Tame CPI in April throws out the threat of staglation


People shop in a grocery store in Brooklyn on May 13, 2025 in New York.

Spencer Platt Getty images

US Federal Reserve at a meeting on May 7 warned that America is facing an increased risk of staglation – a scenario in which the economy slows down or contract, while inflation rises – due to large tariffs imposed by President Donald Trump from April 2.

Inflation data published on Tuesday, however, showed that prices have not yet increased. In fact, the annual reading was lower than expected, and the basic number, which excludes unstable prices of food and energy, was also smaller than the forecast for a month.

I must admit that the data only intercepts a month after the introduction of Trump tariffs. Import rush at the beginning of the year – which was a large part of why the American gross domestic product He fell in the first quarter – Could suppress a price increase. Companies could also swallow taxes.

But with Pause of “mutual” tariffsAND Trade agreement with Great Britain and Agreement with China They temporarily reduce the three-digit duties-all of them suppress price increases and maintain the American consumer, the ground of the American economy, happy-for now a threat to stagflation.

What you need to know today

The lowest annual inflation from 2021.
Index of consumer prices in the USA
It increased seasonally corrected by 0.2% The work statistics office was found that in April, which is a 12-month inflation rate of 2.3%, the lowest than February 2021. Annual inflation was lower than the expected 2.4%. Core CPI also increased by 0.2% a month, while year -on -year level was 2.8%. The forecast was for 0.3% and 2.8%, respectively.

S&P 500 is positive during the year
On Tuesday, . S&P 500 It increased by 0.72%, which putting around 0.1% in green for 2025. NASDAQ composite added 1.61%, raised Nvidia 5.6% jumps in the news that the company sends 18,000 advanced systems to Saudi Arabia. But Industrial average Dow Jones lose 0.64% after almost 18% of the decrease in shares Unitedhealth He pressed the reference point. Pan-European Stoxx 600 marked by 0.12%.

Trump raises sanctions against Syria
US President Donald Trump is in Saudi Arabia First diplomatic journey his second date. On Tuesday at the US-Saudi investment forum in Riyadh, Trump announced that it would be Remove all sanctions for Syria. The country was Designated by the USA As a sponsor of the state of terrorism since 1979. Trump also announced at the same event as Saudi Arabia will be investing in the USA $ 600 billion In a series of offers.

Microsoft limits 3% of its employees
Microsoft On Tuesday he said it was fighting 3% of employees At all levels, teams and geographical, affecting about 6,000 people. One of the goals is to reduce the management layers, said Microsoft spokesman in a statement to CNBC. The company reported better than the expected results at the end of April, from $ 25.8 billion in quarterly income net and Optimistic forecast.

Coinbase Jump shares
Coins Actions increased by 24%, their Rally From November 6, the day after the victory of Trump's election. On Monday, S&P Global said in the version at the end of Monday Coinbase will replace the discover finanical service In S&P 500 before trading May 19. Actions added to the S&P 500 often grow values, because the tracking means of the comparison will add it to their wallets.

(Pro) UBS wealth reduces US resources
Despite the last rally in S&P due to promising signs that trade agreements are concluded between the USA and its trade partners, UBS Weal I lowered the USA sharesEven like others on Wall Street lifting their Forecast 2025 for S&P.

And finally …

Trucks with GMC pickup are displayed for sale in the General Motors dealer on January 5, 2023 at Austin, Texas.

Brandon Bell Getty images

GM will present a new “breakthrough” EV battery technology, it is to be the first on the market

General Motors A new “groundbreaking” EV battery technology is expected, which according to the manufacturer's manufacturer will reduce the costs and increase the profitability of the largest electric SUVs and trucks.

GM is managed in them with new batteries and chemistry-a single lithium-manganese links of prismatic batteries-full-size electric vehicles, such as Chevrolet Silverado and Escalade IQ, starting from 2028.

New batteries use more precise, cheaper minerals, such as manganese, instead of larger amounts of cobalt and nickel, which are currently used in EV batteries from GM and other car manufacturers.

The first GM expectations on the market appeared after the rival of Crosstown Ford engine At the beginning of this month, he announced the intention to introduce what he similarly called LMR batteries “changing the game” before 2030.



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