From Investing.com: 2025-05-01 06:48:00

US Economy Shrinks in Q1, Inflation Still a Problem
The US economy unexpectedly contracted in the first quarter of 2025, falling by an annualized rate of 0.3% q/q. Despite consumer spending holding up, the main drag was a surge in imports due to businesses frontloading purchases before tariff hikes. Inflation remains sticky, with core PCE price index at 3.0% y/y in February. Job growth also slowed in March, raising stagflation concerns.

Trade Deal Hopes Lift Wall Street
Stocks initially fell on recession fears but rebounded after news of potential trade deals. White House Trade Representative hinted at upcoming agreements, boosting investor sentiment. Trump expressed optimism on trade talks, including with China. Market optimism returned, with major indices finishing higher.

Tech Earnings Impress, More on the Way
Strong tech earnings from Microsoft and Meta boosted US futures. Both companies beat estimates, with Microsoft’s cloud unit showing growth and Meta seeing strong ad revenue. Apple and Amazon are set to report earnings today, continuing the positive trend.

Dollar Climbs for a Third Day, Gold Sinks
The US dollar is rising for the third consecutive day on trade deal optimism, despite economic concerns. Gold is down by over 1.5% on the positive trade news and other agreements. The dollar’s strength is also impacting the yen.

Yen Down as BoJ Uncertain About Rate Hike Timing
The Bank of Japan kept rates steady, but lowered growth and inflation forecasts. Governor Ueda tied the timing of rate hikes to the outcome of trade wars, suggesting a cautious approach. The yen is weakening against the dollar, currently trading at 144.25.



Read more at Investing.com: Wall Street Whipsaws on Data and Trade Headlines, Yen Slides After BoJ