Stocks Slide After Weak Gdp Data

Stocks Slide After Weak Gdp Data

Underwhelming data about gross domestic product in the globe's biggest economy during the first quarter of the year tugged down US stocks during today's midweek trading session.

Stocks Slide After Weak Gdp Data
Stocks Slide After Weak Gdp Data

From January to March, the US economy shrank 2.9%, exceeding projections issued by analysts and economists. Severe cold weather that regions of the nation endured during that period is partially culpable for the contraction. Durable goods orders dropped 1% last month, which also trumped projections for even results.

Just after 10 a.m. in New York, the Nasdaq moderately climbed 0.1%, a gain of 4.35 points to 4,354.74; the S&P 500 rose 0.14%, a rise of 2.68 points to 1,952.66; and the Dow edged up 0.09%, a lift of 15.25 points to 16,833.38. But, with the second quarter of the year ending next week, some indications demonstrate the economy has bounced back. Until then, weak indications prompt investors and traders to exercise caution.

A tale of two indices
The S&P set intraday highs on Tuesday while the Dow endured its sharpest drop in more than four weeks. Concerns are rapidly developing about ongoing tensions in Iraq between the Shiite Islam government and Sunni Islamic militants.

Amid concerns about the militants' growing presence, the anti-government fighters attacked one of Iraq's biggest air force bases. The first of President Obama's 300 advisors arrived in the Middle Eastern nation as part of an effort to determine the strength of Iraqi security, the state of the nation and methods of returning it to relative calm. Traders, investors and analysts are also keeping an eye on the price of oil, which is subject to spikes should supply lines be disrupted due to Iraqi strife.

Russia, Ukraine ceasefire in peril
Bloomberg reports pro-Russia separatists in Ukraine used a shoulder-fired missile to shoot down a government chopper, disrupting feuding parties' pact that was finalized on Monday. Nine government officials were killed.

Russian government energy and technology interests are targets for U.S. sanctions, three people told the news service. After firing the deadly missile, the militants hid in a nearby village, CNN reports. The strife between Russia and Ukraine has been ongoing since this past March.

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