U.S. stocks ended mixed on Wednesday, closing the book on a volatile April that saw markets rattled by economic contraction and ongoing uncertainty surrounding trade policy. The S&P 500 edged up 0.15%, the Nasdaq slipped 0.86%, and the Dow Jones Industrial Average rose by 141 points, despite troubling economic data pointing to the first quarterly GDP decline since 2022.
Economic Growth Stalls as Imports Surge and Consumer Spending Slows
According to the Commerce Department, U.S. GDP shrank at a 0.3% annualized rate in Q1, a stark reversal from the 2.4% growth recorded in the previous quarter. The decline was driven in part by a 41% jump in imports, as businesses moved quickly to stockpile goods ahead of President Trump’s renewed tariff policies.
Additional drag came from slowing consumer spending, now at its weakest level in more than a year, along with declining government expenditures.
Markets Caught Between Tariff Optimism and Trade Policy Whiplash
While markets briefly rallied earlier in April following Trump’s temporary pause on certain tariffs and suggestions of new trade deals with countries like India, sentiment quickly deteriorated. Investor confidence was eroded by weaker-than-expected economic indicators, persistent inflation, and a lack of clarity on the administration’s broader trade agenda.
The S&P 500, at one point, had fallen more than 11% in April following Trump’s April 2 announcement of sweeping “reciprocal” tariffs—one of the steepest drops since his return to office.
Trump Shifts Blame to Biden
Posting on Truth Social, Trump deflected criticism over the economic downturn, claiming the current conditions were the result of his predecessor’s influence.
“This is Biden’s Stock Market, not Trump’s,” he wrote, referring to what he called a lingering “Biden Overhang.” He urged Americans to remain patient, arguing that the benefits of his policies would take time to materialize.
Despite the rhetoric, Trump’s second term is currently marked by one of the weakest 100-day market performances in modern presidential history, according to analysts.
Corporate Earnings Hit by Tariff Fallout
Several major companies have begun to revise their forecasts downward, citing tariff-related pressures:
- First Solar and GE HealthCare both trimmed earnings outlooks, pointing to rising input costs and disrupted supply chains.
- Nvidia shares also slipped, weighed down by weaker-than-expected results from Super Micro Computer, a key player in the AI and data center ecosystem.
Analysts Warn of Prolonged Volatility
Financial experts point to policy ambiguity as the core risk factor for markets right now.
“This is very clearly brought on by the uncertainty surrounding the tariffs, period,” said Kelly Bouchillon, managing partner at Sound View Wealth Advisors.
Unless trade policies are clarified and economic momentum returns, analysts warn that April’s turbulence could extend deeper into Q2.
