New York: US stocks had a mixed close midweek after the US economy surprisingly shrank in the first quarter, raising fears of a recession, and Donald Trump hinted at a trade deal with China. The S and P 500 gained 0.15%, or 8.23 points, to close at 5,569.06. The Dow Jones Industrial Average rose 0.35% to 40,669.36. On the other hand, the Nasdaq fell 0.09% to 17,446.34.

According to Anadolu Agency, US gross domestic product (GDP) contracted 0.3% in the first quarter, despite forecasts of a 0.2% rise, as reported by the Bureau of Economic Analysis. The contraction was attributed primarily to "an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending."

Trump said Wednesday that contraction in the US economy "has nothing to do with tariffs." He emphasized that the current economic situation is a result of the previous administration's policies, stating, "This is Biden's Stock Market, not Trump's. I didn't take over until January 20th." He expressed optimism about future economic growth, saying, "when the boom begins, it will be like no other."

The president further commented on China's economic condition, asserting that it is "doing poorly" because the US is not purchasing its products. He suggested that Chinese factories are closing due to the absence of fair-trade practices, claiming, "They're sending boats, the biggest boats in the world ... and they're turning around in the Pacific Ocean."

Despite the tough rhetoric, positivity returned to the markets after Trump expressed hope for improved relations with Beijing. He stated, "At a certain point, I hope we're going to make a deal with China," adding that he wants China to do well but insists on fair treatment.

On the other macroeconomic data side, personal consumption expenditures (PCE) in the US rose 0.7% month-on-month to $134.5 billion in March, surpassing expectations. The Fed's inflation indicator, core personal consumption index, was up 2.6% on an annual basis, matching estimates.