U.S. stocks are sinking following a discouraging report suggesting the U.S. economy may have shrunk at the start of the year, before most of U.S. President Donald Trump’s announced tariffs could take effect.

U.S. stocks began Wednesday with a thud after a report suggested the U.S. economy may have shrunk at the start of the year. But the big losses eased as the morning progressed in the latest sharp swings to smack Wall Street amid uncertainty about what President Donald Trump’s trade war will do to the economy.

Simply sign up to the US equities myFT Digest -- delivered directly to your inbox. Wall Street stocks fell on Wednesday morning after weak US growth data fuelled a broad based sell-off driven by a flurry of weak corporate earnings.