U.S. stocks closed mixed on Wednesday, wrapping up a turbulent April marked by economic contraction and trade policy uncertainty.Â
The S&P 500 rose 0.15%, the Nasdaq Composite lost .086%, and the Dow Jones Industrial Average gained 141 points after new data showed the U.S. economy shrank for the first time since 2022.
According to the Commerce Department, first-quarter GDP fell at a 0.3% annualized rate, reversing a 2.4% gain from the previous quarter.Â
The contraction was partly attributed to a 41% surge in imports as businesses stockpiled ahead of President Trumpâs new tariffs.Â
Consumer spending also slowed to its weakest pace in over a year, and government expenditures declined, further dragging on growth.
You might also like:Coinbase to Supreme Court: IRS crypto dragnet was unconstitutional
Tariff uncertainty
Markets had rallied earlier in the month after Trump paused some tariffs and hinted at trade deals with countries like India. But renewed volatility returned as investors digested the weak economic data, inflationary concerns, and lack of clarity on trade negotiations.Â
Aprilâs losses follow a sharp drop after Trumpâs April 2 announcement of âreciprocalâ tariffs, which sent the S&P 500 down more than 11% at one point.
On Truth Social, Trump sought to shift blame for the economic slide, writing, âThis is Bidenâs Stock Market, not Trumpâs,â and claimed a âBiden Overhangâ was behind the poor numbers. He urged patience, saying his policies would take time to deliver results.
The stock market under Trumpâs second term has posted one of the weakest performances for any presidentâs first 100 days in modern history.Â
Analysts point to continued policy uncertainty as a primary cause. âThis is very clearly brought on by the uncertainty surrounding the tariffs, period,â said Kelly Bouchillon of Sound View Wealth Advisors.
Meanwhile, major companies like First Solar and GE HealthCare cut forecasts due to tariff-related headwinds. Nvidia shares also slipped, following disappointing results from Super Micro Computer.
You might also like:Rippleâs $4 â $5b offer to acquire Circle is too low: Bloomberg
Once one of the cheapest nations to mine Bitcoin in, Kuwait has cracked down on the practice, citing rising electricity demands amid an escalating energy crisis.
Crypto miners are once again facing regulatory pressure due to their energy use. On Thursday, May 1, Kuwait initiated a crackdown on crypto mining sites, accusing them of being a major strain on the nationâs electric grid.
You might also like:Bitcoin mining expansion in U.S. at risk as tariffs hit equipment imports
According to the countryâs interior ministry, the country started a widespread operation targeting homes that engaged in crypto mining. Local media reported that the sweep resulted in investigations of over 60 individuals suspected of engaging in crypto mining.
Crypto mining operations âconstitute an unlawful exploitation of electrical power ⦠and may cause outages affecting residential, commercial and service areas, posing a direct threat to public safety,â the ministry said.
Kuwait struggles with rising energy consumption
The move comes as the nation faces recurring blackouts, caused by rapid population growth and rising temperatures. In May, temperatures range from 32°C (90°F) to 39°C (102°F), placing major strain on the electric grid. Widespread air conditioning use is a significant contributor to overall electricity demand.
You might also like:Kuwait warns against illegal crypto mining after over 1,000 sites exposed in nationwide probe
At the same time, Kuwait ranks within the top 20 countries in the world with the cheapest electricity. According to one report, electricity in Kuwait costs just 2.9 cents per kilowatt-hour, much lower than in most industrialized countries.
Because electricity is one of the most important inputs in proof of work mining, miners in places like Kuwait are more competitive than in many other countries. This has made it an attractive nation for crypto miners, coming out as one of the cheapest places to mine crypto.
While crypto mining was not the only factor contributing to high energy use, Kuwait was not the only country that banned the practice. Earlier, Russia and China, both countries that boast cheap energy, banned the practice. Russia cited strains on the electric grid, while China banned mining due to its commitment to a green energy transition.
You might also like:The $12,000 vs $300,000 Bitcoin â why where you mine matters more than ever