It’s been a choppy month in the markets, and today’s data added to the turbulence. The U.S. economy shrank slightly in the first quarter, and that spooked investors. The S&P 500 closed the month slightly negative. The fear? That we might be heading into a mild recession.
The U.S. economy contracted by 0.3% in the first quarter, marking its first decline since early 2022. This unexpected contraction was largely driven by a 41.3% surge in imports, as businesses rushed to bring in goods ahead of steep tariffs. Because imports are subtracted from GDP, this surge negatively affected overall economic output
Corporate earnings are all over the place. Starbucks missed expectations and its stock dropped nearly 6%. On the flip side, Berkshire Hathaway continues to hold strong and outperform—proof that steady fundamentals still matter.
Bottom line: Things are uncertain. Now’s a good time to stay diversified, avoid knee-jerk reactions, and keep an eye on long-term goals. Volatility is uncomfortable, but it’s also normal.