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US GDP growth came in at a 1.6% annualized pace in the first quarter, falling well short of expectations of 2.5%. The reading comes amid ongoing debate about the path of the Federal Reserve's interest rate campaign.

Treasury yields rose after the GDP print, with the benchmark 10-year yield (^TNX) surging to its highest levels of the year. At last check, it was sitting around 4.71%.

Meanwhile, Meta shares sank about 11% as the market balked at rising costs at the Facebook and Instagram owner, which plans to spend up to $10 billion on AI infrastructure investments. Concerns grew about how long it will take for that spending to feed into revenue, pulling down tech stocks more broadly. Microsoft (MSFT), Alphabet (GOOGL, GOOG), and Amazon (AMZN) were all down more than 3%.

The Meta miss put a dent in hopes that results from the "Magnificent Seven" might juice a comeback in stocks, whose rally has lost momentum recently. It's also a reality check for Microsoft and Google, also burdened with high earnings growth and AI expectations, as they report after the bell Thursday.

Caterpillar (CAT) shares also sank about 6% after the heavy equipment maker said it continues to see weakness in Europe and economic softening in the Asia-Pacific, excluding China.

On the macroeconomic front, the spotlight will turn to the March reading of the Personal Consumption Expenditures index, the Fed's favored inflation gauge, set for release on Friday.


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