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Wall Street opened lower on Wednesday as a gloomy economic report signalled that the U.S. economy may have shrunk at the start of the year, rattling investor confidence and breaking the market’s recent winning streak, the Associated Press reported.
According to the report, the S&P 500 fell 1.5% in morning trading, putting an end to a six-day rally. The Dow Jones Industrial Average slid 479 points (1.2%), and the Nasdaq composite dropped 2%, weighed down by losses in major tech stocks, including artificial intelligence leader Super Micro Computer.
Markets rattle after surprise GDP contraction and early-year tariff jitters
The market retreat followed a weaker-than-expected GDP report, which showed the U.S. economy likely contracted in the first quarter — a surprising downturn given the strong finish to 2024. While the economists had anticipated modest growth, the data suggested early signs of economic trouble, possibly exacerbated by the anticipation of President Donald Trump’s new tariffs.
Importers rushed to bring in goods before the tariffs could raise prices, artificially inflating import numbers but ultimately dragging down overall gross domestic product (GDP), the report said.
ALSO READ: US Economy Shrinks Sharply as Trump’s Tariff Moves Rattle Markets
