The U.S. GDP shrinkage in the first quarter has led to stock market volatility, and 360,000 Taiwanese mothers are facing the risk of depression.

Taiwan • Business • 04/30 15:30
The U.S. GDP shrinkage in the first quarter has led to stock market volatility, and 360,000 Taiwanese mothers are facing the risk of depression.

In the first quarter of 2025, the US GDP declined at an annualized rate of 0.3%, missing the expected 0.4% growth, causing a drop in the three major US stock indices. The Dow Jones dropped 237 points, the S&P 500 fell 61 points, and the Nasdaq plunged 361 points. A survey in Taiwan indicates that about 360,000 mothers exhibit signs of depression, highlighting the pressures from family and society. This article examines US economic data and market reactions, connecting them to the current situation of maternal stress in Taiwan, offering a comprehensive view of the intersection between global economics and mental health.

Key Updates

05/01 07:02

NVIDIA Uncommonly Rated as Sell by Analyst Jay Goldberg: Slowdown in AI Spending and China-US Geopolitical Risks Pose Challenges

NVIDIA, a US-based AI chip company, was recently rated as a "sell" by Seaport Research analyst Jay Goldberg, a rare occurrence, marking the first time in nearly two years. Goldberg pointed out that AI spending may slow down in the coming years, increased geopolitical tensions between the US and China, and the technical complexity of NVIDIA's system deployments being higher than that of traditional data centers pose challenges to the company's prospects. He lowered NVIDIA's target stock price to $100, below the Wall Street average target price of $161.59, making Seaport Research the only institution with a pessimistic view on the stock.

05/01 06:31

The U.S. stock market dropped sharply due to the triple whammy of GDP contraction, employment slowdown, and inflation pressures.

On April 30, 2025, the U.S. stock market saw significant volatility due to a 0.3% contraction in first-quarter GDP, slowing job growth, and ongoing inflationary pressures. Major indices dropped sharply in the morning session but rebounded in the afternoon after news of U.S.-China trade talks. The energy, steel, and financial sectors were the biggest losers, highlighting worries about an economic slowdown. Even though the market recovered by the end of the day, April's overall performance was poor, with the S&P 500 and Dow Jones indices falling for three straight months.

05/01 06:00

Analyst Jay Goldberg: Advanced Micro Devices and Broadcom could become the new favorites in AI chip investments, while Nvidia is facing pressure on market share and valuation.

Seaport Research Partners analyst Jay Goldberg has rated NVIDIA as a "sell" with a target price of $100 amidst a booming AI chip market, noting that its valuation already aligns with market expectations and faces pressure from customers creating their own chips. On the other hand, he is optimistic about AMD and Broadcom, giving them "buy" ratings with target prices of $100 and $230, respectively, due to their strategic moves and strong execution in the AI and data center markets, potentially making them more attractive investments.

04/30 22:31

Microsoft's Third Quarter 2025 Financial Report Surpasses Expectations: Cloud Services Drive Revenue to Record Highs, Stock Price Jumps Over 6% in After-Hours Trading

On April 30, 2025, Microsoft announced its financial results for the third quarter of the fiscal year 2025, reporting revenue of $70.07 billion, an increase of 13% year-over-year, and a net profit of $25.8 billion, which is an 18% increase year-over-year, both figures exceeded expectations. The cloud and AI sectors experienced strong growth, with Azure's revenue growing by 33% year-over-year. Consequently, Microsoft's stock price increased by over 6% in after-hours trading.

04/30 18:00

Eurozone's GDP increased by 0.4% in the first quarter, exceeding expectations, leading to a rise in European stocks; U.S. economy shrinks unexpectedly by 0.3%.

In the first quarter of 2025, the Eurozone's GDP increased by 0.4% from the previous quarter, exceeding expectations and boosting European stock markets. The U.S. GDP contracted by an annualized 0.3%, marking the first decline in three years, due to an increase in imports and a decrease in government spending. The Eurozone economy continued to grow with support from multiple countries, while the U.S. economy was under pressure due to a widening trade deficit and sluggish job growth.

04/30 15:30

The U.S. GDP shrinkage in the first quarter has led to stock market volatility, and 360,000 Taiwanese mothers are facing the risk of depression.

In the first quarter of 2025, the US GDP declined at an annualized rate of 0.3%, missing the expected 0.4% growth, causing a drop in the three major US stock indices. The Dow Jones dropped 237 points, the S&P 500 fell 61 points, and the Nasdaq plunged 361 points. A survey in Taiwan indicates that about 360,000 mothers exhibit signs of depression, highlighting the pressures from family and society. This article examines US economic data and market reactions, connecting them to the current situation of maternal stress in Taiwan, offering a comprehensive view of the intersection between global economics and mental health.

04/30 13:03

The 'Big Seven' U.S. Tech Giants Stock Rebound Falters: Profit Growth Slows for Companies Such as Microsoft

At the beginning of 2025, the "Seven Giants," a group of American tech giants, saw a rebound, but the latest financial reports show slower profit growth, rising valuation pressure, and a blow to market confidence. Microsoft's earnings report exceeded expectations, but its stock price fell due to a decline in free cash flow margin and uncertainty about AI investment returns. The "Seven Giants" overall profit growth rate fell from 52% in 2024 to 21.4% in 2025. Investors' risk appetites have shifted, with funds moving into gold and other sectors, and analysts are split on their ratings of the "Seven Giants."

04/30 07:05

U.S. stock index futures fell across the board: Dow Jones futures fell 105 points, pressure from tech stocks drags Nasdaq futures down.

On April 30, 2025, at 1:31 PM Taipei time, futures for the three major U.S. stock indices fell. Dow Jones Industrial Average futures fell 105 points to 40,553, down 0.26%; S&P 500 futures dropped 27.25 points to 5,556.5, down 0.49%; Nasdaq 100 futures fell 128 points to 19,514, down 0.65%. Investors are waiting for earnings reports from major U.S. tech companies and economic data, resulting in cautious market sentiment and subdued futures performance.

04/30 01:30

Early Days of President Trump's Second Term: Fast Money Traders Betting on Pharmaceuticals and Semiconductors, Avoiding Consumer Credit and Trade with China

In the first 100 days of President Trump's second term, the U.S. financial markets saw significant volatility. Corporate investments hit new highs, but the stock market performed poorly. Facing the tariff war and policy uncertainty, traders, such as hedge funds, adjusted their strategies, placing bets on big pharmaceutical companies, semiconductors, and international markets, while steering clear of consumer credit, transportation, and industries tied to trade with China. According to CNBC's "Fast Money," traders shifted to gold and overseas assets because of the dollar's depreciation and market uncertainty. Even though some companies invested in the U.S., the S&P 500 and Nasdaq still declined, showing doubts about the policy outlook.

04/30 01:01

The United States and India reached a trade agreement for the first time, leading the Dow Jones Index to jump 300 points, and both TSMC's ADR and Tesla's stock prices increased.

On April 29, 2025, U.S. Secretary of Commerce, Lutnick, announced that the Trump administration had completed its first trade agreement, pending approval from the counterpart government, with India possibly being the partner. This news drove U.S. stocks higher, with the Dow Jones index rising by 300 points and the stock prices of TSMC ADR and Tesla also increasing. U.S.-China trade tensions intensified, with both sides imposing significant tariffs on each other. The U.S. imposed tariffs of up to 245% on Chinese goods, while China responded with retaliatory tariffs of 125% on U.S. goods.

US First Quarter GDP Unexpectedly Turns Negative, First Contraction in Three Years

Preliminary data released by the U.S. Department of Commerce's Bureau of Economic Analysis (BEA) on April 30 shows that the real GDP of the United States in the first quarter of 2025 fell by an annualized 0.3%, marking the first quarterly contraction since the first quarter of 2022. This result contrasts sharply with the 2.4% growth in the fourth quarter of last year and is far below the economists' general expectation of a 0.4% increase.

According to official explanations, the GDP decline was mainly dragged down by a surge in imports and a reduction in government spending. Companies rushed to import raw materials and goods before the new round of tariffs by the Trump administration took effect, leading to a 41.3% surge in imports in the first quarter, with goods imports soaring by 50.9%. This "advance stocking effect" widened the trade deficit, having a nearly 5 percentage point negative impact on GDP.

Additionally, consumer spending growth slowed to 1.8%, also below the previous quarter's 4%. Although there was slight growth in business investment and exports, it could not offset the impact of reduced imports and government spending.

Stock Market Plummets, Investor Confidence Shaken

After the GDP data was released, the U.S. stock market opened with a significant decline on Wednesday (April 30). The Dow Jones Industrial Average fell 237.2 points, or 0.59%, opening at 40,290.41 points; the S&P 500 Index dropped 61.4 points, or 1.10%, to 5,499.44 points; and the tech-heavy Nasdaq Composite Index plunged 361.3 points, or 2.07%, to 17,099.98 points.

Market analysts noted that this downturn reflects investors' concerns about the economic outlook, especially amid the backdrop of the Trump administration's push for a new round of tariff policies and declining business confidence, raising concerns about future growth prospects. The Philadelphia Semiconductor Index also fell by 2.42%, indicating a significant impact on the technology and manufacturing sectors.

According to a report by USA Today, the VIX fear index rose by 15% on the day, indicating heightened market risk aversion. Some companies, such as Super Micro and Snap, issued warnings due to uncertainty about future revenue and the advertising market, with their stock prices falling by 17% and 16%, respectively.

Political Blame Game Intensifies, Trump Blames Biden

In response to the poor economic data and market reaction, U.S. President Trump posted on his social media platform Truth Social, emphasizing that this is "Biden's economy, not Trump's," and stated that he only took office on January 20, and the weak economy is a "mess" inherited from the previous administration. He stressed that the tariff policy has not yet fully taken effect, companies are accelerating their return to the U.S., and the economy will usher in "unprecedented prosperity" in the future, urging the public to "be patient."

However, the market and the business community reacted coolly to this statement. Many large companies, including leading firms in the aviation and automotive industries, have withdrawn their full-year forecasts, citing the high uncertainty brought by the tariff policy, making future predictions difficult.

360,000 Taiwanese Mothers at Risk of Depression, Social Pressure Emerges

Alongside the attention drawn by U.S. economic data, the current state of maternal stress in Taiwanese society has also come into focus. According to the latest survey by the TVBS Poll Center, since 2016, about 5% of mothers in Taiwan have shown signs of depression, translating to approximately 360,000 people. This proportion has not seen a significant decline since 2016, indicating that mental health issues have reached a "bottleneck" where further improvement is difficult.

Psychiatrist Yang Congcai noted that the main causes of maternal depression include economic pressure, lack of family support, and isolation in parenting, which are structural issues. Especially in urban areas, long commuting times and a strong sense of interpersonal alienation make mothers more likely to feel isolated and helpless.

The survey also shows that the proportion of depressive tendencies among single mothers is even higher, reaching 15% in 2025, three times that of married mothers. Yang Congcai suggests that the government should strengthen community psychological support networks, offer free psychological counseling and childcare resources, and promote policies such as "Mother's Respite Day" to help mothers relieve stress.

Intertwined Warnings of Economic and Mental Health

The unexpected contraction of the U.S. economy and the persistently high depression index among Taiwanese mothers, although belonging to different fields, jointly highlight the pressures faced by contemporary society on both economic and psychological levels. As global economic policies undergo drastic changes and the pressure on families and individuals continues to increase, finding a balance in policy design and social support systems has become a challenge that governments and societies worldwide must address.

References

People Also Ask...

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The drop in US GDP is impacting the stock market. What immediate effects does this have on investments?

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What specific measures does the Taiwanese government have to support mothers facing stress?

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The US GDP has contracted, and the stock market has taken a nosedive. How will this affect future investment strategies?