Wall Street falls on disappointing data

Stocks closed lower on worries about a potentially toxic cocktail for financial markets, one where inflation remains stubbornly high but the economy’s growth flags. A sharp drop for Meta Platforms, one of Wall Street’s most influential stocks, also dragged the market lower. The S&P 500 fell 0.5% Thursday after paring an earlier drop of 1.6%. The Dow Jones Industrial Average lost 1%, and the Nasdaq composite gave back 0.6%.

Treasury yields climbed after the government reported that inflation remained hotter than forecast during the first three months of the year. The economy’s growth also slowed more than expected.

Google reports accelerating growth

Google’s corporate parent Alphabet Inc. has released a quarterly report showing it’s still reaping double-digit revenue gains from its digital advertising empire while sowing potentially lucrative new ground in artificial intelligence. The results for the first three months of the year provided the latest evidence that Google has regained its momentum after an unprecedented downturn in 2022 coming out of the pandemic.

Alphabet’s revenue climbed 15% from the same time a year ago while its profit soared by 57%. The performance surpassed the analyst estimates that steer investors’ expectations, driving up Alphabet’s shares by nearly 13% in extended trading.

Biden celebrates computer chip factories

President Joe Biden has arrived in New York state to celebrate a tech company’s plans to build a campus of computer chip factories made possible in part with government support. The initial phase of the Micron Technology project would open the first plant in 2028 and the second plant in 2029, with more time expected for the next two factories to be completed.

The Democratic president has a great economic story to tell voters a decade from now — less so in 2024. Staring down a rematch with Republican Donald Trump, Biden is asking voters to believe in a vision for the U.S. economy that’s still largely a promise.

Microsoft quarterly profit rises 20%

Microsoft has reported that its profit rose 20% for the January-March quarter as it tries to position itself as a leader in applying artificial intelligence technology to make workplaces more productive. The company reported quarterly profit of $21.93 billion, or $2.94 per share, beating Wall Street expectations for earnings of $2.82 a share.

The Redmond, Washington-based software maker posted revenue of $61.86 billion in the period, its third fiscal quarter, up 17% from the same period a year ago. Analysts polled by FactSet expected Microsoft to post revenue of $60.86 billion for the quarter.