Wall Street Split on Impact of ‘Double-Edged Sword’ Data: Market Summary

Stocks on Wall Street took a hit as traders reacted to the latest economic data indicating a slowdown in momentum. The report showed that the US economy grew at a softer pace, with both spending and inflation being marked down. This economic cooling could potentially give the US central bank room to cut interest rates this year, but it also raises concerns about consumption and corporate profits.

Tech shares were particularly affected, with Salesforce Inc. experiencing its biggest drop in almost two decades after a weak outlook. Dell Technologies Inc. is set to report earnings after the close, while Kohl’s Corp. saw a significant plunge of over 25% after slashing its guidance for the full year.

Treasury two-year yields dropped, indicating sensitivity to potential Fed moves, while the dollar also retreated. Gross domestic product rose 1.3% in the first quarter, below previous estimates, and personal spending advanced 2%, lower than expected.

Despite the economic challenges, some companies managed to shine. Dollar General Inc. reported higher-than-expected sales, Best Buy Co. saw better-than-expected profitability, and Foot Locker Inc. experienced a surge in shares due to a successful turnaround plan.

Overall, the market remains cautious as investors await further economic data, including the core-PCE update and the upcoming jobs report. The focus continues to be on inflation, interest rates, and corporate performance as the economy navigates through uncertain times.