U.S. Stocks Close Mixed Amid Economic Challenges
U.S. stocks finished Wednesday with mixed results, capping a volatile April. The S&P 500 inched up 0.15%, while the Nasdaq Composite dipped 0.86%. The Dow Jones Industrial Average gained 141 points. This came after 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. This decline followed a 2.4% increase in the previous quarter. The contraction was partly due to a 41% jump in imports as businesses prepared for new tariffs.
Consumer spending slowed to its lowest pace in over a year. Government spending also decreased, further impacting growth. Tariff uncertainty played a notable role in market volatility. Earlier in April, markets rallied when President Trump paused some tariffs and hinted at trade deals. However, renewed volatility returned as investors grappled with weak economic data and inflation concerns.
On truth Social, Trump blamed the economic downturn on the āBiden Overhang,ā urging patience for his policies to take effect. Analysts,though,point to tariff uncertainty as the main cause of the marketās weak performance.
Major companies like First Solar and GE HealthCare cut forecasts due to tariff-related challenges.Nvidia shares also fell following disappointing results from Super Micro Computer.
