The U.S. economy contracted in Q1 2025
According to reports from the U.S. Department of Commerce, GDP in Q1 2025 decreased by 0.3%, marking the first decline since 2022. The main reason is that businesses and consumers increased imports before President Trump's new tariffs took effect, causing a sharp rise in imports and negatively affecting GDP.
Stock market plummeting
Major indices on Wall Street dropped sharply during trading on April 30:
Dow Jones lost 693.95 points (-1.71%)
S&P 500 decreased by 114.92 points (-2.07%)
Nasdaq 100 decreased by 477.56 points (-2.44%)
Nasdaq Composite decreased by 452.88 points (-2.59%)
The main reason is concerns about economic recession and the impact of new tax policies.
Mortgage and savings interest rates are fluctuating
Mortgage rates: Decreased nearly 30 basis points in the past week, with both home purchase and refinancing rates dropping, reflecting expectations that the Federal Reserve (Fed) will cut rates this year.
Savings accounts: Some banks offer interest rates of up to 5% APY for savings accounts, the highest in years, to attract depositors.
Concerns about recession are rising: Analysts warn that the risk of a U.S. economic recession is increasing. According to JPMorgan Chase, the probability of recession reflected through stock prices closely related to the U.S. economy has risen to nearly 80%.
Impact from the tax policy of the Trump administration
President Trump has imposed a 25% tariff on imported cars from Canada and Mexico, as well as increased tariffs on goods from China. This has raised concerns about inflation and negatively affected the domestic manufacturing sector.
There is a high possibility of further adjustment if Trump maintains the current stance. Americans are expected to revolt everywhere, with many organizations planned to protest across the United States tomorrow. Prepare for this decline. I think it will be the final drop before moving up to the 100 range.
