Uh-oh, warns the economist
New statistical evidence of an economic slowdown heightened fears of a recession and pushed U.S. stock futures lower just before the opening on Wednesday. The Dow and the S&P 500 had been positive in recent days.
At 9:20 a.m. (EST), the total of crypto assets rose to $3.04 trillion, a drop of 2.8% in 24 hours. BTC remained stable, while ETH, XRP, SOL, and DOGE fell between 3% and 4%.
According to the Department of Commerce, the Gross Domestic Product (GDP) of the United States, which reflects the total sum of all goods and services produced in the first quarter, fell at an annualized rate of 0.3%, marking the first quarter of negative growth since the first quarter of 2022.
Some economists, even just a few days ago, were forecasting a positive quarter. But then figures appeared showing a sharp increase in imports, as businesses and consumers tried to get ahead of Trump’s tariffs. Imports subtract from GDP.
“Perhaps part of this negativity is due to the rush to import before tariffs rise, but there’s simply no way to sugarcoat it,” said Chris Rupkey, chief economist at Fwdbonds, to CNBC. “Growth has just evaporated.”
