Real gross domestic product (GDP) grew -0.3% on a quarter-over-quarter, seasonally adjusted annual rate, according to the Bureau of Economic Analysis. Consensus economist forecasts pegged last quarter’s real GDP growth at 0.4%, according to Dow Jones data, a stark decrease from the prior period’s 2.4% expansion.

The economy shrank 0.3% in the first three months of the year, a steep downturn from the pace of growth in 2024.

U.S. stocks are sinking following a discouraging report suggesting the U.S. economy may have shrunk at the start of the year, before most of U.S. President Donald Trump’s announced tariffs could take effect.

U.S. stocks began Wednesday with a thud after a report suggested the U.S. economy may have shrunk at the start of the year. But the big losses eased as the morning progressed in the latest sharp swings to smack Wall Street amid uncertainty about what President Donald Trump’s trade war will do to the economy.

U.S. stocks are falling following a report suggesting the U.S. economy may have shrunk at the start of the year.