[New York Stock Market Close] Mixed Results: S&P500 Climbs 7 Days Despite Q1 Decline

# Wall Street Ends Mixed as U.S. Economy Shrinks for the First Time in Three Years **New York – Kim Min-Jung, Newsis Correspondent** Major Wall Street indexes closed mixed on April 30 (local time) amidst rising concerns that former President Donald Trump’s trade tariffs could further hamper economic growth, following the first U.S. economic contraction in three years. At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average increased by 141.74 points, or 0.35%, closing at 40,669.36. The S&P 500 index, focusing on large-cap stocks, rose 8.23 points, or 0.15%, ending at 5,569.06. Conversely, the tech-centric Nasdaq Composite dropped 14.98 points, or 0.09%, to settle at 17,446.34. Over the month, the Dow declined by 3.17%, while the S&P 500 decreased by 0.76%. In contrast, the Nasdaq saw a 0.85% increase. # U.S. Economy Contraction Sparks Concerns Investor sentiment deteriorated as the U.S. economy experienced its first contraction in three years. The Commerce Department reported a 0.3% annualized decline in first-quarter gross domestic product (GDP) compared to the previous quarter, marking the most significant economic weakening since Q1 2022. The downturn was primarily due to a surge in imports from pre-tariff stockpiling, along with weakened consumer spending and reduced federal government expenditures. Analysts are increasingly worried about the enduring effects of Trump’s trade war rhetoric. Oliver Pursche, senior vice president at Wells Fargo Advisors, observed, “The majority of the GDP drop is due to increased imports. Given that higher imports reduce GDP growth, this surge was prompted by tariff expectations. Adjusting for this, we’d see positive GDP growth for the quarter. However, this still forecasts a cloud over Q2, reflecting in the market pressure.” # High Uncertainty Clouds Market Sentiment Scott Helfstein, head of investment strategy at Global X ETFs, commented, “The inconsistency in policies is creating exceptional uncertainty among corporations and investors. This report should alert the new administration.” He also mentioned that stakeholders might undervalue the need for short-term economic pain for long-term objectives. Former President Trump responded negatively to the weak economic data, blaming former President Joe Biden. On Truth Social, Trump remarked, “This is Biden’s stock market, not Trump’s. I took office on January 20, and tariffs are just starting. Companies are returning to America at unprecedented rates. Although our nation will soon thrive, it will take time to resolve Biden’s leftover issues, unrelated to tariffs.” During a later cabinet meeting, Trump suggested that Q2 GDP might also be affected by policies from the Biden administration. # Key Economic Data Provide Mixed Signals Other economic indicators released during the session were mixed. Personal Consumption Expenditures (PCE) for March surpassed expectations, rising 0.7% month-on-month. However, the PCE price index, a vital inflation measure, slowed to a 2.3% year-over-year increase, down from February’s 2.7%. Hiring activity also weakened, with the ADP National Employment Report revealing a private sector job increase of only 62,000 in April, significantly below forecasts. # Market Focus Shifts to Big-Tech Earnings The major indices, which showed broad declines early in the session, regained losses or turned positive later, buoyed by optimism surrounding upcoming earnings reports from tech giants Microsoft and Meta Platforms. Microsoft closed the session up 0.31%, while Meta saw a 0.98% decline. Notable movers included Super Micro Computer, whose shares decreased by over 11% following a downward revision of its Q3 earnings guidance. Snap, the parent company of Snapchat, dropped 12.54% as it withheld a Q2 outlook. The CBOE Volatility Index (VIX), often referred to as "Wall Street’s fear gauge," rose by 2.48% to finish at 24.77, highlighting heightened market uncertainty as the earnings season begins.