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Stock market today: Dow, S&P 500, Nasdaq come back from steep lows after GDP print to cap turbulent April
Amalya Dubrovsky , Karen Friar and Alexandra Canal
Updated 2 min read
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SPY +0.04%
QQQ -0.01%
^GSPC +0.15%
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^IXIC -0.09%
US stocks recovered from steep early-session Wednesday as Wall Street capped a volatile month and investors digested a deluge of economic data, led by the first contraction of the US economy in three years.
The benchmark S&P 500 (^GSPC) rose more than 0.1% after an early drop of more than 2%, while the tech-heavy Nasdaq Composite (^IXIC) recovered from a similarly large intra-session decline to close just below the flatline. The Dow Jones Industrial Average (^DJI) climbed more than 0.3% to extend its longest win streak of 2025.
Markets wrapped up a tumultuous April that saw stocks whipsawed by President Trump's tariff policy and recent upbeat stance on negotiations. The Dow dropped more than 3% for the month, alongside much smaller moves for the S&P 500.
Stocks climbed out of session lows after a Chinese social media account affiliated with the country's state-run channel posted the US had been reaching out to China seeking to negotiate on tariffs.
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Earlier Wednesday, an update on gross domestic product (GDP) showed the US economy contracted at an annual rate of 0.3% in the first quarter, according to an advanced estimate released by the US Bureau of Economic Analysis on Wednesday.
The decrease primarily reflected an increase in imports as Trump's tariff push rattled confidence and businesses rushed to stockpile. Economists had expected a drop in growth of 0.1%. In Q4 2024, real GDP increased 2.4%.
Prior to the GDP release, an ADP read on private payroll growth in April showed a pullback in hiring amid what the report called a "difficult" environment defined by "unease" among businesses.
On the inflation front, the March reading of the Federal Reserve's preferred inflation gauge showed prices eased last month as investors brace for an uptick in pricing pressures following the implementation of President Trump's tariff agenda.
At the same time, inflation in the first quarter clocked in hotter than expected, complicating the path forward for the Federal Reserve. The "core" Personal Consumption Expenditures index, which excludes the volatile food and energy categories, grew by 3.5% in the first quarter, above estimates for 3.2% and above the 2.6% seen in the prior quarter.
On Wednesday after the bell, Microsoft (MSFT) announced better than expected earnings on strong cloud bookings. Social media platform Meta (META) also posted better than expected first quarter results, offering strong guidance despite fears an advertising slowdown due to tariff uncertainty.
Read more: The latest on Trump's tariffs
LIVE COVERAGE IS OVER 25 updates
Ines Ferré
Meta shares rise in after hours following Q1 beat, strong Q2 outlook despite fears of tariff-influenced ad slowdown
Yahoo Finance's Dan Howley reports:
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Ines Ferré
Microsoft beats Q3 estimates on top and bottom line on strong cloud bookings
Yahoo Finance's Dan Howely reports:
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Ines Ferré
Stocks recover steep losses, S&P 500, Dow extend longest win streak of 2025
Stocks pared losses with the S&P 500 (^GSPC) and The Dow Jones Industrial Average (^DJI) closing in green territory, though both indexes were down for April to cap a volatile month.
See Also6 use cases for big data in manufacturing | TechTargetWhat Happens When IoT Meets AI and Big Data? | IoT For AllThe Coolest Stellar Startups Of The 2025 Big Data 10010 Ways Big Data Is Changing BusinessThe S&P 500 and Dow extended their longes win streak of 2025, with both climbing out of negative territory to close positive for the session despite a disappointing GDP print which sparked worries that a prolonged trade war could lead to a recession.
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Advanced ChartInes Ferré
Google CEO warns judge a breakup of search empire 'will have many unintended consequences'
Yahoo Finance's Alexis Keenan reports:
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Ines Ferré
Visa CEO on economic slowdown, new stablecoin deal, and AI agents that shop for you
Yahoo Finance's Brian Sozzi reports:
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Ines Ferré
Tariff impact top of mind for Wall Street following disappointing GDP reading
Stocks are modestly lower after data released this morning showed the US economy contracted for the first time in three years as goods imports jumped ahead of Trump administration tariffs.
Some economists are looking past the GPD print, wondering more about what will happen in the second half of the year if tariffs are held in place or deals with trading partners lag.
"We are not overly concerned about the negative GDP print. After all, the economy expanded 2.5% in 2022 as a whole despite the decline in 1Q22," said Brian Rose, Senior US Economist, UBS Global Wealth Management on Wednesday
"What is more concerning is the potential impact of tariffs, which is likely to cause a more substantial economic slowdown in the second half of 2025."
President Trump blamed former President Joe Biden for the disappointing GDP print.
“I have to start off by saying, that’s Biden. That’s not Trump,” Trump said on Wednesday during a Cabinet meeting. "We took over his mess."
In a social media post earlier on Wednesday Trump said the GDP contraction has "NOTHING TO DO WITH TARIFFS" and to "BE PATIENT!!!"
Ines Ferré
Oil prices on track for biggest monthly drop since 2021 as trade war sparks recession, demand fears
Crude oil prices are headed for their worst monthly drop since 2021 as fears over a global economic downturn and demand shock as a result of tariffs come as the supply of oil is about to surge.
West Texas Intermediate (CL=F) crude, the US benchmark, was down over 3.5% on Wednesday to trade as low as $58.20 a barrel, while Brent (BZ=F), the international benchmark, also sank to as low as $60.93 a barrel after a report indicated Saudi Arabia, a major producer, is willing to deal with a prolonged period of lower oil prices.
WTI futures have lost over 16% this month, while Brent crude has dropped closer to 17%, the largest monthly decline since November 2021.
Read more here.
Grace O'Donnell
Stellantis stock falls after the Jeep maker pulls guidance due to 'tariff-related uncertainties'
Stellantis stock (STLA) fell over 3% after the Big Three automaker reported a weakening sales picture in the first quarter and pulled its full-year guidance in light of President Trump's tariffs.
Yahoo Finance's Pras Subramanian reports:
Read more here.
Ines Ferré
Trump on GDP data: 'That's Biden. That's not Trump'
President Trump blamed former President Joe Biden for data released this morning showing a contraction in first quarter GDP.
“I have to start off by saying, that’s Biden. That’s not Trump,” Trump said on Wednesday during a Cabinet meeting. "We took over his mess."
Trump touted domestic investments coming into the country to create factories.
Commerce Secretary Howard Lutnick praised President Trump when describing a TSMC chip-making facility being developed in Arizona that will require 4,000 employees.
“This is all driven by your tariff policies,” said Lutnick. “No chance this would be happening without it.”
Earlier this morning, President Trump went on social media to blame Biden for a negative market reaction to tariffs.
“This is Biden’s Stock Market, not Trump’s,” wrote Trump after the GDP data was released. “I didn’t take over until January 20th. Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers. Our Country will boom, but we have to get rid of the Biden “Overhang.””
Read more here.
Alexandra Canal
Stocks off session lows
Stocks came off session lows on Wednesday as investors digested a wave of economic data, including the first contraction of the US economy in three years.
In mid-morning trade, the benchmark S&P 500 (^GSPC) dropped around 0.9%, while the tech-heavy Nasdaq Composite (^IXIC) sank 1.3%. The Dow Jones Industrial Average (^DJI) pulled back about 0.6%.
Earlier in the trading day, all three major indexes had fallen around 2%.
Consumer Staples (XLP) and Health Care (XLV) led the market action while Energy (XLE) was the biggest laggard of the day, down over 3%.
Alexandra Canal
Housing contract activity jumped in March
Yahoo Finance's Claire Boston reports:
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Laura Bratton
Starbucks stock drops 7% after US sales fall for fifth straight quarter
Starbucks stock fell 7.8% early Wednesday after the coffee giant's second quarter earnings report disappointed Wall Street and cast a shadow over its CEO's plan to turn around the company.
US comparable store sales — a closely watched metric that includes results from stores open for more than a year — fell for the fifth consecutive quarter, sinking 2% as consumers sought cheaper alternatives at rivals such as Dunkin' and McDonald's (MCD). Wall Street analysts had expected a more modest 0.3% decline in the results on Tuesday.
Starbucks' slumping store sales are a result of fewer customers visiting its stores to buy drinks, though those who still frequent its shops are spending more money. Transactions fell 4% from the prior year, while the average ticket size, or dollar amount spent in each transaction, rose 3% in the US.
Other key stats disappointed too. The coffee chain reported adjusted earnings per share of $0.41 for the quarter ending March 30, less than the $0.49 expected from Wall Street analysts, according to Bloomberg data. Its revenue of $8.76 billion fell short of the projected $8.83 billion.
Read the full story here.
Fed's preferred inflation gauge shows prices came in flat in March
The latest reading of the Fed's preferred inflation gauge showed inflation eased in March as investors brace for an uptick in pricing pressures following the implementation of President Trump's tariff agenda.
The core Personal Consumption Expenditures (PCE) index, which strips out the cost of food and energy and is closely watched by the Federal Reserve, came in flat over the prior month, above expectations of a 0.1% increase and slower than the revised 0.5% increase seen in February.
Core PCE was up 2.6% over the prior year in March, in line with estimates and also ahead of February's upwardly revised 3% increase.
In the all-items measure, the price index came in flat month over month and rose 2.3% from a year ago, both roughly in line with forecasts. February's yearly price index reading was revised up to 2.7% from the prior 2.5%.
At the same time inflation in the first quarter clocked in hotter than expected, according to an earlier Bureau of Economic Analysis (BEA) report. The "core" Personal Consumption Expenditures index, which excludes the volatile food and energy categories, grew by 3.5% in the first quarter, above estimates for 3.2% and above the 2.6% seen in the prior quarter.
Separately, the BEA said consumer spending accelerated 0.7% for the month, above the 0.6% forecast. That came as personal income posted a 0.5% rise, against the estimate for 0.4%.
Laura Bratton
Nvidia stock drops after Super Micro earnings whiff, Trump looks to change Biden AI trade rule
Nvidia (NVDA) stock fell as much as 4.1% early Wednesday as news from Wall Street and Washington spurred fears of moderating AI demand and tightening chip trade rules from the Trump administration.
Nvidia customer Super Micro Computer (SMCI), which makes servers using Nvidia’s designs to sell to data center operators and tech firms, cut its revenue and profit outlook for the third quarter — the latest news to signal a wider potential pullback in demand for AI infrastructure.
Super Micro dropped roughly 18% on Wednesday morning.
Another challenge for Nvidia stock, according to analysts, is further potential changes from the Trump administration to AI chip export rules. Reuters reported late Tuesday that Trump officials are working to change a Biden-era AI trade rule capping access to US AI chips, potentially making it stricter.
Tech stocks were also under broad pressure amid a market sell-off spurred by negative news early Wednesday on US economic growth and the state of the labor market.
Read the full story here.
Dani Romero
Norwegian Cruise Line stock sinks after earnings miss, weaker booking outlook
Norwegian Cruise Line Holdings (NCLH) stock fell on Wednesday after the company reported weaker-than-expected first quarter earnings and indicated a slowdown in demand.
Shares were down over 9% on Wednesday morning.
Cruise lines like Royal Caribbean Cruises (RCL) have been saying that demand and bookings are holding up well, even with concerns that people might start spending less on travel.
But Norwegian’s earnings report tells a different story, pointing to a drop in bookings over the next year.
The cruise operator reported adjusted earnings of $0.07 per share on revenue of $2.13 billion, falling short of Wall Street forecasts of $0.09 per share and $2.15 billion in revenue.
For the second quarter, the company is expecting adjusted earnings of $0.51 per share, falling below expectations of $0.52 per share. It also forecast occupancy at 102.5% for the full year, missing estimates of 103.5%.
Norwegian attributed the shift to recent booking patterns and a more challenging macroeconomic environment.
“While we recognize there may be potential pressures on the top line, we believe these can be effectively offset by the continued execution of our cost savings initiatives,” CEO Harry Sommer said in a statement.
Alexandra Canal
Markets open lower as key economic data trickles in
US stocks fell on Wednesday as investors digested a deluge of economic data, led by the first contraction of the US economy in three years, and waited for a parade of Big Tech earnings to begin.
The benchmark S&P 500 (^GSPC) slid 1.4%, while the tech-heavy Nasdaq Composite (^IXIC) dropped around 2.1%. The Dow Jones Industrial Average (^DJI) sank 0.8% after the blue-chip index notched its longest win streak of 2025.
DJI - Delayed Quote • USD
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Advanced ChartAlexandra Canal
GDP contracts at annual rate of 0.3% in Q1
An update on gross domestic product (GDP) showed a sharp drop in growth with the US economy contracting at an annual rate of 0.3% in the first quarter, according to an advanced estimate released by the US Bureau of Economic Analysis on Wednesday.
It was the first negative reading in three years. Economists had expected a drop to 0.1% growth. In the fourth quarter of 2024, real GDP increased 2.4%.
The decrease primarily reflected an increase in imports as Trump's tariff push rattled confidence and businesses rushed to stockpile.
Along with an uptick in imports, the BEA said a deceleration in consumer spending and a downtick in government spending also added pressure to the reading. Compared to the fourth quarter, these were partly offset by upturns in investment and exports.
Pricing pressures also escalated.
The personal consumption expenditures (PCE) price index increased 3.6%, compared to an increase of 2.4% in the prior quarter. Excluding food and energy prices, the PCE price index jumped 3.5%, an acceleration from the 2.6% increase in Q4.
Read more here.
Myles Udland
US private payroll growth disappoints in April, futures sink
ADP's read on private payroll growth in April showed a pullback in hiring amid what the report called a "difficult" environment defined by an "unease" among businesses.
The report showed private payrolls rose by 62,000 in April, fewer than forecast by economists.
Stock futures fell following the report, with Nasdaq futures off more than 1% to lead losses.
“Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data,” said Nela Richardson, chief economist at ADP. “It can be difficult to make hiring decisions in such an environment.”
Grace O'Donnell
Humana stock jumps as Medicare Advantage costs hit the mark
Humana stock (HUM) jumped 5% premarket after the health insurer reported mixed first quarter results and reaffirmed its full-year guidance.
Investors were watching Humana after UnitedHealth Group (UNH) reported higher-than-expected medical costs in its Medicare Advantage business, which caused the stock to crash on April 17.
Humana noted in its earnings that its Medicare Advantage costs were in line with expectations and that the government-funded private health insurance business was "performing as expected."
The company beat on adjusted earnings per share of $11.58, compared to Wall Street's estimates of $10.09. Revenue came in at a slight miss of $32.11 billion, just under the consensus of $32.15 billion.
Read more here.
Grace O'Donnell
Caterpillar misses first quarter estimates, flags tariff hit to annual sales
Caterpillar (CAT) reported first quarter earnings that missed Wall Street's expectations Wednesday, as sales fell across all its segments and demand for construction equipment weakened in the quarter.
The industrial company also laid out two different scenarios for its annual forecast, one accounting for a tariff impact and one excluding that impact.
The forecast that excluded tariffs showed an improvement from its previous outlook, which sent the stock more than 3% in premarket trading.
As for the tariff impact, Caterpillar said it expects $250 million and $350 million in additional tariff-related costs in its second quarter.
As Yahoo Finance's Dani Romero reported yesterday, construction job openings fell in March as developers hesitated to move forward with new projects since President Trump's across-the-board tariff announcements. Overall, Caterpillar stock has had a tough year so far and is down 15% year to date.
Read more here.
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