The U.S. Commerce Department on Thursday revised fourth-quarter 2024 GDP growth downward to an annualized rate of 0.5 percent, marking a significant slowdown from earlier estimates. The revised figure represents weaker economic performance during the October-December period than previously reported.

Meanwhile, core inflation data for February showed prices rose 3.0 percent year-over-year, meeting economists' expectations. The inflation reading, measured by the Federal Reserve's preferred gauge, provides key insight into price pressures as policymakers consider future monetary policy decisions.

Consumer spending, a critical driver of economic growth, showed minimal gains during the period when inflation pressures persisted. The spending data reflects household behavior during a time of elevated prices across various sectors of the economy.

Financial markets opened with muted trading as investors digested the mixed economic signals while also monitoring developments in the Middle East, where a fragile ceasefire has created uncertainty. Treasury yields remained relatively steady ahead of the inflation data releases.

The economic data comes as Federal Reserve officials continue to assess the trajectory of inflation and economic growth. The combination of slower GDP growth and persistent inflation presents ongoing challenges for monetary policy decisions in the coming months.