Market Update: Dow, S&P 500, and Nasdaq Take a Hit as Powell Warns of Tariff Challenges and Nvidia Crashes

Wall Street is adjusting its GDP growth estimates as fresh data comes in, still feeling the effects of Trump’s tariffs.

The Atlanta Fed’s GDPNow tool now estimates that GDP dropped by 2.2% in the first quarter of the year. This is an improvement from earlier predictions of a 2.4% decline. The update comes after retail sales rose by 1.4% in March, which met expectations. A specific part of this data, the control group that excludes volatile categories, saw a smaller rise of 0.4%, slightly below the anticipated 0.6%. Interestingly, the previous month’s data was also revised upward.

In contrast, manufacturing, which is crucial as it accounts for about 75% of total production, grew by 0.3% for the fifth consecutive month. However, overall industrial production fell by 0.3%, mainly due to a sharp drop in utility output.

Goldman Sachs noted that the retail sales report was stronger than they had projected. They revised their GDP growth estimate for the first quarter up by 0.2 percentage points to 0.4%. They also increased their forecast for domestic final sales to 1.9%, up by 0.3 percentage points.

This information reflects a mixed economic picture. While retail and manufacturing show some resilience, the declines in industrial production highlight ongoing challenges. The next GDP reading is due on April 30, which will provide further clarity on the state of the economy.

For more on economic forecasts and trends, you can check this comprehensive report from MarketWatch.

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Jerome Powell, Nvidia, President Trump, Nasdaq Composite, China, Dow Jones Industrial Average, trade war, trade policy