U.S. Stock Market Summary for Wednesday, April 30, 2025



Major Indices

  • S&P 500: +0.15% → 5,569.06

  • Dow Jones Industrial Average: +0.35% → 40,669.36

  • Nasdaq 100: +0.13% → 19,571.02

  • Russell 2000: -0.63% → 1,964.12

Market Overview
U.S. equities closed slightly higher on Wednesday after staging a notable comeback from steep losses earlier in the session. Markets were rattled at the open by a negative Q1 GDP report, which showed a 0.3% contraction—the first since 2022—due to a 41% surge in imports ahead of new tariffs. However, investor sentiment recovered as fresh data signaled easing inflation and hopes resurfaced that the Federal Reserve might pivot towards supportive monetary policy. The Dow and S&P 500 both extended their winning streaks to seven sessions, while the Nasdaq finished just above flat.

Economic Snapshot

  • GDP: U.S. real GDP declined by 0.3% in Q1 2025, primarily driven by a sharp increase in imports as businesses stockpiled goods ahead of expected tariffs. This import surge cut approximately five percentage points from GDP growth, raising concerns about underlying economic momentum.

  • Inflation: The March PCE price index remained flat month-over-month, with a year-over-year increase of 2.3%, suggesting inflationary pressures are moderating.

  • Employment: Private-sector job creation slowed markedly in April, with only 62,000 new jobs added—well below March's revised figure of 147,000—signaling potential softness in the labor market.

Expert Commentary

  • Louis Navellier (Navellier & Associates): “A swift trade deal could revive investor confidence and increase the likelihood of Fed rate cuts. But delays would fuel supply chain issues and inflation, worsening stagflation risks.”

  • Brett Kenwell (eToro): “These data may help ease concerns that the Fed can’t act even if the job market weakens.”

  • Krishna Guha (Evercore ISI): “Today’s data gives both investors and the Fed a clearer snapshot of the economy right before the tariff shock kicks in.”

  • Fawad Razaqzada (Forex.com): “Weak economic numbers could accelerate Fed rate cuts as policymakers move to cushion the slowdown.”

Government & Political Notes
Former President Donald Trump attributed the weak GDP performance to the “Biden overhang” and urged patience, suggesting that the effects of his own policies would take time to materialize. Meanwhile, reports emerged that the U.S. is actively reaching out to China, fueling hopes of progress in trade negotiations and contributing to the market rebound.

Conclusion
Despite early-session volatility driven by weak economic data, U.S. equities closed higher as investors grew optimistic about potential policy responses and easing inflation. While trade tensions and a decelerating labor market continue to weigh on sentiment, markets showed resilience. Going forward, investor focus will remain on economic data, central bank policy direction, and developments in U.S.-China trade relations.

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