Interest rate markets digest slowdown in US GDP growth rate...

	  Interest rate markets digest slowdown in US GDP growth 

rate

	  Mining sector M&A lifts FTSE to all-time high 

	  Yen drops to latest 34-year low 

(Updated at 5:16 p.m. (2116 GMT))

Stocks snapped a three-day winning streak on Thursday as disappointing forecasts from Facebook and Instagram owner Meta hammered the tech sector, and Japan's yen sank through 155 per dollar for the first time since 1990.

Tepid U.S. GDP data and Meta's slump META.O weighed on equities.

U.S. Treasury yields hit their highest in over five months after the data showed signs of persistent inflation, lowering hopes that the Federal Reserve will cut interest rates anytime soon.

U.S. Treasury Secretary Janet Yellen told Reuters that U.S. economic growth was likely stronger than suggested by weaker-than-expected data on first-quarter output and said the Biden administration was keeping all options open to respond to threats from China's excess industrial capacity.

Gold prices rose, and oil prices finished higher. MSCI's gauge of stocks across the globe .MIWD00000PUS fell 3.87 points, or 0.51%, to 755.59.

The Dow Jones Industrial Average .DJI fell 375.12 points, or 0.98%, to 38,085.80, the S&P 500 .SPX lost 23.21 points, or 0.46%, to 5,048.42 and the Nasdaq Composite .IXIC lost 100.99 points, or 0.64%, to 15,611.76.

Shares of Alphabet and Microsoft advanced in extended hours trading after both companies reported quarterly results that beat Wall Street estimates. However, Intel INTC.O shares dropped 8% in extended hours trading after it forecast second-quarter revenue and profit below market estimates.

European shares closed down 0.7%, paring losses after shedding more than 1% intraday, hit by bleak earnings from consumer giant Nestle NESN.S and Dutch digital payments firm Adyen ADYEN.AS .

London's FTSE 100 .FTSE held onto gains and touched a record high as UK-listed miner Anglo American AAL.L surged on a $39 billion buyout offer from Australian rival BHP (BHP) .

U.S. SLOWDOWN Beyond corporate earnings, investors were digesting the sharper-than-expected slowdown in first-quarter U.S. economic growth.

"Despite the expected GDP slowdown in 2024, there are no imminent signs of a recession," said Mutual of America Capital Management's chairman and chief executive, Stephen Rich.

Hotter-than-expected inflation reports have pushed back and reduced expectations for Federal Reserve interest rate cuts, with markets now pricing in roughly a 70% chance of a first reduction in September. Investors are not even fully convinced there will be another cut this year, having expected around six cuts at the start of the year. FEDWATCH

The dollar index =USD softened 0.21% at 105.58, and the euro EUR= retreated 0.02% to $1.0727.

The yield on benchmark U.S. 10-year notes US10YT=RR rose 5 basis points to 4.704%, from 4.654% late on Wednesday.

The 2-year note US2YT=RR yield, which typically moves in step with interest rate expectations, rose 6.3 basis points to 4.9996%, from 4.937%.

The Japanese yen JPY= reversed earlier losses, up 0.03% against the greenback, after sinking to its lowest level in 34 years. It is now firmly past the latest line in the sand traders had drawn for Japan to intervene in the markets.

"Tokyo has still not intervened, and I reiterate that it does look like there will be no intervention so long as USD/JPY's climb continues in a relatively non-volatile fashion," said RBC Capital Markets' head of Asian FX strategy, Alvin Tan.

The Bank of Japan started its two-day rate-setting meeting on Thursday, with expectations that it will keep its key short-term interest rate target unchanged.

Attention will be on what Bank of Japan Governor Kazuo Ueda's says about the yen's struggles.

Brent crude futures LCOc1 settled 99 cents, or 1.1%, higher at $89.01 a barrel. U.S. West Texas Intermediate crude futures CLc1 was up 76 cents, or 09%, at $83.57.

Spot gold XAU= added 0.69% to $2,331.78 an ounce. U.S. gold futures GCc1 settled down 0.2% to $2,319.90 an ounce.

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