Markets Stumble as GDP Data and Tariff Chaos Rattle Traders—Trump Points Finger at Biden

Economic tremors hit Wall Street as Q1 GDP disappoints and trade war fears resurface. Former President Trump seized the moment, firing off a Truth Social broadside blaming the Biden administration for ’economic malpractice.’

The numbers don’t lie: equities dipped, volatility spiked, and Treasury yields wobbled as analysts scrambled to adjust models. Meanwhile, DC’s latest tariff threats sent semiconductor stocks into a tailspin—because nothing says ’stable markets’ like geopolitical brinkmanship.

Funny how ’free market’ Republicans and ’worker-first’ Democrats both keep finding new ways to make your portfolio bleed. Maybe next they’ll blame Bitcoin.

Tariff uncertainty

Markets had rallied earlier in the month after Trump paused some tariffs and hinted at trade deals with countries like India. But renewed volatility returned as investors digested the weak economic data, inflationary concerns, and lack of clarity on trade negotiations. 

April’s losses follow a sharp drop after Trump’s April 2 announcement of “reciprocal” tariffs, which sent the S&P 500 down more than 11% at one point.

On Truth Social, Trump sought to shift blame for the economic slide, writing, “This is Biden’s Stock Market, not Trump’s,” and claimed a “Biden Overhang” was behind the poor numbers. He urged patience, saying his policies would take time to deliver results.

The stock market under Trump’s second term has posted one of the weakest performances for any president’s first 100 days in modern history. 

Analysts point to continued policy uncertainty as a primary cause. “This is very clearly brought on by the uncertainty surrounding the tariffs, period,” said Kelly Bouchillon of Sound View Wealth Advisors.

Meanwhile, major companies like First Solar and GE HealthCare cut forecasts due to tariff-related headwinds. Nvidia shares also slipped, following disappointing results from Super Micro Computer.