Finance

Strong quarterly performance from industrial heavyweights, notably Caterpillar, helped propel the Dow Jones higher following a 22% jump in first-quarter revenue. This strength contrasted with a sharp sell-off in the technology sector, where Meta Platforms slumped nearly 9% and Microsoft fell 5% as investors reacted to elevated spending on artificial intelligence infrastructure.

Official reports show the U.S. economy expanded at an annualized rate of 2% in the first quarter of 2026, recovering from a sluggish 0.5% growth in the previous period. While business investment in equipment and AI remains robust, economists warned that persistent energy price volatility stemming from the war in Iran could dampen future consumer spending.

The Federal Open Market Committee opted to leave interest rates unchanged at its April meeting, citing a need to manage risks between inflation and employment. Chair Jerome Powell highlighted that while economic activity is expanding at a solid pace, developments in the Middle East have introduced significant uncertainty into the global outlook.