By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > News > US stocks dragged down by weak earnings as economy stumbles
News

US stocks dragged down by weak earnings as economy stumbles

News Room
Last updated: 2025/04/30 at 1:03 PM
By News Room
Share
3 Min Read
SHARE

Stay informed with free updates

Simply sign up to the US equities myFT Digest — delivered directly to your inbox.

Wall Street stocks fell on Wednesday after weak US growth data and a flurry of lacklustre corporate earnings.

The blue-chip S&P 500 sank more than 2 per cent in early trading in New York, threatening to break a six-day winning streak, before recovering to trade down 1.1 per cent by early afternoon.

Starbucks tumbled 6.9 per cent after the coffee chain said late on Tuesday that quarterly net income halved year on year, while server maker Super Micro Computer — a supplier for chip giant Nvidia — dropped 15 per cent after providing revenue and earnings per share guidance far below analysts’ expectations. 

Nvidia fell 2.1 per cent and Tesla dropped 4.9 per cent, dragging the tech-heavy Nasdaq Composite down 1.3 per cent. Facebook parent Meta and Microsoft are due to report after the market close.

Wednesday’s moves came after data showed the US economy contracted for the first time since 2022, shrinking by an annualised 0.3 per cent over the first three months of this year as companies rushed to buy imported goods in anticipation of President Donald Trump’s steep tariffs on most countries.

Data also showed inflation slightly higher than expected. The Personal Consumption Expenditures index — the Fed’s favoured measure of price growth — rose 2.3 per cent year on year in March.

“Inflation was also more elevated, fuelling the stagflation narrative and limiting what the Federal Reserve can do to help as economic sentiment sours,” said James Knightley, chief international economist at ING.

Others appeared less concerned, with Morgan Stanley’s chief US economist Michael Gapen writing in a note to clients that the headline drop in GDP “disguises strength in domestic demand growth”.

He noted, however, that demand was likely to fall once the “shocks from tariffs, government lay-offs, ongoing slowing in immigration and other new policies” began to show up in data over the coming months.

Consumer and business sentiment has plunged across the US in the wake of Trump’s aggressive tariff announcements, even as the stock market has rebounded in recent weeks after the bulk of the levies were postponed for 90 days.

“The economy was essentially stagnant in the first three months of the year, while growth in headline and core inflation accelerated,” said Ryan Sweet, chief US economist at Oxford Economics.

Concerns about the health of the world’s biggest economy hit commodity markets, with Brent crude, the international oil benchmark, down 1.7 per cent at $63.14 a barrel.

However, European equities ended the session in positive territory, with the region-wide Stoxx Europe 600 up 0.5 per cent and Germany’s Dax up 0.3 per cent.

Read the full article here

News Room April 30, 2025 April 30, 2025
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
OpenAI risks being undercut by cheaper rivals, says star investor

Stay informed with free updatesSimply sign up to the Artificial intelligence myFT…

There’s a ticking time bomb in Trump’s ‘big, beautiful bill’

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

US-China trade talks ‘stalled’, says Scott Bessent

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Elon Musk counts the cost of his ‘government efficiency’ blitz

Elon Musk’s four-month blitz through the US government briefly made him Washington’s…

Welcome to the age of cyber insecurity in business

Stay informed with free updatesSimply sign up to the Technology myFT Digest…

- Advertisement -
Ad imageAd image

You Might Also Like

News

OpenAI risks being undercut by cheaper rivals, says star investor

By News Room
News

There’s a ticking time bomb in Trump’s ‘big, beautiful bill’

By News Room
News

US-China trade talks ‘stalled’, says Scott Bessent

By News Room
News

Elon Musk counts the cost of his ‘government efficiency’ blitz

By News Room
News

Welcome to the age of cyber insecurity in business

By News Room
News

EU to launch age-check app as pressure builds on Big Tech

By News Room
News

Trump tariffs take Detroit and Windsor from ‘best friends’ to verge of break-up

By News Room
News

Crypto wins a champion in the White House

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?