For traders, this did not come as a surprise.

WASHINGTON, April 30 (Reuters) – The U.S. economy contracted for the first time in three years in the first quarter, overwhelmed by a surge in imports as businesses rushed to avoid higher costs from tariffs, highlighting the destructive nature of President Donald Trump's often chaotic trade policy.

However, in the report from the Department of Commerce on gross domestic product (GDP), published on Wednesday, the deterioration in economic prospects was significantly exaggerated. Although consumer spending slowed considerably, growth rates remained healthy. Businesses also increased investments in equipment.