Stock Indices Close Higher Amid Trade War Fears on Wall Street

Stocks rebounded to close higher today (April 30, 2025) despite earlier declines, amid concerns that the U.S. economy could falter under the weight of Donald Trump’s trade war. Following a 2% drop due to a report showing contraction in GDP, the S&P 500 at Wall Street recorded a gain of 0.15%, while the Nasdaq slightly fell by approximately 0.1%. The industrial Dow Jones advanced by 141 points or 0.35%. First-quarter GDP fell by 0.3%, as announced by the Commerce Department, reversing from the previous quarter’s 2.4% growth. Overall in April, the Dow Jones and S&P 500 dropped by 3.1% and 0.8%, respectively, while the Nasdaq rose by 0.8%. Some traders noted that data was distorted by a 41% increase in imports over the last quarter as companies tried to avoid Trump’s tariffs. However, the report also highlighted a significant slowdown in consumer spending and reduced government expenditure amid Elon Musk’s cuts in DOGE. Nevertheless, other data suggested the economy remains resilient. Consumer spending in Q1 increased at its slowest quarterly rate since 2023. A separate report showed spending rose by 0.7% in March, surpassing economists’ expectations of 0.5%.