Wednesday, closing an extremely unstable April, as new US economy figures showed a shrinkage of GDP in the first quarter of 2025.
Uncertainty has intensified by the president’s continued interventions in commercial policy, which have burdened the investment climate and business expectations.
Main indicators: dip on all board
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The Dow Jones index fell by 615 points or 1.5%.
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The S&P 500 fell 2%.
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Technological Nasdaq lost 2.6% of its value.
GDP shrink and importing
US GDP decreased by 0.3% in the first quarter of 2025, according to the Ministry of Commerce, compared to 2.4% in the last quarter of 2024. This is the first negative indication after three years, with the main cause of imports of imports by 41% in the trimester, as the operations were rushed to. The increase in imports resulted in significant points from GDP, while domestic consumption remained relatively stable.
Additional indications of deceleration
Signs of bending was also given by the labor market, with the ADP report showing an increase in private recruitment by just 62,000 in April. Much lower than analysts’ estimates for 120,000 new jobs.
The role of Trump duties and uncertainty
The announcement of extensive “reciprocal” duties from Trump on April 2 caused a shore of the markets, with the S&P 500 receding more than 11% indoor and reaching nearly 20% from highs in February. Recovery occurred when the President withdrew to some of his initial threats. However, uncertainty remains high, as negotiations on agreements with countries such as India have not yet been completed.
Impact on Key Shares
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FIRST SOLAR’s stock collapsed more than 12%, following CEO’s statement, Mark Widmar, that Trump duties are an “important financial obstacle” for the company’s production units in India, Malaysia and Vietnam, leading to a review of up to the annual results.
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GE Healthcare also revised its forecasts for the year due to the estimated impact of duties.
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It fell about 4%, influenced by a 18%Super Micro Computer dive, after disappointing preliminary results.
Concern for recession and political developments
The frustrating image of GDP has reinforced fears that continuous political upheavals and trade conflicts can already push the economy into recession before there are even substantial trade agreements. Donald Trump, in a post on Truth Social, dismissed responsibilities in the “Biden” and called on the citizens to be patient, arguing that his “need time” policies to work.
As Scott Helfstein, Head of Global X’s investment strategy, notes, “the continuous sequence of political upheavals has led to very high levels of uncertainty for businesses and investors. This report should act as a bell for the new administration, but perhaps their willingness to cause financial pain.”
Wall Street is experiencing one of the most hectic periods of recent years, with economic uncertainty and political interventions defining the climate. The next few months are expected critical to the course of the US economy and international markets, as investors are looking for signs of stability and clarity in policy -making.
