Business

US markets jittery as GDP and payroll data stoke economic uncertainty

Thursday, 1 May 2025 12:07AM UTC

Ahead of key economic reports on GDP and employment costs, US financial markets show caution with technology and housing sectors notably vulnerable. Mixed trading signals and subdued payroll growth add to investor unease about growth prospects.

US financial markets are exhibiting caution ahead of significant economic data releases, as key sectors including technology and housing show signs of vulnerability. Investors are closely monitoring reports on first-quarter GDP and employment costs, with market movements reflecting unease about economic prospects.

As trading unfolds, the SPDR S&P 500 ETF has declined by 0.4%, while the Invesco QQQ Trust, which is heavily weighted with technology stocks, slipped 0.7%. US stock futures presented mixed signals, with Nasdaq futures dropping by 0.6%, underscoring sector-specific concerns, particularly in technology.

Housing sector data indicate some cooling in market activity; mortgage applications have fallen by 4.2%, signalling potential stress in the housing market which is a vital component of the wider economy. In parallel, the ADP private payroll report revealed growth of 62,000 jobs, significantly below Bloomberg’s forecast of 115,000, suggesting subdued employment momentum.

Among individual companies, stock performances vary with notable volatility. Shares of Super Micro Computer fell sharply by 18% and Starbucks saw a decline of 9.3% following their recent earnings announcements. In contrast, Humana experienced a 5.3% rise in its stock price, buoyed by strong earnings results, standing out as a relative market outperformer in an otherwise cautious environment.

Commodity markets also reflect economic uncertainties, with West Texas Intermediate (WTI) crude oil prices sliding below $60 per barrel. This movement contributes to the overall market flux and signals adjustments in energy-related sectors.

The developments in US economic indicators are expected to have wide-ranging effects beyond domestic markets, potentially influencing global trade dynamics and monetary policies. Market participants are poised to respond to the forthcoming data, which could lead to changes in investment strategies and economic projections. The Finimize is reporting on these unfolding economic and financial trends.

Source: Noah Wire Services

More on this

https://www.reuters.com/markets/us/global-markets-view-usa-2025-04-30/ - This article discusses the U.S. economy's potential faltering ahead of newly implemented tariffs, with Wall Street banks forecasting contractions of up to 1.75% in first-quarter GDP. It also highlights a record-high trade deficit in March and a six-month low in job openings, contributing to a negative economic outlook.
https://apnews.com/article/bbad7ca16bceb8c35822d906b195f5d2 - This report details Wall Street's dramatic rebound from early losses, echoing the volatility of April. It mentions the S&P 500's seventh consecutive day of gains and notes that early trading was rattled by a report showing potential economic contraction, raising fears of stagflation.
https://www.reuters.com/markets/global-markets-wrapup-1-2025-04-30/ - This article covers global financial markets facing turbulence due to worsening economic data and fallout from U.S. tariff measures. It mentions a record trade deficit in March and consumer confidence at a near five-year low, with analysts raising recession probabilities to 50%.
https://www.ft.com/content/5a71b6dd-abb6-4888-8387-3e6747ca479e - This piece reports on the S&P 500's rebound despite disappointing economic data and corporate earnings. It notes the S&P 500's seventh consecutive day of gains and mentions that early trading was rattled by a report showing potential economic contraction, raising fears of stagflation.
https://www.reuters.com/business/us-stock-futures-tepid-ahead-data-storm-megacap-earnings-2025-04-30/ - This article discusses Wall Street's significant declines after data revealed the U.S. economy contracted in the first quarter for the first time in three years. It mentions the Dow Jones dropping 699.90 points (1.73%) and the S&P 500 falling 113.47 points (2.04%).
https://www.reuters.com/business/us-stock-futures-flat-data-earnings-test-looms-2025-04-28/ - This report covers U.S. stock index futures falling slightly ahead of major economic data releases and quarterly earnings reports. It mentions that market sentiment remains volatile due to uncertainty over the Trump administration’s trade policies, particularly with conflicting signals on U.S.-China negotiations.
https://news.google.com/rss/articles/CBMie0FVX3lxTE90RUZCOVpnTkZFQ1dfSU9ROVMwbHZVNlRSR0ZiaDN3VjZhMzBvaHBRRVBQby1wYUxfRm43c0xDZ0JkR2l3aldoQUI5dmsyTHZvUkhxNDg5MUNLc3FNbDFuQXV5eGhmX3NlRHlNQ1JYeVZYb2RWbkdVdjNuVQ?oc=5&hl=en-US&gl=US&ceid=US:en - Please view link - unable to able to access data

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The article references current market data (e.g., Q1 GDP monitoring, recent stock movements) without overt signs of dated information. However, absence of explicit publication date limits full verification.

Quotes check

Score: 7

Notes: No direct quotes requiring verification. Metrics like ADP jobs growth (62,000 vs. 115,000 forecast) and market figures align with typical financial reporting standards but lack source attribution.

Source reliability

Score: 6

Notes: The narrative concludes with 'The Finimize is reporting...', but full URL context is ambiguous. Finimize’s reliability is not directly verifiable here; absence of major outlet branding introduces uncertainty.

Plausability check

Score: 9

Notes: Claims (e.g., Super Micro Computer -18%, Starbucks -9.3%) match earnings-driven volatility patterns. Economic indicators (ADP payrolls, WTI prices) align with plausible recent market behaviour.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents plausible, timely market data consistent with typical financial reporting. While source clarity and date verification are limited, the absence of factual red flags supports cautious acceptance.

US economy
Stock market
Economic data
Technology sector
Housing market