure of 3.4%.
According to Investing.com, at the close, the Dow Jones lost 0.98%, the S&P 500 lost 0.46% and the Nasdaq lost 0.64%. At one point, losses on the floors exceeded 2%.
Despite the weak economic growth, the Fed is unlikely to start cutting rates in June - this is hindered by stable inflation, the fight against which is a priority for the regulator. However, given the dynamics of GDP, such a step is likely in the fall, the portal notes. On Friday, data on the Fed's preferred inflation indicator - the price index of personal consumption expenditures (PCE) - will be released, which may affect its decision.
Markets have lowered their expectations for a rate cut this year - if in January it was expected to decrease by 150 basis points, now these figures have fallen to 42 b. p., the portal quotes LSEG data.