Major US stock indices opened lower on Friday after data showed the world’s largest economy grew at a weaker-than-expected pace and on stubborn inflation pressures.
At 09:30 am, the Dow Jones Industrial Average fell 169.22 points, or 0.34%, to 49,225.94, the S&P 500 lost 23.64 points, or 0.34%, to 6,838.25, and the Nasdaq Composite lost 128.79 points, or 0.57%, to 22,553.94.
According to the government’s initial estimate released on Friday, the inflation-adjusted gross domestic product (GDP) increased an annualized 1.4% in the fourth quarter ended December 31, 2025, after rising 4.4% in the prior period.
Overall, the US economy grew at 2.2% in 2025.
“That was a bummer of a number,” said Brian Jacobsen at Annex Wealth Management, according to Bloomberg.
“Real-time indicators had our hopes high that we’d see something closer to 3%, so 1.4% is a big letdown,” Jacobsen added.
Separately, official data showed the Federal Reserve’s preferred inflation guage — the core Personal Consumption Expenditures Price Index — rose 0.4% in December, the most in nearly a year. On an annual basis, the core PCE climbed 3%.
Following the economic data release, the yield on 10-year Treasuries was little changed at 4.07%, while the US dollar wavered.
