News

Wall Street slides after economy contracts in first quarter

Wall Street's main indexes dropped on Wednesday after data showed the economy contracted for the first time in three years in the first quarter, deepening concerns around the impact of U.S. tariffs and the global trade war. Private payrolls growth also slowed more than expected in April, while the personal consumption expenditure index - the Federal Reserve's preferred inflation gauge - rose slightly more than expected in March on an annual basis. "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.

Tarnished Magnificent 7 stocks rebound faces test with earnings

NEW YORK (Reuters) -The U.S. technology and growth stocks known as the "Magnificent Seven" have regained their footing somewhat after a steep slide, but a few weeks of growing valuations and a dimming earnings edge could make it harder for them to push Wall Street higher. The stocks -- Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta Platforms and Tesla -- have stumbled in 2025, dragging down the benchmark indexes they had lifted to record peaks the prior two years. The highly valued shares had swooned as investor fears spiked about the economic fallout from President Donald Trump's tariffs.