Wall Street took a hit Wednesday as S&P 500 futures dropped nearly a full percent, rattled by fresh numbers showing the U.S. economy hitting the brakes harder than expected. The Commerce Department’s first-quarter GDP report, released this morning, pegged growth at a meager -0.3%, a sharp miss from the 0.2% analysts had banked on. It’s a grim snapshot of an economy already wobbling before new tariffs, set to kick in soon, could pile on more pressure.
The Dow Jones futures weren’t spared either, shedding 0.9%, while Nasdaq 100 futures took a steeper dive, down 1.4%. Investors, already jittery from a string of lackluster corporate earnings, didn’t find much comfort in the day’s other big data drop: the ADP employment report. Private payrolls added just 62,000 jobs in April, way below the 115,000 forecast and the weakest since last July. Companies, spooked by tariff talks and trade tensions, seem to be slamming the brakes on hiring.
This GDP slump marks a stark slowdown from the 1.1% growth in last quarter’s final read. Consumer spending, the economy’s backbone, barely budged, inching up at a 0.8% annualized rate—half the pace economists had hoped for. Business investment flatlined, and inventories, usually a buffer, dragged growth down further. The only bright spot? A slight uptick in exports, but it wasn’t nearly enough to offset the broader chill.
Markets had been on edge since mid-April, when S&P 500 E-mini futures tanked 1.5% on April 16, signaling trouble brewing. Today’s data just poured fuel on those fears. Treasury yields held steady, with the 10-year note ticking up a basis point, while the dollar slipped slightly against major currencies. Investors are now eyeing Friday’s jobs report from the Labor Department, hoping for a clearer picture—or at least a lifeline.
The numbers don’t lie: economic growth is stalling, hiring is cooling, and markets are feeling the squeeze. With tariffs looming and corporate outlooks dim, Wall Street’s in for a bumpy ride.