US stocks took a breather on Wednesday, pausing a two-day rally, even as the Israel-Iran ceasefire continued to hold. The Nasdaq Composite advanced over 0.3 per cent, the Dow Jones Industrial Average declined over 0.2 per cent, and the S&P 500 ended flat.

Meanwhile, the US economy contracted more than previously estimated in the first three months this year, with consumer spending and exports weaker than expected. US gross domestic product – the nation’s output of goods and services- decreased at an annual rate of 0.5 per cent in the first quarter, according to the third estimate released today by the US Bureau of Economic Analysis, down from an earlier estimate of a 0.2 per cent decline. The January to March drop in GDP reversed a 2.4 per cent increase in the last three months of 2024 and marked the first time in three years that the economy contracted. Also, the number of Americans filing new applications for jobless benefits fell last week. According to Labour Department data, initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 2,36,000 for the week ended on 21st of June.