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Shares of Snap sank 16% Wednesday, a day after the social media company said it wouldn't provide a current-quarter outlook and plans to cut costs because of "uncertainty" about the future.

The gross domestic product reading fell short of the 0.4% growth that economists surveyed by The Wall Street Journal expected.

U.S. President Donald Trump said on Wednesday that Americans should be patient in the face of a first quarter economic contraction, arguing that his tariffs would eventually lead to a boom in the U.S. economy. The economy shrank in the first quarter, weighed down by a deluge of goods imported by businesses eager to avoid higher costs, underscoring the disruptive nature of Trump's often chaotic tariff policy. Republican Trump blamed his Democratic predecessor, Joe Biden, for the poor showing.

Economists polled by Reuters had forecast consumer spending would rise 0.5% after a previously reported 0.4% increase in February. The data was included in the advance gross domestic product report for the first quarter that was published earlier on Wednesday, which showed GDP contracted at a 0.3% annualized rate last quarter, weighed down by a record surge in imports. President Donald Trump's sweeping tariffs have fanned fears the economy is facing a period of tepid growth, even recession, and high inflation, commonly referred to as stagflation.

The U.S. economy has broken its three-year streak of steady growth, as the GDP shrank at an annual rate of 0.3% in the first quarter.

The U.S. economy contracted by an annualized 0.3% last quarter, the Commerce Department's Bureau of Economic Analysis said on Wednesday, as American businesses rushed to buy imported goods ahead of President Donald Trump's barrage of tariffs. Futures contracts that settle to the Fed's policy rate continued to point to a start to Fed rate cuts in June, with a total of four quarter-point reductions likely, bringing the rate to the 3.25%-3.5% range by year-end. Fed policymakers meet next week and are nearly universally expected to keep rates in their current 4.25%-4.5% range.

Private payroll additions tumbled in April as companies struggled with an uncertain outlook while President Trump's fresh tariff policies have disrupted business planning.

The U.S. economy contracted 0.3% in the first quarter of 2025, the first negative reading since 2022, according to an initial measurement released Wednesday by the Commerce Department.

The U.S. economy shrank at a 0.3% annual pace from January through March, the first drop in three years, as President Donald Trump's trade wars disrupted business. First-quarter growth was slowed by a surge in imports as companies in the United States tried to bring in foreign goods before Trump imposed massive tariffs. Imports grew at a 41% pace, fastest since 2020, and shaved 5 percentage points off first-quarter growth.

Safety and security company Federal Signal (NYSE:FSS) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 9.2% year on year to $463.8 million. The company’s full-year revenue guidance of $2.06 billion at the midpoint came in 0.5% above analysts’ estimates. Its non-GAAP profit of $0.76 per share was 3.9% above analysts’ consensus estimates.