NEW YORK, April 30 (Xinhua) -- U.S. stocks ended mixed on Wednesday, as investors grappled with a flurry of economic reports and awaited key earnings results from major tech firms.
The Dow Jones Industrial Average rose 141.74 points, or 0.35 percent, to 40,669.36. The S&P 500 added 8.23 points, or 0.15 percent, to 5,569.06, to end its third consecutive losing month. The Nasdaq Composite Index shed 14.98 points, or 0.09 percent, to 17,446.34.
Seven of the 11 primary S&P 500 sectors ended in green, with health and industrials leading the gainers by adding 0.89 percent and 0.74 percent, respectively. Meanwhile, energy and consumer discretionary led the laggards by losing 2.61 percent and 1.11 percent, respectively.
The biggest headline came from the U.S. Bureau of Economic Analysis, which reported that gross domestic product (GDP) shrank by 0.3 percent in the first quarter - the first economic contraction in three years. The decline, sharper than economists' forecast of a 0.1 percent dip, was largely attributed to a spike in imports. This marked a sharp reversal from the 2.4 percent growth recorded in the fourth quarter of 2024.
Adding to the economic gloom, the latest ADP private payrolls report showed a slowdown in hiring for April. The report described the labor market as operating in a "difficult" environment, with growing unease among employers.
"The continual sequence of policy reversals has led to very high levels of uncertainty for businesses and investors," said Scott Helfstein, head of investment strategy at Global X ETFs. "This report should be a canary in the coal mine for the new administration, but perhaps their willingness to inflict economic pain in pursuit of the long-term goals was underestimated."
On inflation, the Federal Reserve's preferred measure, the core personal consumption expenditures (PCE) index, rose 3.5 percent in the first quarter. That figure came in hotter than expected - above estimates of 3.2 percent and significantly higher than the 2.6 percent posted in the previous quarter - potentially complicating the Fed's outlook on interest rate policy. However, on a monthly basis, PCE data for March showed some easing in price pressures.
Investors are now turning their attention to earnings, particularly from Big Tech. Microsoft is set to report after the market close, with analysts closely watching for signs that its investments in artificial intelligence are beginning to pay off. Meta Platforms is also scheduled to release results, with investors keenly focused on how tariffs may be affecting its operations.
