After the seismic shocks from President Trump's "Liberation Day" tariffs and the early corporate earnings trickle, the global economy entered a critical volatility phase. Here's everything important that unfolded since the last update.
🏢 Corporate Actions: Restructures, Warnings, and M&A Activity
➔ Tesla Halts U.S. Expansion Plans
Tesla announced it is pausing expansion of its new Gigafactory projects in the U.S., citing "supply chain unpredictability and import cost pressures." CEO Elon Musk hinted at relocating future investments outside North America if tariff disputes intensify.
➔ Walmart Issues Profit Warning
Walmart cut its profit forecast for the rest of 2025, warning that consumer spending is rapidly deteriorating. The company flagged "higher input costs" and "tariff-passed price increases" hurting volumes.
➔ Apple Delays Product Launches
Apple disclosed a 6–9 month delay in its next-gen iPads and MacBooks due to component shortages linked to Asia-Pacific tariffs.
➔ Bank of America Freezes Hiring
Following earnings, Bank of America announced a hiring freeze across non-critical functions, citing "macro uncertainties" and "credit tightening."
➔ Big M&A News: Blackstone Acquires Prologis Assets
In a major move, Blackstone agreed to purchase $14 billion worth of logistics centers from Prologis, betting on long-term e-commerce demand despite near-term turmoil.
📊 Economic Developments: Warning Lights Everywhere
➔ Consumer Sentiment at 12-Year Low
The University of Michigan's Consumer Sentiment Index crashed to 61.2, the lowest since 2013. Inflation fears, job insecurity, and recession concerns are driving consumer pessimism.
➔ Housing Market Cooldown Accelerates
New home starts fell by 15% in March (reported mid-April), reflecting the fastest slowdown since 2008. Builders are delaying projects as mortgage rates rise and demand softens.
➔ Manufacturing PMI Contracts
The U.S. Manufacturing PMI dipped to 47.8, signaling a second consecutive month of contraction. Companies cite "tariff-related input costs" and "order cutbacks" as key reasons.
➔ Global Ripple Effects Begin
Germany, South Korea, and Japan reported sharp drops in exports to the U.S., raising alarms about a global demand slump.
📉 Financial Markets: Another Rough Week
➔ Stock Markets Extend Losses
- Dow Jones: Down another 1,200 points this week
- S&P 500: Fell below 4,200 for the first time in 18 months
- Nasdaq: Officially entered a bear market (down 22% from peak)
➔ Gold Hits New High
Gold prices surged past $2,550/oz, reflecting massive inflows from investors fleeing equities.
➔ Bond Market Screams Recession
The 2-year/10-year Treasury yield curve inversion deepened to -89 basis points — the most inverted since the early 1980s recession period.
➔ Crypto Sees Temporary Bounce
Bitcoin briefly rallied 8% as a perceived alternative asset amid fiat currency instability, but volatility remains extreme.
🏛️ Political Reactions: Tensions Rise
➔ Fed Officials Signal Possible Rate Cuts
In a sharp pivot, several regional Fed presidents (notably from Atlanta and St. Louis) hinted at possible rate cuts in summer 2025 to counteract economic slowdown.
➔ Trade War Escalation Talk
China and the European Union hinted at possible retaliatory tariffs on American tech, automotive, and agricultural products. Markets are bracing for tit-for-tat escalation.
➔ Trump Defends Tariffs Amid Criticism
At a rally in Ohio, Trump doubled down, stating:
"We will bear short-term pain for long-term independence."
Economic advisors privately urge a more "nuanced" approach as GOP allies grow uneasy heading into the 2026 midterms.