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Stock market’s post-GDP whiplash shows it’s ‘foolish’ to expect anything but volatility - MarketWatch

1. U.S. GDP shrank 0.3% in Q1 due to trade-war anxiety. 2. Some companies withdraw guidance amidst tariff uncertainty impacting markets. 3. Tariff volatility and inflation fears disrupt supply-chains, risking stagflation. 4. April saw the S&P 500's highest volatility since March 2020. 5. Investors anticipate trade deals affecting future market sentiment.

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FAQ

Why Bearish?

The negative GDP report, coupled with trade uncertainty, indicates a weakening economy. Historically, poor GDP performance has led to S&P 500 declines as investor confidence falters.

How important is it?

Economic indicators like GDP and inflation directly influence investor sentiment and stock performance in the S&P 500.

Why Short Term?

Immediate implications from GDP data and tariffs are pressing, likely impacting S&P 500 swings in the coming months.

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