Economic Trials: Inflation Surge and GDP Dips Shake Wall Street
Wall Street indexes faced pressure following disappointing U.S. economic growth data and increased inflation figures. The GDP growth of 1.4% lagged behind the expected 3.0% rate, impacting stock futures. Inflation indicators pointed towards stronger activity, posing challenges for Federal Reserve rate decisions. Tech and energy stocks reflected market uncertainty.
Wall Street stocks appeared set for a decline on Friday as economic data revealed a sharper slowdown in U.S. growth than forecasted, alongside a spike in December inflation rates.
The Commerce Department reported a 1.4% GDP increase last quarter, significantly below the anticipated 3.0%, influenced by last year's extended government shutdown and reduced consumer spending.
In light of these developments, tech stocks stumbled due to valuation concerns, while energy stocks dipped amid geopolitical tensions. Investors also eyed judicial rulings and market analysts cited concerns over inflation and its impacts on Federal Reserve policies.
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