• Stocks were lower again on Thursday, extending a sell-off in the holiday-shortened week.

• A revision to first-quarter GDP showed economic growth was less than initially reported, while inflation was also cooler.

• Markets are bracing for the release of PCE inflation data on Friday.

US stock were down on Thursday as traders digested data on the economy and labor market while awaiting the release of the Federal Reserve’s favorite inflation gauge on Friday.

The Dow Jones Industrial Average added to deep losses logged in the previous two sessions, led by a sharp drop in shares of Salesforce. The software company was down more than 16% after missing revenue estimates and giving weak guidance for the current quarter.

Economic growth for the first quarter was revised down to 1.3% from 1.6% initially reported. While growth was weaker in the first three months of the year, inflation was also cooler, boosting hopes that the Fed could have some room to cut rates this year.

“The downward revision to economic growth as well as smaller downward revisions to inflation make the Fed a little more likely to start reducing interest rates by September. With the economy operating in low gear, a margin of slack capacity is opening up, and consumers are feeling less flush,” Bill Adams, Chief Economist for Comerica Bank, said.

The 10-year Treasury fell five basis points after spiking earlier in the week after a series of weak bond auctions. The 10-year yield dipped to 4.57% after jumping above 4.6% on Wednesday.

Meanwhile, the number of Americans applying for unemployment benefits rose last week, hinting at a cooling labor market that might support the case for the Fed to start easing monetary policy. Jobless claims rose to 219,000, ahead of estimates and about 3,000 higher than the previous week.

Markets are now bracing for the release of personal consumption expenditures data, which is the Fed’s preferred inflation measure. Economists expect the data to show inflation in April rose 2.7% year-over-year, while core PCE rose 0.2%, compared to 0.3% in March.

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday: 

Here’s what else is going on today:

Story continues

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil ticked 0.5% lower to $78.71 a barrel. Brent crude, the international benchmark, dipped 0.7 % to $82.92 a barrel.

• Gold slipped to $2,339 per ounce.

• The 10-year Treasury yield fell five basis points to 4.57%.

• Bitcoin dropped 0.25% to $68,086.68.

Read the original article on Business Insider