U.S. Stocks Close Mixed Amid Economic Challenges
U.S.stocks ended Wednesday with mixed results, capping a volatile April. The S&P 500 inched up by 0.15%, while the Nasdaq Composite dipped slightly. The dow Jones Industrial Average gained 141 points. This came as new data revealed the U.S. economy contracted for the first time since 2022.
The Commerce Department reported that the first-quarter GDP fell by 0.3% annually, reversing a 2.4% gain from the previous quarter. The contraction was partly due to a 41% jump in imports as businesses stocked up ahead of new tariffs. Consumer spending slowed, and government spending declined, further impacting growth.
Markets faced turbulence due to economic contraction and trade policy uncertainty. The GDP fell, partly becuase of increased imports and slower consumer spending. Tariff uncertainty played a significant role. President Trump’s tariff announcements earlier in the month initially boosted markets. Though, renewed volatility returned as investors grappled with weak economic data and inflation concerns.
According to the Commerce Department, the economy shrank, influenced by a surge in imports and reduced government spending. Tariff uncertainty added to the volatility. Trump’s tariff pauses and trade deal hints initially lifted spirits. But the weak economic data and unclear trade negotiations dampened optimism. Trump blamed the economic slide on the “Biden Overhang,” urging patience for his policies to show results. Analysts attribute the market’s weak performance to tariff-related uncertainties.Major companies like First solar and GE HealthCare cut forecasts due to tariff-related challenges.
april’s losses followed a sharp drop after Trump’s “reciprocal” tariffs declaration. The S&P 500 saw a significant drop.Trump blamed the economic slide on the “Biden Overhang,” urging patience for his policies to take effect. Analysts highlight policy uncertainty as the main cause.
- First-quarter GDP fell, reversing previous gains.
- Consumer spending slowed to its weakest pace in over a year.
- Major firms like First solar and GE HealthCare cut forecasts.
Trump’s second-term stock market performance is among the weakest for any president’s first 100 days. Analysts say tariff uncertainties are the primary cause. Kelly Bouchillon of Sound View wealth advisors noted, “Tariffs are the main issue.”
For more insights, visit this link.
