Dow futures slide 300 points after data shows economy contracted last quarter: Live

Stock futures fell on Wednesday to wrap up a volatile April after data showed the U.S. economy contracted in the first quarter as President Donald Trump’s flurry of policy moves, especially on trade, weighed on business sentiment.

Dow Jones Industrial Average futures shed 351 points, or 0.8%. S&P 500 futures were off 1.3%, while Nasdaq 100 futures lost 1.8%.

First quarter gross domestic product declined at a 0.3% rate, the Commerce Department said on Wednesday, a rapid reversal from a 2.4% increase in the fourth quarter. Imports surged by 41% in the last quarter, subtracting from GDP, as companies sought to get ahead of Trump’s global trade fight.

A separate report from ADP also signaled an economic slowdown, with private payroll growth slowing in April to just 62,000 during the month. That was well below the Dow Jones consensus estimate from economists of 120,000.

The sour GDP data put a damper on what has been a remarkable comeback in stocks for April. Trump’s sweeping “reciprocal” tariff announcement on April 2 sent the stock market into a tailspin, with the S&P 500 down more than 11% at one point for the month and off by nearly 20% from its February record. A comeback ensued as Trump walked back the stiffer duties, and the S&P 500 heading into Wednesday was down just about 1% for the month.

The major averages ended Tuesday higher after Commerce Secretary Howard Lutnick told CNBC that the White House was close to announcing a trade deal, but didn’t name the country. Later in the afternoon, Trump said that tariff negotiations with India are “coming along great” and that the U.S. could soon strike an agreement with the nation.

But the selling returned on Wednesday, with the weak GDP report raising concerns that the chaos caused by Trump’s policy flurry may have already pushed the economy toward a recession before any substantial trade deals are enacted.

In a post on Truth Social, Trump blamed a “Biden ‘Overhang'” following the weak numbers, telling people to “BE PATIENT!!!” and that his policies “will take a while” to take effect.

First Solar shares plunged more than 12% in the premarket after chief executive Mark Widmar said that the president’s tariffs pose a “significant economic headwind” for the solar technology company’s manufacturing facilities, slashing its full-year forecast in response.

Meanwhile, shares of artificial intelligence chip darling Nvidia fell more than 3% in early trading in sympathy with server maker Super Micro Computer’s more than 19% decline. Super Micro issued weak preliminary results for the fiscal third quarter.