Dow Plummets Over 600 Points Amid Intensifying Sell-Off: Live Updates on Market Reactions to Disappointing GDP Data

A trader works on the floor at the New York Stock Exchange as the market opened on April 29, 2025.

Stocks took a hit on Wednesday, ending April’s promising market bounce. This drop was sparked by data revealing that the U.S. economy shrank in the first quarter. Fears of a recession grew as President Trump’s policy changes, especially regarding trade, began to take a toll.

The Dow Jones Industrial Average dropped by 633 points, or 1.5%. The S&P 500 fell by 1.8%, and the Nasdaq Composite slipped by 2.3%. According to the Commerce Department, the economy contracted at a rate of 0.3%. This was a stark decline from a 2.4% growth in the previous quarter. A surge in imports—up 41%—played a big role in this downturn as companies rushed to prepare for Trump’s trade battles. Consumer spending also slowed significantly, contributing to the economic downturn.

An ADP report painted a similar picture, indicating that private payroll growth slowed sharply in April, with only 62,000 jobs added—far below the expected 120,000.

This grim economic data overshadowed what had been a strong stock market recovery earlier in the month. Trump’s announcement of "reciprocal" tariffs had caused the S&P 500 to plummet over 11% at one point. A recovery followed as Trump eased some tariff proposals, bringing the index down to just about 1% for the month as of Wednesday.

In the days leading up to this downturn, shares had been buoyed by optimism about potential trade agreements. Commerce Secretary Howard Lutnick hinted at an impending deal, and Trump had stated that negotiations with India were progressing well. However, investor confidence faltered when the GDP report raised doubts about the impact of Trump’s economic strategies.

In a post on Truth Social, Trump attributed the weak numbers to a "Biden ‘Overhang,’" urging people to "BE PATIENT!!!" and suggesting that his policies would take time to show effects.

Scott Helfstein, Global X’s head of investment strategy, pointed out that the consistent shifts in policy have created uncertainty for businesses and investors. "This report should serve as a warning for the new administration," he suggested, hinting at the underestimated economic pain resulting from aggressive policies.

In the aftermath, First Solar’s shares dropped by over 9% after its CEO, Mark Widmar, commented that the tariffs posed significant challenges. The company also lowered its full-year forecast due to these impacts. Similarly, GE Healthcare adjusted its outlook to consider the tariff-related consequences.

On a different note, shares of Nvidia, a key player in the AI chip market, fell more than 3%. This was influenced by Super Micro Computer’s poor preliminary results, which showed a significant 16% drop.

As the market adjusts, it’s clear that economic policies will require careful navigation to avoid deeper pitfalls. The challenges ahead will test the resilience of both the economy and investors. For more insights on the current economic climate, you can check reports from trusted sources like the U.S. Bureau of Economic Analysis.

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