🚀 US economy shrinks in Q1 2025

In partnership with

Unwind Naturally with Enhanced Relief Gummies

Feel the calm set in with these Enhanced Relief Gummies—crafted with 5mg THC + 75mg CBD for stress relief, reduced anxiety, and deep relaxation without the hangover.

Perfect for evenings when you need to truly unwind. Get 25% off your first order with code RLX25 and experience why this brand has over 48k 5-star reviews.

Shop & Relax Now

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. The U.S. economy unexpectedly shrank 0.3% in the first quarter of 2025 as businesses rushed to import goods ahead of President Trump’s new tariffs, with imports soaring 41.3%—the most outside of a pandemic since 1974—dragging down GDP despite solid domestic investment and modest consumer spending growth. While the contraction could reverse in future quarters, the report complicates the Fed’s outlook: inflation rose to 3.6%, but signs of slowing growth may pressure the central bank to cut rates. President Trump blamed Biden for the first-quarter economic contraction and defended his tariffs, claiming growth “will take a while” and urging Americans to “BE PATIENT!!!. Despite boasting of an impending boom and rising corporate investment, Trump’s attempt to pin the downturn on Biden contradicts economic data showing tariff fears, falling government spending, and weak job growth as the primary culprits. Critics called it a deflection as markets tumbled and warnings of a “Trumpcession” grew louder.

2. Nvidia CEO Jensen Huang warned that China is “not behind” the U.S. in AI, calling Huawei a “formidable” rival and emphasizing the race is neck-and-neck despite U.S. export controls. Speaking in D.C., Huang said U.S. restrictions—like the Trump admin’s recent ban on Nvidia’s H20 chip exports to China—may backfire by stifling U.S. innovation. He urged policies focused on accelerating AI development, not limiting competition. Meanwhile, Nvidia plans to invest $500B in U.S.-based AI infrastructure and begin onshore manufacturing, even as its stock continues to slump amid global uncertainty.

3. Private payrolls rose by just 62,000 in April—less than half the expected 120,000 and the weakest gain since July 2024—as employers pulled back amid growing uncertainty over President Trump’s tariff policies. Sectors like leisure and hospitality (+27,000), trade and transportation (+21,000), and construction (+16,000) added jobs, while education and health services lost 23,000. Wage growth for job-stayers slowed slightly, though job-changers saw a modest bump. Economists now look to Friday’s broader jobs report, which is expected to show 133,000 new jobs and an unchanged 4.2% unemployment rate.

4. Headlines

   1. Ford CEO Jim Farley said that a temporary easing of automotive tariffs is helpful, but that more permanent changes are needed to ensure the industry's success.

   2. Snap continued its decline falling 15% yesterday as investors are concerned about its ad business.

   _{* This is sponsored content.}

Are you looking to grow your business? Here is how I can help: 

📱Book a Strategy Call to get 1:1 feedback on your pitch, pitch deck and/or fundraising strategy. (If you need general startup advice, then reply to this email, and I’ll let you know if/how I can help.)

Onwards and Upwards,

Liam Gill