Global Markets Rally as Trump Backs Down on Fed Chair Threats

Market Reaction to Trump's Fed Stance

• 📈 Global shares surged as President Trump retreated from his threat to dismiss Federal Reserve Chair Jerome Powell.
• 🇰🇷 South Korean stocks closed at a one-month high following the news.
• 🇪🇺 European shares experienced a strong start to early trade.
• 🇺🇸 US stock futures indicated a continuation of yesterday's positive performance.

Economic Outlook and Tariffs

• 📊 The IMF projects global economic growth of 2.8% in 2025, noting this is the worst performance since the pandemic.
• ⚠️ The IMF attributes this slowdown primarily to tariffs.
• 🇺🇸 The US, the world's largest economy, saw its growth forecast downgraded to just 1.8%.

Company-Specific News

• 🚗 Tesla's share price, despite a 70% drop in first-quarter profits, saw a significant rise in after-hours trading.
• 💡 This surge followed CEO Elon Musk's announcement that he would reduce his role in the US government to focus more on Tesla.
• 📉 Musk's political involvement has coincided with a sharp decline in Tesla's sales.
• 💾 Intel is reportedly planning to slash its workforce by 20%, ahead of its first-quarter earnings report.
• ✈️ Boeing is set to release its first-quarter results, with investors focused on the production plans for its flagship 737 model.
• 💰 Boeing executives anticipate burning through cash in 2025.