Stocks closed lower on worries about a potentially toxic cocktail for financial markets, one where inflation remains stubbornly high but the economy’s growth flags.

A sharp drop for Meta Platforms, one of Wall Street’s most influential stocks, also dragged the market lower. The S&P 500 fell 0.5% Thursday after paring an earlier drop of 1.6%. The Dow Jones Industrial Average lost 1%, and the Nasdaq composite gave back 0.6%.

Treasury yields climbed after the government reported that inflation remained hotter than forecast during the first three months of the year. The economy’s growth also slowed more than expected.

On Thursday:

The S&P 500 fell 23.21 points, or 0.5%, to 5,048.42.

The Dow Jones Industrial Average fell 375.12 points, or 1%, to 38,085.80.

The Nasdaq composite fell 100.99 points, or 0.6%, to 15,611.76.

The Russell 2000 index of smaller companies fell 14.31 points, or 0.7%, to 1,981.12.