Sinking GDP weighs on markets

Negative GDP on both sides of the border pressured markets on Wednesday, though a late rally limited the damage. U.S. GDP shrank by 0.3% in Q1, the first contraction in three years, which mostly happened under Trump’s first 100 days. In contrast, U.S. GDP was +2.4% in Q1 2024. Markets plunged in pre-market trading and struggled for much of the session, though a late-day surge pushed the S&P into positive territory at 0.15%, the Dow 0.35% and the Nasdaq -0.09% or down 15 points.

Key names: Amcor -1.39%, Tesla -3.38%, Super Micro Computer -11.5%, Seagate 11.56% and Trane Technologies 8.45%. The U.S. 10-year yield held around 4.17% while Bitcoin shed US$345 to US$94,530.

Canada’s GDP contracted 0.2% in February compared to a 0.4% gain in Canada. The TSX recovered most of its session losses to close -0.13%. Nine sectors gained ground, led by staples, telcos and utilities while energy lagged the most. Major movers on Bay Street: Whitecap Resources -3.81%, Ivanhoe Mines -5.92%, New Gold 19.35%, Gildan 7.12% and Badger 6.45%. Gold gave up US$23 to US$3,924 while WTI sank US$2.20 to US$58.20.

📦 Amcor PLC (AMCR-N) -1.39%

🚗 Tesla Inc (TSLA-Q) -3.38%

💾 Super Micro Computer (SMCI-Q) -11.5%

💾 Seagate Technology (STX-Q) +11.56%

⚙ Trane Technologies (TT-N) +8.45%

🛢 Whitecap Resources (WCP-T) -3.81%

⛏ Ivanhoe Mines Ltd (IVN-T) -5.92%

🥇 New Gold Inc. (NGD-T) +19.35%

👕 Gildan Activewear Inc. (GIL-T) +7.12%

🧱 Badger Daylighting (BDGI-T) +6.45%