Watch Live: Trump provides comments on American investments because the economy shrinks slightly

New York (AP) -The US shares began on Wednesday after a report suggested that the US economy may have shrunk at the beginning of the year. But the big losses were in the latest sharp fluctuations after Smack Wall Street in the middle of the uncertainty about what President Donald Trump's trade war will do with the economy.

Trump is supposed to put comments in investments in the USA at 4:00 p.m. ET. Watch the player above.

The S&P 500 had declined by 1% in lunch and on the right track to break a six -day winning streak. The Dow Jones Industrial Average decreased by 271 points or 0.7% from 11:30 a.m., and the NASDAQ composite was 1.4% lower.

They used to be on the right track for much worse losses when the S&P 500 decreased by up to 2.3% and the Dow fell by 780 points. According to the report on the US economy, which did not briefly do the expectations of the economists, they dropped a sharp turnaround from their solid growth pace at the end of last year.

Importers hurried to bring products into the country before the tariffs could increase their prices, which contributed to pulling the country's entire gross domestic product.

Such data increase the risk of a worst case scenario as a “stagflation” in which the economy stagnates, but inflation remains high. Economists fear it because the Federal Reserve has no good instruments to fix both problems at the same time. If the Fed would try to help you adapt the interest rates, this would probably make the other problem worse.

“Even if today's weak GDP partly companies that try to reach the tariffs partly, it was still a stagflation warning shot about the bow of the economy,” said Ellen Zentner, chief management strategist for Morgan Stanley Wealth Management.

However, the financial markets were given better news later in the morning than in a report the inflation measure states that the Fed prefers to slow down in March. Inflation slowed down to 2.3%, closer to the goal of the Fed 2%, compared to 2.7%in February. Shares more than halved their losses according to the encouraging report.

However, a large part of the economic data on Wednesday expressed concerns about a weakening economy. A separate report on the labor market of ADP suggested that employers outside the government may have hired far fewer employees in April than the economists expected less than half.

It is discouraging because a relatively solid labor market was one of the lines and fishing points that keep the US economy stable. A more comprehensive report on the entire labor market of the US government will arrive on Friday.

The reports on Wednesday to worry that Trump's trade war could bring the US economy into a recession. The on-a-off-over rollout of the president of the president has already created deep uncertainty about what will come, which could cause damage.

The uncertainty led to historical fluctuations on the financial markets, from stocks to bonds to the value of the US dollar, which confiscated investors until April. At the beginning of this year, the S&P 500 fell by almost 20% under the all -time high, with scary headlines to warn for a point before the worst of April since the global economic crisis.

However, the uncertainty was two -sided and hopes that Trump may give in some of his tariffs and reach trade agreements with other countries, helped the S&P 500 to regain a large part of his losses. April is said to end April with a loss of less than 2%, which would be milder than March, and 10.4% is below its record.

As expected winning reports from large US companies, Seagate technology has increased by 9.6%in one of the greatest profits on Wednesday after the manufacturer of the parade data storage was joined.

However, potentially discouraging trends in the artificial intelligence industry contributed to compensating for the profits for storage makers. The AI ​​shares have withdrawn sharply because their prices were shot too high in previous years when madness in the industry broadly led to repeated records.

Super Micro computer warned that some customers delayed the purchases in the last quarter, which caused the manufacturer of servers used in AI and other computing to reduce its forecast for sales and profits. The share fell by 15.3% for the greatest loss of the S&P 500.

Other AI-related stocks also fell back, including a decrease of 2.5% for Nvidia. Because the chip company is so large that its loss made it the heaviest weight of the S&P 500.

Starbucks fell 7%after the coffee chain could remain the forecasts of the analysts for sales and profit forecasts in the last quarter. Starbucks recorded his first quarterly turnover in more than a year, but admitted that his turning effort is far from complete.

The financial return on the bond market kept relatively stable. The return of the 10-year Ministry of Finance was 4.19% late Tuesday to 4.17%.

The returns have largely dropped since a troubling, unusual sprint at the beginning of this month. This ascent had suggested that investors may have lost trust in the reputation of the US bond market as a safe place to park cash.

The indices in Europe and Asia were mixed in the stock markets abroad.

AP Business authors Matt Ott and Elaine Kurtenbach contributed.