US stocks mixed closing Wednesday, summarizing turbulent April marking economic contraction and uncertainty in trade policy.
The S&P 500 rose 0.15%, while the NASDAQ Composite lost .086%, and the Dow Jones Industrial Average scored 141 points after it was shown that the US economy had contracted for the first time since 2022.
According to the Commerce Department, GDP in the first quarter fell at a rate of 0.3% per year, overturning a 2.4% profit from the previous quarter.
The contraction was partly due to a 41% surge in imports as businesses stockpiled ahead of President Trump’s new tariffs.
Also, consumer spending slowed to its weakest pace in more than a year, government spending fell, dragging further growth.
Tariff uncertainty
The market was gathering at the beginning of the month after Trump suspended tariffs and suggested trade deals with countries like India. But new volatility has returned as investors digested weak economic data, inflation concerns and lack of clarity in trade negotiations.
After the April 2nd announcement of “mutual” tariffs, April losses fell sharply, with the S&P 500 falling more than 11% at one point.
True socially, Trump wrote, “This is Biden’s stock market, not Trump’s stock,” attempting to change the liability for economic slides, claiming that “Biden Overhang” is behind a poor number. He urged patience and said his policies take time to deliver results.
Trump’s second term stock market recorded one of the weakest performances in the president’s first 100 days in modern history.
Analysts point to the main cause of ongoing policy uncertainty. “This is very clearly brought about by tariffs, uncertainty surrounding periods,” said Kelly Bouchillon of Sound View Wealth Advisors.
Meanwhile, major companies such as First Solar and GE Healthcare have reduced forecasts due to tariff-related headwinds. Nvidia’s stock slid after the disappointing results of the super microcomputer.
