The U.S. Commerce Department reported a 0.3% contraction in the nation's GDP for the first quarter of 2025, a shift from the 2.4% growth in the previous quarter, primarily due to increased imports and slowing in other economic sectors. This news led to a significant drop in the stock market, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all experiencing declines, reflecting investor concerns. Additionally, persistent inflation and rising government bond yields present further challenges for policymakers as they address the complexities of the current economic landscape.
