(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Indexes down: Dow 1.73%, S&P 500 2.04%, Nasdaq 2.58%

*

Q1 GDP contracts, PCE slightly above estimates

*

SMCI plunges after Q3 forecast trim

*

ADP April figures miss expectations

(Updates after inflation data)

By Lisa Pauline Mattackal and Purvi Agarwal

April 30 (Reuters) - Wall Street's main indexes dropped

on Wednesday after data showed the economy contracted for the

first time in three years in the first quarter, deepening

concerns around the impact of U.S. tariffs and the global trade

war.

Private payrolls growth also slowed more than expected in

April, while the personal consumption expenditure index - the

Federal Reserve's preferred inflation gauge - rose slightly more

than expected in March on an annual basis.

Wednesday's reports join a series of data releases over

the month that have pointed to an increasingly uncertain outlook

for the U.S. economy, as the fallout from the Trump

administration's steep tariffs and erratic trade policy take

effect.

"Given the amount of damage that's been done to

businesses (and) consumer confidence, we could just be getting

started on seeing a continuation of these weaker numbers," said

John Luke Tyner, portfolio manager at Aptus Capital Advisors.

U.S. consumer spending jumped last month as households

rushed to buy motor vehicles to avoid higher prices and

shortages due to tariffs.

Traders are now pricing in a full percentage point interest

rate cut by the end of the year from the Fed.

Caterpillar ( CAT ) declined marginally, after gaining

premarket following its quarterly results.

At 10:03 a.m. ET, the Dow Jones Industrial Average

fell 699.90 points, or 1.73%, to 39,827.72, the S&P 500

lost 113.47 points, or 2.04%, to 5,447.36 and the Nasdaq

Composite lost 449.75 points, or 2.58%, to 17,011.57.

All S&P 500 sectors were in the red, with consumer

discretionary and information technology

shares down 3.6% and 2.3%, respectively.

The CBOE Volatility index, seen as Wall Street's fear

gauge, was up 3.53 points at 27.69, its highest in nearly a

week.

"Magnificent Seven" members Meta Platforms ( META ) and

Microsoft ( MSFT ) fell 2% and 3% ahead of their results, due

after markets close, that investors are watching closely for

clarity on the outlook for the tech sector and AI-focused

investments.

Fanning concerns about a pullback in investments into AI,

Super Micro Computer ( SMCI ) cut its third-quarter forecasts

due to delays in customer spending, while Snapchat parent Snap

said it would not provide a second-quarter financial

forecast.

Their shares fell more than 16% each.

Wall Street's indexes recouped some ground this month after

a sharp slump following the April 2 "Liberation Day" tariff

announcements, but are set for monthly declines.

The S&P 500 is set to snap its best winning streak since

November if losses hold through close.

Wednesday also marks 100 days since Trump took office.

Erratic changes in trade policies and uncertainty have roiled

markets over that period, offsetting initial optimism over the

administration's business-friendly policies.

"If you were looking for a playbook on how to slow a healthy

economy, (policy changes) seem like a good example," said Scott

Helfstein, head of investment strategy at Global X.

Among other stocks, Norwegian Cruise Line Holdings ( NCLH )

tumbled 10% after missing first-quarter earnings estimates.

Declining issues outnumbered advancers by a 7.61-to-1 ratio

on the NYSE and by a 4.77-to-1 ratio on the Nasdaq.

The S&P 500 posted 2 new 52-week highs and 3 new lows while

the Nasdaq Composite recorded 14 new highs and 57 new lows.