GDP drop fuels volatile stock market as voters fear recession

(NewsNation) — The Dow Jones Industrial Average plunged significantly earlier rallying Wednesday aft quality broke that the system contracted by 0.3% successful the archetypal 4th of 2025.

The drop, a archetypal successful 3 years, came arsenic an exclusive NewsNation/Decision Desk HQ poll recovered that a ample bulk of U.S. voters, 82%, are disquieted astir a potential recession under the Trump administration.

If that were to happen, prices astatine the pump and market store could go unpredictable.

Demand usually slows during economical downturns, which could mean little prices. The bigger occupation is having capable wealth to wage for them.

“The biggest situation for Americans is, due to the fact that corporations are concerned, the likelihood are astir radical won’t get a wage rise that volition support up with inflation,” said Ted Jenkin, spouse astatine Exit Wealth.

A wide borderline of canvass respondents, 91%, said they are concerned astir inflation — and 59% said it is the biggest occupation for the nation.

Ellen Zentner, main economical strategist for Morgan Stanley, told the Associated Press that President Donald Trump's sweeping tariffs are playing a important relation successful the shrinking GDP.

"Even if today’s anemic GDP whitethorn person partially reflected companies trying to get up of tariffs, it was inactive a stagflation informing changeable implicit the bow of the economy,” Zentner said.

Much of Wednesday’s economical information raised concerns astir a weakening economy. A study connected the occupation marketplace from ADP suggested employers extracurricular the authorities whitethorn person hired acold less workers successful April than economists expected — little than half.

Along with regular expenses, status and semipermanent redeeming plans are delicate to volatile swings successful the banal market.

Short-term losses are communal successful downturns, but fiscal advisers mostly impulse those who don't program connected retiring successful the adjacent fewer years to stay calm.

During a NewsNation municipality hall Wednesday, Trump said the United States is in a modulation period — and that Americans should clasp tight.

“I deliberation you’re going to spot tremendous economical victories implicit the adjacent play of a year, similar acold greater than ever imagined … It volition hap overmuch faster than radical understand,” Trump told Chris Cuomo.

NewsNation's Anna Kutz and the Associated Press contributed.