U.S. Stocks Mixed as GDP Contraction and Tariff Uncertainty Weigh on Markets

U.S. equities closed unevenly on Wednesday, capping a volatile April marked by economic contraction and trade policy ambiguity. The S&P 500 edged up 0.15%, while the Nasdaq Composite slipped 0.86%. The Dow Jones Industrial Average managed a 141-point gain despite fresh data revealing the first economic contraction since 2022.

Commerce Department figures showed GDP shrinking at a 0.3% annualized rate in Q1, reversing Q4’s 2.4% expansion. The decline stemmed partly from a 41% import surge as businesses front-loaded orders ahead of new tariffs. Consumer spending growth hit a one-year low, while reduced government outlays further hampered economic activity.

Market sentiment fluctuated throughout the month as tariff implementations were alternately paused and threatened. The whipsaw action left investors grappling with conflicting signals about trade policy direction amid weakening macroeconomic fundamentals.