Wall Street tumbles as weak GDP, trade turmoil spark recession fears

Trump, in a post on Truth Social, deflected blame for the weak GDP numbers onto the Biden administration, urging Americans to be patient as his own policy overhaul takes shape.

US stocks slumped on Wednesday, capping a volatile month with fresh worries over economic growth and trade policy jitters. A disappointing GDP print for the first quarter, coupled with ongoing uncertainty around President Donald Trump's tariff strategy, pulled major indices sharply lower on the final trading day of the month.

The Dow Jones Industrial Average dropped 690 points, or 1.7 percent, while the S&P 500 shed 2 percent. Tech-heavy Nasdaq underperformed, plunging 2.6 percent.

According to data from the Commerce Department, the US economy shrank at an annualised pace of 0.3 percent in the January–March quarter — a stark contrast to the 2.4 percent growth recorded in Q4. A 41 percent surge in imports, as companies rushed to front-load shipments ahead of potential tariffs, weighed heavily on the GDP figure.

Adding to the gloom, private payroll data from ADP showed that just 62,000 jobs were added in April, well below expectations of 120,000 — further fuelling fears of a slowdown.

Markets had staged a dramatic rebound earlier in the month, recovering from a sharp selloff triggered by Trump’s April 2 announcement of sweeping reciprocal tariffs. At one point, the S&P 500 had been down over 11 percent for April and nearly 20 percent from its February highs. Hopes of a truce in the trade battle had helped pare losses, with Trump recently signalling progress in talks with India. But Wednesday’s renewed decline suggests investor nerves are far from settled.

Trump, in a post on Truth Social, deflected blame for the weak GDP numbers onto the Biden administration, urging Americans to be patient as his own policy overhaul takes shape.

On stock specific front, Nvidia lost nearly 4 percent, dragged lower after server-maker Super Micro Computer tumbled over 18 percent on weak preliminary Q3 results.

First Solar plunged over 10 percent after its first-quarter earnings fell short of estimates, coming in at $1.95 per share versus the $2.49 expected by analysts polled by LSEG. The solar equipment maker also disappointed investors with a weaker-than-expected outlook for the second quarter and the full year.

Snap shares nosedived 16 percent after the social media firm declined to issue forward guidance, citing macroeconomic uncertainties that could weigh on ad spending. Still, its Q1 revenue beat expectations at $1.36 billion, just above the $1.35 billion forecast. The company posted a loss of 8 cents per share.

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