After tumbling within the morning, US shares pushed into the inexperienced to shut out the day following the discharge of an economic report from the Commerce Division, which revealed that the US financial system contracted within the first quarter.
The S&P 500 and Dow notched a seven-day winning streak, their greatest steady rally this 12 months. Nevertheless, the indexes closed out April within the purple because the inventory market has been attempting to get well from a steep slump brought on by President Donald Trump’s tariffs.
The Gross Home Product (GDP) registered at an annualized fee of -0.3%, the division reported. This marks a pointy slowdown from the two.4% progress fee within the fourth quarter and is effectively under economists’ expectations of a 0.8% enhance.
In response, Trump defended his administration’s economic record, blaming former President Joe Biden for the present challenges. “I’m not taking credit score or discredit for the inventory market, I’m simply saying that we inherited a multitude,” he mentioned.
For those who’re simply becoming a member of us, right here’s a recap of immediately’s key financial information:
Republicans and Democrats react: Republican senators voiced concern over the most recent financial knowledge however mentioned they continue to be hopeful that Trump’s expansive legislative agenda — together with tax cuts — will go this summer time, probably steering the financial system again on monitor. Republicans echoed Trump’s feedback and blamed Biden for the present state of the financial system. In the meantime, Democratic Sen. Peter Welch said, “The one who is president of america bears the burden of what the financial system is doing, or the advantage of what it’s doing.”
Trump adviser spins: Peter Navarro, particular counselor to the president, tried to spin the GDP report as “very constructive information” for Individuals, touting how tariffs are driving a “great quantity” of home funding. “This was one of the best unfavourable print, as they are saying within the commerce, for GDP I’ve ever seen in my life. It actually must be very constructive information for America,” Navarro mentioned.
Inflation cooled: In different financial information, inflation slowed sharply in March, transferring nearer to the Federal Reserve’s 2% goal, whereas client spending continued to gasoline the financial system. Read more.
Too quickly to name recession: Whereas the most recent GDP report signifies a major slowdown, it doesn’t necessarily signal that the US is in a recession — no less than not but. CNN’s Matt Egan explains why this contraction doesn’t routinely equate to a recession.
CNN’s Maureen Chowdhury, Donald Judd, Morgan Rimmer, Alison Essential, Manu Raju, Casey Riddle, Package Maher, Alicia Wallace, Bryan Mena and Matt Eagan contributed to this reporting.
This put up was up to date with particulars on the US inventory market efficiency for immediately and the month of April.
