U.S. Stocks Rebound as Import Surge Triggers Economic Contraction

U.S. stocks rebounded as oil prices logged a significant monthly drop, following the first economic contraction since 2022. While the S&P 500 and Dow turned positive, the Nasdaq ended lower. Economic uncertainty continues amid trade tensions, impacting corporate earnings and market dynamics.

U.S. stocks showcased a robust recovery during late Wednesday trading, overshadowing a substantial monthly dip in oil prices—the steepest in three-and-a-half years—triggered by the first reported economic contraction since 2022. Major indices like the S&P 500 and the Dow Jones Industrial Average managed to pull ahead just before the close of the trading session.

The technology-heavy Nasdaq Composite, however, recorded a slight decline, while mounting global trade uncertainties clouded the corporate earnings outlook. Market analysts, including Horizon Investment Services' CEO Chuck Carlson, noted that these movements might signify a challenging economic landscape in the months ahead.

As trade tensions persisted, Wall Street found some solace in the latest economic indicators, which showed steady consumer spending. Meanwhile, oil prices faced downward pressure, and market participants closely monitored outcomes from key tech companies like Meta and Microsoft.

(With inputs from agencies.)