TL;DR

US inflation drops to 2.3%; Boeing lands major orders; American Eagle guidance withdrawn, shares plunge.

Highlights

• U.S. April inflation slowed to 2.3% y/y, the lowest since 2021, surprising economists1.
• House Republicans proposed $4.9T in tax breaks, offset by cuts to Medicaid, food stamps, and green energy13.
• Tesla stock rose to $318, up 35–50% since March lows14.
• Boeing secured major orders: Saudi Arabia for 30 737 MAX jets (~$1.5B) and Qatar Airways for up to 200 wide-body planes2.
• American Eagle Outfitters Q1 revenue fell 5% to $1.1B; guidance withdrawn; shares dropped 18% after hours4.
• Chime filed for a Nasdaq IPO (CHYM), reporting $12.4M Q1 net income on $518.7M revenue6.
• Nubank Q1 net income rose 74% to $557M; shares fell 5% on higher loan loss provisions715.
• GigaCloud Q1 EPS $0.83, revenue up 8%, active buyers +81% y/y15.
• State Farm approved for 17% emergency rate hike on California homeowner policies after wildfire losses5.
• Ethereum surged nearly 70% in May, up 50% in 7 days, outperforming Bitcoin and Solana 9.
• Tether bought 4,812 BTC ($458M) ahead of launching crypto treasury venture Twenty One8.
• China criticized the new US-UK trade deal for targeting Chinese supply chains10.
• Iran and E3 to resume nuclear and sanctions talks in Istanbul on May 1611.
• EU economist flagged mounting economic pressure on Russia from sanctions and falling oil revenues12.
• 3M agreed to pay New Jersey up to $450M over 25 years to settle PFAS contamination claims3.

Commentary

A sharp drop in U.S. inflation to 2.3%—well below expectations—has shifted the macro outlook, giving equities room to rally and easing pressure on the Fed to maintain a restrictive stance1. This sets a constructive tone for risk assets, though sector performance remains uneven. Retail is under pressure: American Eagle 's revenue miss, inventory write-down, and guidance withdrawal triggered an 18% after-hours decline, with sector peers also weak4. In contrast, Tesla 's continued rebound and Boeing 's major Middle East orders highlight resilience and demand in select industrial and growth names142.

Legislative developments are in focus, as House Republicans advanced a $4.9T tax break plan funded by significant cuts to social and green programs13. If enacted, this could impact consumer spending and the renewable sector, while boosting after-tax corporate and individual incomes. State Farm's emergency rate hike in California underscores ongoing insurance sector stress from climate-related losses5.

The IPO window is reopening: Chime 's filing, backed by strong Q1 growth, signals improving sentiment in fintech and tech listings6. Nubank delivered robust customer and revenue growth, but higher provisions and credit risk led to a post-earnings selloff715. GigaCloud 's results point to continued strength in B2B e-commerce15.

Crypto markets remain volatile and active. Ethereum 's outperformance and Tether's large Bitcoin purchase ahead of a new treasury venture suggest institutional flows and speculative interest are supporting digital assets98.

On the geopolitical front, China’s criticism of the US-UK trade deal and renewed Iran nuclear talks add to headline risk1011. Meanwhile, EU warnings on Russia’s deteriorating fiscal position could affect energy markets and risk sentiment12. 3M ’s PFAS settlement has long-tail implications for industrials facing environmental liabilities3.