Economic Uncertainty Amid Tariff Tensions: Markets React

The Dow and S&P 500 experienced a late rally, closing higher despite a shaky session marred by economic data showing a GDP contraction. Key highlights include a dip in private payroll growth and cooler inflation pressures, against the backdrop of trade uncertainties and interest rate speculation.

A late rally lifted the Dow and S&P 500 on Wednesday, as the market shook off earlier losses. Economic data indicating a 0.3% contraction in the GDP for the first quarter initially weighed on sentiment, showcasing the impact of ongoing trade tensions.

Compounding the complex economic picture, consumer spending rose slightly more than anticipated, highlighting ongoing resilience among U.S. consumers. However, private payroll growth showed a significant slowdown, with only 62,000 jobs added, well below projections, according to the ADP National Employment Report.

The late surge was buoyed by consumer staples and technology stocks, notably Mondelez, Meta Platforms, and Microsoft, which reported strong earnings. Traders are now looking towards Fed interest rate decisions, all while grappling with trade policy-induced volatility.

(With inputs from agencies.)