Tesla (TSLA) +2% Tesla shares bounced after a rough Monday, despite being down 36% in Q1 — the worst Q1 in company history. Investors are now eyeing its Q1 delivery report due Wednesday, with Street estimates hovering around 380,000 units . Analysts have been revising expectations lower amid backlash over Elon Musk’s role in Trump’s administration. Chinese EV Makers Up XPeng (XPEV) +1.6% : Delivered 33,205 vehicles in March — its fifth straight 30k+ month. NIO (NIO) +1.6% and Li Auto (LI) +1.4% also gained on strong March deliveries. Nvidia (NVDA) -0.6% Still under pressure after a 19.3% Q1 drop , its worst since 2022. Investor worries over AI spending, tech valuation, and trade tensions are weighing heavily. Johnson & Johnson (JNJ) -5% Fell after a Texas judge dismissed J&J’s third bankruptcy attempt to settle talc-related lawsuits via Chapter 11. PVH Corp (PVH) +18.9% Shares surged after Q4 earnings beat expectations ...
Key Takeaways:
US GDP rose 2.4% in Q4 2024, higher than the previous 2.2% estimate, signalling stronger-than-expected economic momentum at year-end.
The upgrade was driven by net exports, government spending, and business investment. However, consumer spending growth was revised down to 4%, still solid but less robust than initially reported.
The Fed’s preferred inflation gauge — core PCE — was revised down to 2.6%, a small but notable relief as markets brace for the February PCE report on Friday.
Another key indicator, Gross Domestic Income (GDI), surged 4.5%, marking a notable rebound from the previous quarter. The average of GDP and GDI stood at 3.5%, the best in a year.
Jobless claims remained steady, suggesting the labour market is still resilient, with continuing claims dropping to a one-month low.
Still, economic forecasts for 2025 remain cautious, with concerns growing over Trump’s aggressive tariff policies, which could weigh on growth and inflation in the coming months.
Summary:
The US economy ended 2024 stronger than expected, with solid business activity and easing inflation. But 2025 may pose challenges. With tariffs on the horizon and consumer sentiment turning cautious, investors are watching Friday’s PCE data and future policy moves closely for signs of what’s next.
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