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First Solar (FSLR, Financials) shares fell sharply Wednesday as weak GDP data and escalating trade tensions under President Donald Trump rattled markets and raised recession concerns.
U.S. gross domestic product contracted at a 0.3% annual rate in Q1 2025, compared with a 2.4% gain in Q4 2024, according to the Commerce Department. Imports jumped 41%, consumer spending slowed, and government expenditures fell, contributing to the downturn.
The Dow Jones Industrial Average dropped 501 points (1.2%), the S&P 500 declined 1.5%, and the Nasdaq Composite fell 2% on the day.
Private payrolls increased by 62,000 in April, missing the Dow Jones estimate of 120,000, according to ADP.
First Solar cut its full-year outlook, citing Trump's tariffs as a significant economic headwind for its U.S. manufacturing operations. GE Healthcare (GEHC, Financials) also lowered guidance in response to tariff impacts.
Shares of Nvidia (NVDA, Financials) declined more than 2%, while Super Micro Computer (SMCI, Financials) plunged 16% on weak preliminary Q3 results, pressuring AI-related names.
The data and earnings revisions are raising alarms that Trump's tariff-centric trade agenda may already be weighing on the economy ahead of any finalized deals. High import volumes and weaker spending suggest businesses and consumers are reacting to growing uncertainty.
Investors will be closely watching upcoming trade announcements and any signals from the Federal Reserve as signs of economic stress grow more visible.
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This article first appeared on GuruFocus.