U.S. stock indexes including the DJIA experienced a significant drop on May 1, 2024, driven by inflation concerns and skepticism about a Federal Reserve rate cut.

Rising U.S. labor costs, up by 1.2% in the first quarter, underscore the persistent inflationary pressures that may hinder the Fed's ability to reduce interest rates.

Consumer confidence has fallen to its lowest in more than a year, adding to the negative sentiment among investors.

Despite market anticipation, the Federal Reserve is expected to maintain current interest rates in the upcoming meeting, with only one modest rate cut projected for 2024.

Major tech companies in the 'Most Magnificent Seven' stocks, including Tesla and Amazon, saw their share prices decline, contributing to overall losses in key stock market indexes.

A majority of S&P 500 companies, 79.2%, have exceeded analyst earnings estimates for Q1, with Eli Lilly and PayPal notably raising their profit forecasts for the year.