European equities slumped on Friday as preliminary GDP data for the eurozone showed a slightly lower-than-expected increase in the first quarter, while German preliminary GDP data fell well short of expectations.
The U.S. gross domestic product (GDP) increased at a 1.1% annualized pace in the first quarter of 2023, well below analyst expectations of 2% growth, according to advance estimates released Thursday by the Bureau of Economic Analysis.
Morgan Stanley's chief U.S. equity strategist and chief investment officer Mike Wilson said that U.S. equities are likely to witness a short-term blow given the risks of further Federal Reserve rate hikes and declining corporate earnings.
The Purchasing Managers' Index (PMI) flash estimates for both manufacturing and services activity in the U.S., as measured by S&P Global, climbed in April, showing economic expansion and positively surprising analysts' expectations.