Investing.com–The S&P 500 closed lower Thursday, pressured by a sales-led dent in technology and cautious sentiment ahead of key inflation data due Friday.
At 4:00 PM ET (20:00 GMT), it fell 330 points, or 0.9%, fell 0.6% and fell 1.1%.
Salesforce leads technology lower
Salesforce (NYSE:) fell nearly 20%, remaining on track for its worst day since 2004, after reporting guidance that missed analyst estimates. The weaker results come amid a slump in the software sector that is unlikely to recover in the second half of the year.
“In our view, the slump is broad, not Salesforce specific, and we see no evidence of a recovery in the next two hours,” UBS said in a note on Wednesday after cutting its price target to $310 from $250 per share.
Big tech companies also took a breather with NVIDIA Corporation (NASDAQ:), Microsoft Corporation (NASDAQ:) and Alphabet Inc Class A (NASDAQ:), leading to a downtrend, but Apple Inc (NASDAQ:) bucked the trend.
GDP growth in the first quarter slows; looked up inflation data
The U.S. economy grew slower than previously estimated in the first quarter, as gross domestic product grew at an annual rate of 1.3% from January through March, lower than the previous estimate of 1.6% and significantly slower than the pace of 3.4% in the last three months. months of 2023.
The data came just ahead of comments from Federal Reserve President John Williams, who pushed back against fears of a rate cut and said the current level of monetary policy was keeping the economy in check.
Federal Reserve policymakers have lowered expectations for when they can cut interest rates, putting Friday’s data – the Federal Reserve’s favorite inflation gauge – firmly into focus.
Foot Locker but Kohl’s is faltering on the revenue front
Elsewhere, shares of Foot Locker (NYSE:) rose 15% after the retailer reaffirmed its 2024 guidance as its turnaround plan showed signs of progress.
The outsized move in Footlocker’s shares was also driven by “notes that same-store sales accelerated sequentially in the first quarter, even as the company began to reverse price cuts,” Evercore ISI said in a note Thursday.
Shares of Dollar General (NYSE:) fell 8% after the discount retailer posted strong first-quarter profits, even though customers spent less on average in the first quarter compared to the same period a year earlier.
Shares of Kohl (NYSE:) fell 23% after the department store chain reported an unexpected first-quarter loss and issued a 2025 profit warning.
American Eagle Outfitters (NYSE:) Shares fell more than 7% after the apparel retailer’s fiscal first-quarter sales were weaker than expected, even though sales were 5% above year-ago levels.
Energy stocks hold steady while oil prices fall on demand concerns
Energy stocks finished just above the flat, pressured by weakness in oil prices and a bigger-than-expected increase in weekly US and distillate supplies, fueling fears of weaker fuel demand.
Valero Energy Corporation (NYSE:), ConocoPhillips (NYSE:) and Marathon oil Corporation (NYSE:) was among the biggest decliners.
(Peter Nurse, Ambar Warrick contributed to this article.)
