NEW YORK, New York - U.S. stocks closed mixed Wednesday after it was revealed the economy contracted in the first quarter, while import costs rose. President Donald Trump who began waging the trade war soon after his inauguration, blamed former President Joe Biden for the downturn.

"This is Biden's Stock Market, not Trump's. I didn't take over until January 20th. Tariffs will soon start kicking in, and companies are starting to move into the USA in record numbers," the president posted on Truth Soical on Wednesday. "Our Country will boom, but we have to get rid of the Biden "Overhang." This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!" Mr Trump said.

While analysts had forecast 0.3 percent growth in quarter 1, the Commerce Department surprised with news of a 0.3 percent contraction, the first dip in three years.

U.S. Market Highlights

The Standard and Poor's 500 (^GSPC) inched up 8.23 points, or 0.15 percent, to close at 5,569.06, supported by gains in financial and industrial stocks.

The Dow Jones Industrial Average (^DJI) outperformed, climbing 141.74 points, or 0.35 percent, to 40,669.36, marking its third straight day of gains.

However, the tech-heavy Nasdaq Composite (^IXIC) bucked the trend, slipping 14.98 points, or 0.09 percent, to 17,446.34, as some megacap tech stocks faced profit-taking pressure.

Market Drivers

Investors remained cautious ahead of Thursday's U.S. inflation data, which could influence the Federal Reserve's interest rate path. Despite the mixed performance, market breadth was positive, with advancing issues outnumbering decliners on the NYSE.

Looking Ahead

Traders will closely monitor June's Consumer Price Index (CPI) report for clues on whether the Fed will cut rates later this year. Earnings season also kicks off later this week, with major banks set to report.

Global Forex Markets Update: Dollar Mixed as Euro and Pound Slip, Yen Weakens Further

Wednesday's foreign exchange session saw a mixed performance for the US dollar, with gains against some currencies but losses against others as traders assessed economic data and central bank policy expectations.

Major Currency Pairs

The euro (EUR/USD) fell 0.49 percent to 1.1329, pressured by lingering concerns over the Eurozone's economic outlook. Meanwhile, the British pound (GBP/USD) dropped 0.52 percent to 1.3329, extending losses amid uncertainty around UK monetary policy.

The US dollar (USD/JPY) strengthened 0.47 percent against the Japanese yen, hitting 142.96, its highest level in weeks as the Bank of Japan maintained its ultra-loose stance.

Commodity Currencies Show Resilience

The Australian dollar (AUD/USD) rose 0.34 percent to 0.6404, supported by stronger commodity prices. The New Zealand dollar (NZD/USD) also gained 0.15 percent, reaching 0.5938.

However, the Canadian dollar (USD/CAD) saw slight strength, with the pair dipping 0.35 percent to 1.3781 as oil prices provided support.

Swiss Franc Edges Lower

The US dollar (USD/CHF) climbed 0.19 percent to 0.8250, as the Swiss franc softened slightly amid subdued risk sentiment.

Market Outlook

Traders remain focused on upcoming economic data and central bank signals, particularly from the Federal Reserve and European Central Bank, for further direction. The dollar's mixed performance reflects shifting expectations on interest rate trajectories.

Global Markets Wrap: Mixed Performance Across Major Indices on Wednesday

Wednesday's trading session saw a mixed performance across global stock indices, with gains in Europe and Asia offset by slight declines in some key markets.

Canadian Market Update

North of the border, the S&P/TSX Composite Index (^GSPTSE) dipped 32.80 points, or 0.13 percent, to 24,841.68, weighed down by declines in energy and materials sectors.

UK and Europe

The FTSE 100 (^FTSE) rose to 8,494.85, gaining 31.39 points, or 0.37 percent, while Germany's DAX (^GDAXI) climbed 71.15 points, or 0.32 percent, to 22,496.98.

France's CAC 40 (^FCHI) advanced 0.50 percent, closing at 7,593.87.

However, the EURO STOXX 50 (^STOXX50E) dipped slightly, losing 1.68 points, or 0.03 percent, to settle at 5,160.22. The Euronext 100 (^N100) edged up 0.25 percent to 1,514.24, while Belgium's BEL 20 (^BFX) surged 1.21 percent to 4,429.51.

Asia and Oceania

In Asia, Hong Kong's Hang Seng Index (^HSI) rose 0.51 percent to 22,119.41, and Singapore's STI Index (^STI) gained 0.72 percent, closing at 3,832.51.

China's SSE Composite (000001.SS) slipped 0.23 percent to 3,279.03, while Japan's Nikkei 225 (^N225) climbed 0.57 percent to 36,045.38.

Australia's S&P/ASX 200 (^AXJO) climbed 0.69 percent to 8,126.20, while the broader All Ordinaries (^AORD) increased by 0.64 percent to 8,341.00.

India's S&P BSE Sensex (^BSESN) dipped marginally by 0.06 percent to 80,242.24, while Indonesia's IDX Composite (^JKSE) rose 0.26 percent to 6,766.79. Malaysia's FTSE Bursa Malaysia KLCI (^KLSE) outperformed, jumping 1.63 percent to 1,540.22.

New Zealand's S&P/NZX 50 (^NZ50) was a notable decliner, dropping 1.02 percent to 11,903.31. South Korea's KOSPI (^KS11) also fell 0.34 percent to 2,556.61.

Taiwan's TWSE Index (^TWII) inched up 0.01 percent to 20,235.03.

Middle East & Africa

Egypt's EGX 30 (^CASE30) rose 0.26 percent to 32,126.20, while Israel's TA-125 (^TA125.TA) gained 0.33 percent to 2,557.21.

In South Africa the Top 40 USD Net TRI Index (^JN0U.JO) added 0.13 percent, reaching 4,865.98.

Overall, markets showed cautious optimism amid varying economic signals, with European and select Asian indices leading gains while others faced mild corrections.

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