April 30 (Reuters) – U.S. stock index futures pointed to a lower open on Wednesday as data showed the world’s largest economy contracted in the first quarter, amplifying worries about the fallout from President Donald Trump’s tariff policies.
Gross domestic product decreased at a 0.3% annualized rate in the first quarter, per the Commerce Department’s Bureau of Economic Analysis, weighed down by a flood of imports by businesses eager to avoid higher costs before new tariffs took effect. Economists polled by Reuters had forecast growth of 0.3%.
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The number likely exaggerated the economy’s dimming prospects though, given growth in consumer spending.
Still, it was the latest in a series of data releases over the month that have indicated an increasingly murky economic outlook, alongside a sharp decline in business and consumer sentiment.
Stock index futures dropped to session lows after the release.
The ADP National Employment Report, which comes ahead of Friday’s nonfarm payrolls, also showed a much smaller-than-forecast increase in private payrolls this month. March’s reading of the PCE price index – the Federal Reserve’s preferred inflation metric – is due after markets open.
“Given the amount of damage that’s been done to businesses (and) consumer confidence, we could just be getting started on seeing a continuation of these weaker numbers,” said John Luke Tyner, portfolio manager at Aptus Capital Advisors.
On the earnings front, Caterpillar (CAT.N)
, opens new tab rose 1.5% in premarket trading after its quarterly results.
Shares of “Magnificent Seven” members Meta Platforms (META.O)
, opens new tab and Microsoft (MSFT.O)
, opens new tab fell as investors await their results, due after markets close, for clarity on the outlook for the tech sector and AI-focused investments.
Fanning concerns about a pullback in investments into AI, Super Micro Computer (SMCI.O)
, opens new tab cut its third-quarter forecasts due to delays in customer spending, sending its shares down 19.5%.
, opens new tab dropped 16% after saying it would not provide a second-quarter financial forecast. Several companies have cut or even withdrawn guidance due to tariff uncertainty over the past weeks.
At 08:45 a.m. ET, Dow E-minis were down 370 points, or 0.91%, S&P 500 E-minis were down 78.5 points, or 1.41%, and Nasdaq 100 E-minis were down 376 points, or 1.91%.
The indexes have recouped some ground this month after a sharp slump following the April 2 “Liberation Day” tariff announcements. The Nasdaq is set for gains this month, while the other two are set to slip.
The S&P 500 notched its best winning streak since November on Tuesday.
Wednesday also marks 100 days since Trump took office. Erratic changes in trade policies and uncertainty have roiled markets over that period, offsetting initial optimism over the administration’s business-friendly policies.
The benchmark S&P 500 (.SPX)
, opens new tab has lost more than 7% since Trump’s presidency began, and is off over 9% from its February record close.
Among other stocks, Humana (HUM.N)
, opens new tab gained 4.9% after beating Wall Street estimates for first-quarter profit and Norwegian Cruise Line Holdings (NCLH.N)
, opens new tab tumbled 8.5% after missing first-quarter earnings estimates.
Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Devika Syamnath
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