S&P 500 Plummets as Alarming Trade Deficit Report Shakes Markets

Wall Street's benchmark index takes a nosedive following grim trade data—just another day in traditional finance's volatility circus.

The Numbers Don't Lie

Trade deficit figures sparked immediate sell-offs, wiping billions from market caps within hours. Institutional investors scrambled while retail traders watched portfolios bleed red.

Cryptocurrency markets barely blinked during the turmoil—digital assets demonstrating their decoupling from legacy financial shocks once again.

Another reminder why decentralized finance doesn't lose sleep over outdated economic indicators.

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During the month, imports jumped by $18.6 billion to $281.5 billion while exports fell by $0.1 billion to $178 billion. Overall, the trade deficit increased by $18.7 billion month-over-month, or 22.1%, to $103.6 billion. That’s much higher than the consensus estimate of $89.45 billion.

Imports Pressure GDP as Inflation Gauge Rises to Highest Level Since February

In the first quarter, businesses rushed to front-run imports ahead of President Trump’s tariffs, contributing to a 0.5% fall in gross domestic product (GDP). This dynamic may be playing out again in the third quarter in light of new tariff rates announced earlier this month.

Elsewhere, the personal consumption expenditures (PCE) index increased by 0.3% month-over-month and 2.6% year-over-year, matching economist estimates. Core PCE, which excludes volatile food and energy prices, rose to a five-month high of 2.9% on an annual basis and was in line with the economist estimate as well.