Stocks have been submerged sharply in the morning trade after showing new official information The US economy shrinks In the first three months of the year.
S&P 500 is down to 5,468 by reducing 93 points or 1.7%; The Doo Jones Industrial Average decreased by 604 points or 1.5%; And the technology-heavy nasadak composit shade is 2.4%.
The Commerce Department said in a report on Wednesday that the total domestic product price of the country – the total price of goods and services – 0.3% has shrunk at the annual rate, less than 2.4% increase in the final three months of 2024.
“Equity traders will not be happy with the negative GDP,” Carl Weinberg, chief economist of high frequency economics, said in a research note. “GDP contract is not good for the company’s profit, because whatever is.”
Wall Street analysts have warned that the Trump administration’s trade, immigration and financial policies can achieve US economic growth, some economists have increased the adversity of the downturn.
Investors will receive another important economic snapshot on Friday when the Labor Department publishes data in April’s job growth.
According to a report by the ADP on Wednesday, private employers have added 622,6 jobs in April, less than half of the job added in March.
Contributed to this report.
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