(Reuters) – U.S. indexes fell sharply, weighed down by growth stocks after Meta Platforms’ dismal quarterly results, while signs of persistent inflation dampened hopes of an interest rate cut by the Federal Reserve in a short time.
At around 4.10pm, the Dow Jones Industrial Average was down 658.62 points, or 1.71%, at 37,802.30, the S&P 500 was down 74.52 points, or -1.47%, at 4,997.11, and the Nasdaq Composite was down 283.60 points, or 1.80%, at 15,429.15.
Meta tumbled 14.1% after Facebook’s parent company forecast higher-than-expected spending and lower-than-expected revenue.
Social media companies Snap and Pinterest lost 4.4% and 4.5%, respectively.
Alphabet, Amazon.com and Microsoft are also down between 3.6% and 4.5%.
International Business Machines fell 9.3% after the company said it would buy Hashicorp in a deal valued at $6.4 billion, and after first-quarter revenue missed estimates.
Southwest Airlines fell 10.3% after cutting its forecast for Boeing’s 2024 new plane deliveries for the third time, saying it sought cost-cutting to ease the backlash.
Caterpillar fell 8.3% on company expectations of a drop in second-quarter sales due to reduced demand for construction equipment after last year’s boom.
(Translated by Camilla Borri, editing by Francesca Piscioneri)
