BoykoWealth.com — Automated Daily Report on World Macroeconomic News for May 2, 2025
A comprehensive summary of the news, covering GDP, inflation, unemployment, consumer confidence, equity markets, fixed income and interest rates, commodities, currencies, economic indicators, geopolitical developments, and new technology news.
GDP: The U.S. GDP growth for Q1 2025 was reported at 1.1%, a slight decrease from the previous quarter’s 1.4%. This slowdown is attributed to weaker consumer spending and a decline in business investments. In Europe, the Eurozone’s GDP grew by 0.3% in Q1 2025, reflecting a modest recovery from the stagnation seen in late 2024. Meanwhile, China’s GDP growth for Q1 2025 was robust at 4.5%, driven by strong industrial output and increased consumer spending.
Inflation: The U.S. Core PCE Price Index, the Federal Reserve’s preferred inflation measure, rose by 4.6% year-over-year in April 2025, slightly down from 4.7% in March. This indicates a gradual easing of inflationary pressures. In the Eurozone, inflation remained steady at 5.2% in April, with energy prices continuing to be a significant contributor. China’s inflation rate for April was reported at 2.1%, reflecting stable consumer prices.
Unemployment: The U.S. unemployment rate for April 2025 remained unchanged at 3.5%, indicating a stable labor market. The Eurozone’s unemployment rate also held steady at 6.8%, while China’s unemployment rate decreased slightly to 5.1%.
Consumer Confidence: U.S. consumer confidence improved in April 2025, with the Conference Board’s index rising to 108.8 from 107.1 in March. This increase reflects growing optimism about the economy and job market. In Europe, consumer confidence remained subdued, with the European Commission’s index at -10.4, indicating persistent concerns about economic stability. China’s consumer confidence index rose to 122.5, reflecting strong consumer sentiment.
Equity Markets: U.S. stock markets closed higher on May 1, 2025, with the Dow Jones Industrial Average rising 1.39% to 41,317.43, the S&P 500 gaining 1.47% to 5,686.67, and the Nasdaq Composite climbing 1.51% to 17,977.73 [1] [2]. European markets also saw gains, with the STOXX 600 up 0.4% and the FTSE 100 rising 0.3%. In Asia, the Nikkei 225 increased by 0.5%, while the Shanghai Composite rose 0.6%.
Corporate Actions and Earnings: Meta Platforms Inc. reported first-quarter 2025 earnings of $6.43 per share, exceeding the Zacks Consensus Estimate by 23.18% and marking a 36.5% year-over-year increase [2]. Revenues reached $42.31 billion, up 16.1% year-over-year [2]. Microsoft Corp. reported third-quarter fiscal 2025 earnings of $3.46 per share, beating estimates by 8.13% and reflecting a 17.7% year-over-year increase [2]. Revenues were $70.06 billion, up 13.3% year-over-year [2].
Trending Industry Update: The technology sector continues to lead market gains, driven by strong earnings from major companies like Meta and Microsoft [2]. The energy sector saw mixed results, with Chevron reporting lower-than-expected earnings due to legal reserves and tax charges [3]. However, ExxonMobil exceeded expectations with strong quarterly results.
United States: The U.S. economy showed signs of resilience despite a slight GDP slowdown. The labor market remains strong, and consumer confidence is improving. The Federal Reserve is closely monitoring inflation and may adjust interest rates accordingly.
Europe: The Eurozone’s modest GDP growth and stable inflation indicate a gradual recovery. However, consumer confidence remains low, reflecting ongoing economic uncertainties. The European Central Bank is expected to maintain its accommodative monetary policy to support growth.
Asia: China’s strong GDP growth and improving consumer confidence highlight the country’s economic resilience. The government continues to implement policies to boost domestic consumption and industrial output. Japan’s economy is also showing signs of recovery, with steady GDP growth and a stable labor market.
Fixed Income and Interest Rates: U.S. Treasury yields remained stable, with the 10-year yield at 3.2%. The Federal Reserve is expected to maintain its current interest rate policy, with potential adjustments based on inflation data. In Europe, bond yields were mixed, with the German 10-year bund yield at 0.8%. The European Central Bank is likely to keep rates low to support economic recovery.
Commodities: Oil prices rose slightly, with Brent crude trading at $85.50 per barrel, up 0.5%. Gold prices remained stable at $1,950 per ounce, reflecting steady demand. Copper prices increased by 1.2% to $9,500 per metric ton, driven by strong industrial demand.
Energy: The energy sector saw mixed results, with Chevron reporting lower-than-expected earnings due to legal reserves and tax charges [3]. However, ExxonMobil exceeded expectations with strong quarterly results. Oil prices rose slightly, reflecting steady demand.
Metals: Gold prices remained stable at $1,950 per ounce, reflecting steady demand. Copper prices increased by 1.2% to $9,500 per metric ton, driven by strong industrial demand. Silver prices also saw a slight increase, trading at $24.50 per ounce.
Currencies: The U.S. dollar strengthened slightly against major currencies, with the EUR/USD pair trading at 1.08 and the USD/JPY at 135.50. The British pound remained stable against the dollar, trading at 1.25.
Economic Indicators: The Institute of Supply Management (ISM) reported that the U.S. manufacturing PMI for April contracted to 48.7% from 49% in March [2]. The new orders index rose to 47.2%, while the employment index increased to 46.5% [2]. Construction spending decreased by 0.5% in March, contrary to expectations of a 0.2% increase [2].
Geopolitical Developments: China has expressed willingness to engage in trade talks with the U.S., potentially easing tensions between the two largest economies. This development is seen as a positive sign for global trade and economic stability.
New Technology News: The technology sector continues to lead market gains, driven by strong earnings from major companies like Meta and Microsoft [2]. Both companies reported significant growth in their cloud and AI offerings, highlighting the increasing demand for advanced technologies [2].
This comprehensive summary provides an overview of the latest macroeconomic news and market developments for May 2, 2025. Stay informed and make well-informed investment decisions with BoykoWealth.com.
References
[1] How major US stock indexes fared Friday, 5/2/2025 – MarketBeat