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Morgan Stanley (MS) reported Q1 2025 earnings of $2.60 per share, beating the consensus estimate of $2.26. The bank posted a revenue of $17.7 billion, exceeding the anticipated $16.76 billion. Total assets amounted to $171.43 billion, highlighting its continued strength in the financial services sector.

Wells Fargo & Co (WFC) exceeded Q1 2025 earnings estimates, posting an EPS of $1.39, well above the forecasted $1.23. The bank’s revenue for the quarter was $20.15 billion, slightly under the expected $20.75 billion. Total assets stood at $206.06 billion, reflecting its solid position in the financial industry.

JPMorgan (JPM) reported Q1 2025 earnings of $5.07 per share, surpassing analysts’ expectations of $4.62. The bank generated revenue of $45.31 billion, ahead of the anticipated $43.9 billion. Its total assets reached $632.05 billion, underscoring its continued strength in the financial sector.

The University of Michigan's preliminary survey for April revealed a notable drop in consumer confidence, with the Consumer Sentiment Index plunging to 50.8 from 57.0, well below expectations of 54.0. The Current Conditions Index fell to 56.5 from 63.8, while Consumer Expectations declined to 47.2 from 52.6. Most notably, 1-year inflation expectations surged to 6.7%—the highest since December 2023—up sharply from 5.0% last month. The 5-year inflation outlook also edged up to 4.4% from 4.1%. The data points to growing consumer concerns over inflation and economic conditions, potentially complicating the Federal Reserve's policy path.

U.S. producer prices posted a surprise drop in March, with the headline PPI falling 0.4% month-on-month, far below expectations of a 0.2% increase, and marking a sharp turnaround from February’s 0.1% rise. Core PPI, which excludes food and energy, also declined 0.1% on the month, missing forecasts of a 0.3% gain. On an annual basis, the PPI rose 2.7%, while the core PPI increased 3.3%—both easing from the previous month. The broader PPI measure excluding food, energy, and transport rose just 0.1% on the month, holding at 3.4% year-over-year. These softer readings may support expectations for a more dovish Federal Reserve stance if disinflation persists.

The U.S. Federal Budget Balance posted a $161.0 billion deficit in March, significantly wider than the $115.9 billion expected, but much improved from February’s $307.0 billion shortfall. The gap reflects seasonal spending patterns and ongoing fiscal pressures as the government navigates slower revenue growth and elevated outlays.

Meanwhile, the Federal Reserve’s balance sheet inched up to $6.727 trillion from $6.723 trillion, signaling continued efforts to maintain liquidity despite tightening financial conditions.

U.S. inflation eased in March, providing fresh signs of disinflationary progress. The Core CPI, which excludes food and energy, rose by just 0.1% month-over-month, below the 0.3% forecast, while the annual rate slowed to 2.8%, the lowest since early 2021. The broader Consumer Price Index (CPI) fell 0.1% MoM, defying expectations for a slight increase, with YoY inflation cooling to 2.4%, down from 2.8% in February. The softer inflation readings may strengthen the case for the Federal Reserve to maintain a cautious stance on interest rates in the coming months.

The U.S. labor market showed continued resilience as initial jobless claims held steady at 223,000 in the latest week, matching expectations and slightly above the previous reading of 219,000. Continuing jobless claims declined to 1.85 million, down from 1.893 million, suggesting that unemployed individuals are finding jobs at a steady pace. The 4-week average also remained unchanged at 223,000, reflecting overall labor market stability despite economic headwinds.

Delta Air Lines (DAL) reported better-than-expected earnings for Q1 2025, posting an EPS of $0.46, slightly above the anticipated $0.44. Revenue came in at $14 billion, surpassing the forecasted $13.11 billion. The airline’s total assets stood at $25.53 billion, reflecting its robust financial position amid sustained travel demand.

U.S. wholesale trade sales jumped by 2.4% month-over-month in February, marking a strong recovery from the previous 0.9% decline and signaling improving demand in the wholesale sector. Meanwhile, wholesale inventories rose by 0.3%, in line with expectations but easing from January’s 0.8% increase, suggesting a more balanced inventory management amid rising sales.

Mortgage demand in the U.S. surged last week as the average 30-year mortgage rate fell to 6.61% from 6.70%. The MBA Mortgage Applications Index jumped 20.0%, rebounding from a 1.6% decline. Home purchase activity rose sharply, with the Purchase Index climbing to 172.7 from 158.2, while refinancing activity also surged—the Refinance Index hit 961.4, up from 710.4. The Mortgage Market Index increased notably to 292.3 from 243.6, reflecting renewed interest across the housing market.

President Donald Trump signed an order Tuesday imposing an additional 50% tariff on Chinese goods, raising the total U.S. tariffs on China to a staggering 104%. The move surpasses the 60% tariff threat he made during his 2024 campaign and marks a significant escalation in U.S.–China trade tensions.