NEW YORK: Wall Street stocks fell sharply early Thursday following disappointing US economic data and as Facebook parent Meta tumbled after an earnings release.
The US economy grew 1.6 percent in the first quarter, much slower than expected as consumer spending and exports decelerated.
Shares of Facebook parent Meta sank 14 percent as worries about heavy spending planned on artificial intelligence countered strong results.
About 20 minutes into trading, the Dow Jones Industrial Average was down 1.5 percent at 37,886.75.
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The broad-based S&P 500 fell 1.3 percent to 5,004.53, while the tech-rich Nasdaq Composite Index slumped 1.9 percent to 15,419.08.
The US growth figures surprised analysts who have been reassured by robust US labor and retail sales data, prompting a resumption of selling that has taken hold of the market in April.
Rubeela Farooqi, chief US economist at High Frequency Economics, said the outlook ahead is uncertain.
While the labor market remains strong, a delay in Federal Reserve rate cuts to counter sticky inflation “could be headwinds for consumption and the growth trajectory over coming quarters,” she said.
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