Nasdaq 100: Tech Stocks Dive on GDP Miss, MSFT and Meta in Spotlight

Stocks Drop as GDP Contraction and Earnings Concerns Pressure Markets

Stocks traded sharply lower Wednesday morning after a surprise contraction in first-quarter GDP raised fresh concerns about the U.S. economy, putting April’s stock market recovery in jeopardy. As of 16:00 GMT, the Dow was down over 300 points, or 1.2%, while the S&P 500 fell 1.4% and the Nasdaq dropped 1.7%.

According to the Commerce Department, GDP declined by 0.3% in the first quarter, reversing from a 2.4% gain in Q4. The drop was fueled by a 41% jump in imports—likely driven by businesses rushing to beat tariff implementation—and weaker consumer and government spending tied to DOGE-related cuts.

Index Performance: Nasdaq Leads Declines

The Nasdaq was the weakest of the major indexes, pressured by tech and semiconductor stocks. The S&P 500 slipped further into the red for the month, and the Dow gave up most of April’s prior gains. Recession fears, policy uncertainty, and mixed corporate results added to the downside pressure.

Sector Watch: Tech and Discretionary Slide

Technology led sector losses, down 2.1%, followed by consumer discretionary, which fell 1.8% on concerns about weakening demand. Industrials and materials each dropped more than 1.3%. Defensive sectors such as healthcare and utilities also declined. Energy posted a modest 0.2% gain, supported by stable oil prices.

Stocks on the Move: Earnings Misses Hit Sentiment

Starbucks sank 7% on Tuesday after missing on earnings and reporting a 2% drop in U.S. same-store sales. Snap fell 14% after revealing a loss of one million North American users. Visa outperformed, gaining 2% on strong revenue and earnings, supported by a new $30 billion buyback.

Chipmakers were under pressure again Wednesday. Nvidia fell 2.3% after Super Micro Computer issued a weak revenue forecast and dropped 16%, dragging down broader AI-related names.

Earnings Ahead: Meta and Microsoft in Focus

After the bell, attention shifts to key earnings from Meta Platforms and Microsoft. Traders will be watching Meta for ad revenue trends and AI updates, while Microsoft’s report will give a read on cloud growth and enterprise spending. With tech under pressure, these results could influence Thursday’s market tone.

Looking Ahead

The GDP miss raised new questions about the strength of the economy just as markets were stabilizing. With jobs and inflation data still ahead, and trade policy uncertainty lingering, investors may remain cautious. Tech earnings tonight could either calm nerves—or add to the selling pressure.