The meltdown over President Trump’s tariff back-and-forth isn’t just...
The meltdown over President Trump’s tariff back-and-forth isn’t just relegated to the stock market anymore. Now, macroeconomic data proves what beauticians and nightclubbers already knew: the US economy is indeed contracting.
On Wednesday, the Commerce Department reported that gross domestic product (GDP) decreased 0.3% in the first quarter of 2025, significantly below the 0.4% increase economists had projected. That’s a steep decline from Q4’s 2.4% growth, and marks the first time GDP has turned negative since all the way back in 2022.
As big-box retailers warned us, shoppers aren’t feeling spendy, but they were still willing to open their wallets before tariffs took effect. Consumer spending, which accounts for roughly 70% of the economy, rose 1.8% in Q1—its slowest increase since mid-2023, but far from a catastrophic downturn.
Companies were also in a hurry to get ahead of tariffs: Imports jumped 41.3% for the quarter, while exports rose only 1.8%. That trade imbalance, combined with a cut in federal spending from Musk’s DOGE efforts, weighed on GDP, according to the Commerce Department.
However, if this is how the numbers look now, just wait until the full range of tariffs is fully implemented.
After some contentious last-minute tweaking, the US and Ukraine yesterday ...
After some contentious last-minute tweaking, the US and Ukraine yesterday signed an “economic partnership agreement” that grants the US access to Ukraine’s valuable rare earth minerals and establishes a joint investment fund for the two countries. President Trump had pushed for the deal, framing it as a way for Ukraine to pay the US back for its aid in repelling Russia’s invasion. It wasn’t clear if Trump would continue that aid—and the US has pushed for a peace deal that would cede some Ukrainian territory to Russia—but the agreement shows the administration is committed to “a free, sovereign and prosperous Ukraine over the long term,” US Treasury Secretary Scott Bessent said.
SCOTUS seems poised to allow religious charter schools. The...
SCOTUS seems poised to allow religious charter schools. The Supreme Court heard oral arguments yesterday in a case over whether Oklahoma’s charter school program, which provides public funds to privately run schools, can include a Catholic school. Most of the conservative justices appeared open to permitting the country’s first-ever religious charter school, with Justice Brett Kavanaugh saying religious people and institutions cannot be treated as “second class.” The three liberal justices, meanwhile, seemed more skeptical of redrawing the boundaries between church and state. Chief Justice Roberts, who seemed more on the fence, could be the deciding vote, or the case could end up at a 4–4 stalemate, as Justice Amy Coney Barrett opted to recuse herself from the case.
Nvidia CEO Jensen Huang warned that China is “not behind” the US in artificial intelligence and that China’s Huawei is “one of the most formidable technology companies in the world.” His remarks came after Huawei reportedly supplied AI chips to Chinese companies blocked from ordering Nvidia’s by new US export restrictions.
A federal judge ordered the release of Mohsen Mahdawi, a Columbia University student and organizer of pro-Palestinian campus protests, who was arrested at his final US citizenship interview.
Visa is partnering with AI chatbot-makers to make your credit card work with AI agents, which its CFO said could be “transformational, on the order of magnitude of the advent of e-commerce itself.”
The NFL fined the Falcons $250,000 and its defensive coordinator Jeff Ulbrich $100,000 over the prank phone call Ulbrich’s son made to Shedeur Sanders during the draft after seeing the quarterback’s phone number on his father’s iPad.
U.S. crude stockpiles draw unexpectedly on export, refinery demand: EIA
U.S. crude oil stockpiles...
U.S. crude oil stockpiles fell unexpectedly last week on higher export and refinery demand, while gasoline drew down for a ninth straight week, the Energy Information Administration said on Wednesday.
Crude inventories fell by 2.7 million barrels to 440.4 million barrels in the week ended April 25, the EIA said, compared with analysts’ expectations in a Reuters poll for a 429,000-barrel rise.
Crude stocks at the Cushing, Oklahoma, delivery hub for futures rose by 682,000 barrels in the week, the EIA said.
Gasoline stocks fell by 4 million barrels in the week to 225.5 million barrels, the EIA said, compared with forecasts for a 1 million-barrel draw.
The gasoline draw was the ninth consecutive weekly fall, the longest declining streak in the world’s top fuel-consuming nation since an 11-week slump that ended in June 2022, data showed.
Distillate stockpiles, which include diesel and heating oil, rose by 900,000 barrels in the week to 107.8 million barrels, versus expectations for a 1.6 million-barrel drop, data showed.
Oil settles lower, posts steepest monthly decline since 2021
(Reuters) - Oil prices settled down on Wednesday and recorded the largest...
(Reuters) - Oil prices settled down on Wednesday and recorded the largest monthly drop in almost 3-1/2 years after Saudi Arabia signaled a move toward producing more and expanding its market share, while the global trade war eroded the outlook for fuel demand.
Brent crude futures settled down $1.13, or 1.76%, lower at $63.12 a barrel. U.S. West Texas Intermediate crude futures dropped $2.21, or 3.66%, to close at $58.21, the lowest settlement since March 2021.
For the month, Brent settled down 15% and WTI was down 18%, the biggest monthly percentage declines since November 2021.
Both benchmarks slumped after Saudi Arabia, one of the world's biggest oil producers, signaled it was unwilling to prop up the oil market with further supply cuts and could handle a prolonged period of low prices.
"It raises concern that we could be headed towards another production war," said Phil Flynn, senior analyst with Price Futures Group. "Are the Saudis trying to send a message that they are going to get back their market share? We'll have to wait and see."
