US Economy Contracts 0.3% in First Quarter Amid Tariff Concerns

The US economy contracted by 0.3% in Q1 2025, marking its first decline since 2022. This contrasts with analyst expectations of a 0.4% growth. Key impacts include:

Stock markets fell, while Treasury yields and gold prices increased.
The S&P 500 experienced a 7.3% drop since President Trump's inauguration.
The Nasdaq Composite lost 11%, the largest decrease since 2001.
Imports rose over 41% in Q1, driven by consumer and business preparations for anticipated tariffs.
Consumer and government spending declined, contributing to the negative GDP figure.

The Treasury Department announced potential enhancements to its buyback program amid rising yields and economic concerns. Investors are looking for trade deal signs following statements about unsustainable US-China relations.

The Conference Board's latest consumer confidence index fell by 7.9 points, continuing an eight-month decline, indicating significant pessimism among consumers.