Advertisment
The S&P 500 posted narrow gains Wednesday in a bout of volatile trading after data showed that the U.S. economy contracted in the first quarter and investors’ recession fears ramped up.
The Dow Jones Industrials shook off a negative start to vault 141.74 points to 40,669.36.
The much-broader index forged out gains of 8.23 points to 5,569.06
The NASDAQ Composite stayed in the red, though, 14.98 points to 17,446,34.
While the S&P 500 and the Dow ultimately notched their seventh consecutive winning day, investors endured a rocky session. At their lows, the S&P 500 was down nearly 2.3%, while the Dow slid more than 780 points.
First Solar shares plunged more than 8% after chief executive Mark Widmar said that the president’s tariffs pose a “significant economic headwind” for the solar technology company’s manufacturing facilities, slashing its full-year forecast in response.
GE HealthCare also cut its outlook for the year to account for the impact from tariffs.
Meanwhile, shares of artificial intelligence chip darling Nvidia was marginally lower in sympathy with server maker Super Micro Computer’s nearly 12% decline. Super Micro issued weak preliminary results for the fiscal third quarter.
First quarter gross domestic product declined at a 0.3% rate, the Commerce Department said on Wednesday, a rapid reversal from a 2.4% increase in the fourth quarter. Imports surged by 41% in the last quarter, subtracting from GDP, as companies sought to get ahead of Trump’s global trade fight.
The report also showed a big slowdown in consumer spending and a decline in government spending amid Elon Musk’s DOGE cuts.
A separate report from ADP also signaled an economic slowdown, with private payroll growth slowing in April to just 62,000 during the month. That was well below the Dow Jones consensus estimate from economists of 120,000.
The major averages ended Tuesday higher after Commerce Secretary Howard Lutnick reported the White House was close to announcing a trade deal, but didn’t name the country.
But the selling returned on Wednesday, with the weak GDP report raising concerns that the chaos caused by Trump’s policy flurry may have already pushed the economy toward a recession before any substantial trade deals are enacted.
In a post on Truth Social, Trump blamed a “Biden ‘Overhang’” following the weak numbers, telling people to “BE PATIENT!!!” and that his policies “will take a while” to take effect.
Prices for the 10-year Treasury gained ground, lowering yields to 4.15% from Tuesday’s 4.18%. Treasury prices and yields move in opposite directions
Oil prices retreated $2.24 to $58.18 U.S. a barrel.
Prices for gold sank $29.10 to $3,304.70 U.S.
Dow Pops After Earlier Selloff, S&P Gains
