📈 U.S. Economic & Stock Market Briefing for Wednesday, April 30, 2025 (Trading Day)

Mixed Market Close Amid Microsoft Earnings and GDP Decline

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📊 Market Summary

• NASDAQ: 17,446.34 (-0.09%)
• S&P 500: 5,569.06 (+0.15%)
• Dow Jones: 40,669.36 (+0.28%)
• USD/KRW Exchange Rate: 1,425.50 KRW (-0.59%)

On Wednesday, April 30, U.S. stock markets closed mixed as investors reacted to a surprising GDP contraction and ongoing trade tensions. The Dow and S&P 500 ended higher on late-session buying, while the Nasdaq slipped slightly. The Korean won strengthened significantly against the dollar, pushing the exchange rate to the low 1,420s.

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📰 Key Economic and Market News

1. Microsoft Beats Q1 Expectations, Stock Rallies 6%

Microsoft reported Q1 2025 earnings with revenue of $70.1 billion and net income of $25.8 billion ($3.46 per share), exceeding analysts’ expectations. Its cloud division, including Azure, grew by 21% YoY to $26.7 billion, leading the strong performance. Microsoft shares rose over 6% in after-hours trading.
(Source: Investopedia)

2. U.S. GDP Shrinks 0.3% in Q1 — First Contraction in 3 Years

The U.S. Department of Commerce reported a 0.3% annualized decline in real GDP for Q1 2025, marking the first contraction since 2022. Analysts attributed the decline to a surge in imports as companies rushed to stockpile goods ahead of new tariffs under the Trump administration’s trade policy.
(Source: Axios)

3. Trade Tensions Mount as Imports Soar

Trump’s “Day of Liberation” tariff policy prompted a rush among businesses to increase imports before higher tariffs took effect. As a result, Q1 imports surged by 41%, significantly dragging on GDP.
(Source: Axios)

4. Inflation Cools as PCE Data Nears Fed Target

March’s Personal Consumption Expenditures (PCE) price index rose 2.6% YoY, moving closer to the Federal Reserve’s 2% target. This cooling of inflation could influence the Fed's future rate decisions, potentially paving the way for a policy shift.
(Source: Investors.com)

5. Starbucks Misses Earnings, Shares Tumble

Starbucks reported weaker-than-expected earnings for Q1, citing a 1% drop in global same-store sales. The disappointing results sent shares tumbling by over 8% during trading.
(Source: Investopedia)

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💡 Investment Strategy Insights

• Monitor Trade Policy Developments: The Trump administration’s aggressive tariff measures are beginning to have macroeconomic consequences. Investors should assess industry-level impacts.
• Focus on Tech Earnings: Microsoft’s strong Q1 results provide a positive signal for tech, but broader performance in the sector must be carefully watched.
• Watch Inflation and Fed Policy: Cooling inflation may influence the Fed’s monetary policy, with rate cuts back on the table. Portfolio adjustments should reflect this potential shift.
• Caution in Consumer Sectors: Weak performance from consumer brands like Starbucks highlights emerging pressures on spending behavior. Approach consumer discretionary investments with care.

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U.S. markets on April 30 reflected a cautious but responsive mood. With GDP showing contraction and trade frictions mounting, investor attention is increasingly turning to earnings performance and the Fed’s next steps. Staying informed and flexible is key in navigating the volatile weeks ahead.