(Updates to U.S. market close)

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First-quarter U.S. GDP contracts

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S&P 500 registers seventh straight daily advance

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Crude notches biggest monthly decline in 3 1/2 years

By Stephen Culp

NEW YORK, April 30 (Reuters) - U.S. stocks pulled a

late-session rebound on Wednesday and oil prices logged their

biggest monthly drop in 3-1/2 years as investors parsed news of

the first U.S. economic contraction since 2022.

All three major U.S. stock indexes recovered from a sharp

selloff earlier in the day, with the S&P 500 and the Dow

flipping positive just minutes ahead of the closing bell.

The tech-laden Nasdaq ended modestly lower.

The S&P 500 and the Dow lost ground in April, while the

Nasdaq posted a small monthly gain.

"The market's action ... is reflective of an economy that's

probably going to be struggling as the year progresses," said

Chuck Carlson, CEO of Horizon Investment Services in Hammond,

Indiana.

U.S. gross domestic product contracted in the first quarter,

largely due to a surge in imports to avoid expected tariffs.

U.S. President Donald Trump blamed his Democratic predecessor

Joe Biden, and said his tariffs would eventually bring a booming

economy.

The reversal "may be a result of people digesting some of

these numbers and trying to put them into context," Carlson

added.

"Was it that bad? Are we on the precipice of a recession?

Markets are trying to evaluate that and put into some context,"

Carlson said.

The ongoing, multi-front trade war continues to cloud U.S.

corporate earnings season, with companies increasingly pulling

or reducing guidance due to tariff uncertainties.

Wall Street pared losses after the release of more upbeat

economic indicators. The Personal Consumption Expenditures (PCE)

price index was unchanged on a monthly basis and consumer

spending was stronger than expected.

Of the "Magnificent Seven" group of artificial

intelligence-related megacap companies, Meta Platforms ( META )

and Microsoft ( MSFT ) are expected to post results after the

bell.

The Dow Jones Industrial Average rose 141.74 points,

or 0.35%, to 40,669.36, the S&P 500 rose 8.23 points, or

0.15%, to 5,569.06 and the Nasdaq Composite fell 14.98

points, or 0.09%, to 17,446.34.

European stocks ended a choppy session higher as investors

mulled key data and corporate earnings. But the STOXX 600

registered a second consecutive monthly loss due to

tariff-related uncertainties.

MSCI's gauge of stocks across the globe rose

1.56 points, or 0.19%, to 832.90.

The pan-European STOXX 600 index rose 0.46%, while

Europe's broad FTSEurofirst 300 index rose 9.45 points,

or 0.45%.

Emerging market stocks rose 5.67 points, or 0.51%,

to 1,111.67. MSCI's broadest index of Asia-Pacific shares

outside Japan closed higher by 0.88%, to 580.65,

while Japan's Nikkei rose 205.39 points, or 0.57%, to

36,045.38.

The dollar held its gains after a swath of mixed U.S.

economic data and as trade tensions eased.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.51% to 99.68, with the euro down 0.58% at $1.132.

Against the Japanese yen, the dollar strengthened

0.52% to 143.08.

Sterling weakened 0.63% to $1.3322.

The Mexican peso weakened 0.32% versus the dollar at

19.616.

The Canadian dollar strengthened 0.33% versus the

greenback to C$1.38 per dollar.

Benchmark U.S. Treasury yields seesawed to a lower close amid

choppy trading. They inched 2 basis points lower to 4.156%, from

4.174% late on Tuesday.

The 30-year bond yield rose 2.5 basis points to

4.6734% from 4.648% late on Tuesday.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

fell 5.3 basis points to 3.605%, from 3.658% late on Tuesday.

Oil prices plunged further, logging their largest monthly

drop in nearly 3-1/2 years as Trump's trade war eroded the

demand outlook.

U.S. crude fell 3.66% to settle at $58.21 per barrel,

while Brent settled at $63.12 per barrel, down 1.76% on

the day.

Gold prices dipped in opposition to the dollar.

Spot gold fell 0.65% to $3,294.59 an ounce. U.S. gold

futures fell 0.72% to $3,295.00 an ounce.