Weak GDP report and fears of recession contribute to stock market slump for Amazon, Meta, Alphabet.

From Yahoo Finance: 2025-04-30 13:38:00

The latest GDP report showed the U.S. economy shrank in Q1 2025, a surprise to economists. Concerns about tariffs and trade wars have fueled stock market volatility. Investors await further data to determine the true impact on the economy.

Economists fear a recession may be looming in 2025, with data showing weaker-than-expected GDP growth. Rising tariffs could spark inflation and lead to reduced consumer spending, potentially fueling a downturn. The economy’s trajectory will be closely monitored in the coming months.

Despite the GDP decline in Q1, the report revealed that the economy was impacted by increased imports ahead of tariffs. The accuracy of these estimates is not perfect, and revisions are expected in May. The potential recession status will be confirmed in July with the release of Q2 GDP figures.

Amazon, Meta Platforms, and Alphabet stocks fell on Wednesday due to weak economic news. A downturn could impact digital advertising spending and cloud services, affecting these companies. Long-term investors may find opportunities to buy quality stocks at discounted prices during economic downturns.

Investors are urged to consider buying shares of industry-leading companies like Amazon, Meta Platforms, and Alphabet, despite recent market dips. The potential for significant gains over the next few years remains strong, regardless of short-term economic fluctuations. Consider long-term investment strategies to weather market volatility.

Read more: Why Amazon, Meta Platforms, and Alphabet Slumped on Wednesday