"Do not be embarrassed by your failures, learn from them and start again."- Richard Branson
Richard Branson encourages us to view failure not as a setback, but as a stepping stone to growth. Embracing our mistakes allows us to refine our approach and move forward with greater wisdom.
Resilience is built by learning from missteps and having the courage to begin anew.
Market Wrap
GDP Shrinks, Markets Shrug
GDP Contracts Unexpectedly:
The U.S. economy shrank by 0.3% in the first quarter of 2025, marking the first contraction since early 2022. This decline was primarily driven by a 41.3% surge in imports as businesses accelerated purchases ahead of anticipated tariffs under President Trump's administration. The unexpected downturn raised concerns about a potential recession.
President Trump Attributes Economic Downturn to 'Biden Overhang':
Following the report of a 0.3% contraction in Q1 GDP, President Trump blamed the economic decline on residual effects from the previous administration. He dismissed concerns that his tariff policies were responsible, asserting that his trade strategies would eventually benefit the U.S. economy.
China Eases Tariffs on Select U.S. Goods:
In a move to alleviate trade tensions, China announced exemptions for certain U.S.-made goods from its 125% tariffs. This decision aims to ease trade relations and may positively influence specific sectors of the U.S. economy.
Private Payrolls Growth Slows:
According to the ADP National Employment Report, private-sector employment increased by only 62,000 jobs in April, down from a revised gain of 147,000 in March. This slowdown in hiring indicates that businesses may be exercising caution amid economic headwinds.
Global Stock Markets Rebound:
Global equities reached a four-week high as Wall Street extended its rebound, despite concerns about the U.S. economy contracting in the first quarter. This rally was driven by investor optimism and strong corporate earnings reports.
Copper Market Faces Surplus:
The International Copper Study Group forecasted a significant surplus in the copper market, anticipating an oversupply of nearly 500,000 metric tons through 2025 and 2026. This surplus is attributed to weak global demand, particularly influenced by U.S. tariff policies dampening international trade.
Meta Platforms Inc. shares rose 5% in after hours trading, after the company reported earnings that topped expectations, provided strong revenue guidance, and announced increased capital spending, signaling confidence in its growth trajectory.
Tesla Inc. shares declined 3.4% after news emerged of a self-driving venture between Alphabet's Waymo and Toyota, intensifying competition in the autonomous vehicle space and raising concerns about Tesla's market position.
QUALCOMM Inc. shares fell 6% in after-hours trading after the company reported better-than-expected earnings but issued a cautious outlook for the next quarter. The guidance, which projected revenue and earnings below analyst expectations, raised concerns about the impact of trade tensions and slowing demand in key markets.
Caterpillar Inc. shares fell 1% after the company reported first-quarter earnings that missed analyst expectations, citing reduced sales volumes and unfavorable pricing due to changes in dealer inventories. The company also flagged potential tariff-related costs of $250–$350 million in the second quarter, contributing to investor concerns.
KLA Corp. shares advanced 2% after the company reported quarterly earnings that surpassed forecasts, reflecting strong performance in its semiconductor process control segment.
Super Micro Computer Inc. shares plunged after the company issued a cautious investment outlook, raising concerns about future growth prospects amid a contracting economy and ongoing trade tensions.
Snap Inc. shares dropped following the release of a cautious investment outlook, which led investors to worry about the company's ability to sustain growth in a challenging economic environment.
Norwegian Cruise Line Holdings Ltd. shares fell after the company missed earnings forecasts, highlighting challenges in the travel industry and investor concerns over consumer spending amid economic uncertainty.
Unlock Exclusive Insights!
You can preview data for the Magnificent Seven now :
