(Updates with morning prices)

By Sanchayaita Roy and Sukriti Gupta

April 30 (Reuters) - Canada's main stock index fell on

Wednesday, as a contraction in the domestic and U.S. economies

intensified investor worries about the fallout from U.S.

President Donald Trump's tariff policies.

Toronto Stock Exchange's S&P/TSX composite index

was down 0.9% at 24,648.86 points.

Canada's gross domestic product contracted by 0.2% in

February on a monthly basis as activities across mining, oil and

gas and construction sectors shrunk.

Meanwhile, the U.S. economy contracted in the first

quarter, weighed down by a deluge of goods imported by

businesses eager to avoid higher costs due to Trump's trade

policy.

"It's (market sentiment) been much more affected by the

trade rhetoric over the past month but eventually that's going

to matter less and the economic data is going to matter more,"

said Josh Sheluk, Portfolio manager at Verecan Capital

Management.

Trump has argued that his tariffs would eventually lead to a

boom in the U.S. economy and that Americans should be patient.

Analysts expect GDP growth to return in the second quarter

as the initial deluge of import wanes, but see the economy going

back into red by the end of the year.

U.S. private payrolls growth slowed more than expected in

April, adding to a series of data that have indicated a grim

economic outlook.

Another set of data showed U.S. consumer spending increased

solidly in March, but that did little to change economists'

views that the U.S. economy had shifted into a lower gear.

On TSX, information and technology stocks led the

losses with a 2.4% fall. Blockchain farm operator Bitfarms ( BITF )

dropped 5.7%.

Energy stocks fell 1.6% as oil prices extended

declines and were set for their largest monthly drop in almost

three and a half years.

Investors also await results of major U.S. companies,

including some of the "Magnificent Seven" members, expected

later in the day.