Wall Street today: Nasdaq slumps 1.7%, S&P 500 tumbles 1.2% on recession fears after weak GDP data

Wall Street stocks declined sharply on Wednesday after data showed the US economy contracted in the first quarter, deepening concerns about the economic impact from President Donald Trump’s tariff policies.

As of 1:10 PM Eastern time, the S&P 500 was down 1.2%. The Dow Jones Industrial Average was down 0.8%, and the Nasdaq Composite was 1.7% lower.

At 10:46 AMEDT, the Dow Jones Industrial Average fell1.07%. The broad-based S&P 500 was down 1.4%, while the tech-rich Nasdaq Composite slumped1.9%.

About 15 minutes into trading, the Dow Jones Industrial Average fell 1.6%. The S&P 500 dropped 2% to 5,449.09, while the Nasdaq Composite Index slumped 2.6% to 17,005.71.

The gross domestic product (GDP) of the world’s largest economy fell at an annual rate of 0.3% in the first quarter, due to a surge in imports from businesses seeking to get ahead of Trump’s myriad tariffs.

Also Read | China stocks dip ahead of long holiday as trade war hits factories; HK rises on tech shares

A report by payroll firm ADP said private sector employment rose by 62,000 in April, a sharp drop from a revised 147,000 in March.

Investors are worried that uncertainty over Trump’s changing tariff policy is freezing corporate budgets and depressing consumer spending.

US President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday, while his trade team touted its first deal with a foreign trading partner.

In the bond market, the yield on the 10-year Treasury fell to 4.17% from 4.19% late on Tuesday.

Gainers and Losers

Starbucks shares tanked 7.9% after the coffee giant reported about a 50% fall in quarterly profit to $384.2 million.

Mondelez stock gained 3.3% as the company reported flat revenue but confirmed its full-year forecast.

Super Micro Computer shares plunged more than 16% after the company cut its third quarter forecasts.

Snapchat-parent Snap also lost over 16% after the social media company said it would not release financial forecast for the second quarter.

Caterpillar stock lost marginally, following its quarterly results.

Also Read | Volkswagen layoffs: Europe’s largest carmaker slashes headcount by 7,000

Bullion

Gold prices fell on Wednesday on stronger US dollar and signs of de-escalation in US-China trade war.

Spot gold edged down 1.1% at $3,279.51 an ounce as of 1145 GMT. US gold futures slipped 1.3% to $3,289.

Spot silver lost 2.2% to $32.24 an ounce, platinum fell 1.1% to $966.77 and palladium dropped 0.5% to $929.85.

Crude oil

Oil prices extended declines on Wednesday as the global trade war eroded the outlook for fuel demand.

Brent crude futures edged lower 77 cents, or 1.2%, at $63.48 a barrel by 1305 GMT. US West Texas Intermediate crude futures fell 74 cents, also 1.2%, to $59.68.