US stock markets experienced a dramatic downturn on Wednesday after fresh economic data revealed a 0.3% contraction in GDP during the first quarter of 2025. This development has raised the probability of a recession to a significant 74%, according to investor sentiment and Wall Street models. The Commerce Department released these figures, confirming that the economy shrank between January and March, marking the first negative quarter since early 2022. The contraction likely poses challenges for President Trump’s second term as he embarks on his new economic agenda, particularly given the impact of trade wars already in place. Analysts had anticipated a growth surge following the impressive 2.4% increase in GDP during Q4 2024. However, this projection was significantly disrupted by rising import volume in anticipation of Trump’s tariffs, which took effect in April. Imports soared 41.3%, with goods alone jumping 50.9%, negatively impacting the GDP total. Export growth remained meager at a mere 1.8%. As a result, the economy appeared significantly weaker than anticipated. Stock markets reacted swiftly, with the Dow Jones Industrial Average plummeting by 615 points, representing a decline of approximately 1.5% . The S&P 500 followed suit with a drop of 2%, and the Nasdaq Composite suffered a steep loss of 2.6%. As a consequence, April closed in red, leaving any lingering hopes for an economic rebound dashed. Trump’s efforts to implement new economic strategies were met with mixed reactions. His post on Truth Social claimed the slowdown was due to a