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Wall Street stocks fell on Wednesday after poor US growth data and a host of incorrect corporate profits.
Blue-Chip S&P 500 sank more than 2 percent in the early New York trading, threatening to break a six-day winning line before healing to trade 1.1 percent by the early hours of the afternoon.
Starbucks ousted 6.9 percent after the coffee chain said Tuesday on Tuesday that three -month net revenues halved year a year, while the Super Micro Computer Service manufacturer – a supplier for the Nvidia chip giant – dropped 15 percent after securing revenue and profits for stocks far below analists.
Nvidia fell 2.1 percent and Tesla fell 4.9 percent, dragging the NASDAQ heavy technology component below 1.3 percent. Parent on Facebook Meta and Microsoft will report after closing the market.
Wednesday’s movements came after data showed that the US economy was first contracted since 2022, reducing a 0.3 percent annual during the first three months of this year as companies rushed to buy imported goods in anticipation of President Donald Trump’s steep tariffs in most countries.
The data also showed inflation slightly higher than expected. Personal Consumer Expenditure Index – FASH FED for price increase – increased 2.3 percent year annually in March.
“Inflation was also more elevated, promoting the narrative of staging and limiting what the federal reserve can do to help with economic feelings,” said James Knightley, the International Economist Chief in Ing.
Others seemed less anxious, with Morgan Stanley’s chief Michael Gapen, writing in a note to clients that the fall of the GDP title “masks the strength in increasing domestic demand”.
He noted, however, that demand is likely to fall as “tariffs, government vacations, constant slowdown of immigration and other new policies” began to appear in data over the coming months.
The sense of consumer and business has fallen throughout the US after aggressive Trump tariff announcements, although the stock market has returned in the last few weeks after most taxes have been postponed for 90 days.
“The economy was essentially stagnant in the first three months of the year, while the title growth and essential inflation accelerated,” said Ryan Sweet, US economist chief at Oxford Economyics.
Concerns about the health of the world’s largest economy hit goods, with Brent Crude, the international standard of oil, falling 1.7 percent to $ 63.14 a barrel.
However, European capital completed the session in the positive territory, with Stoxx Europe throughout the region 600 by 0.5 percent and Dax of Germany up to 0.3 percent.
