Fresh data showed that US consumer spending slowed in the first quarter, though a surge in AI-related investment helped keep GDP growth at a 2% annualized pace. Despite the latest pullback, the 10-year yield remains significantly higher on the year, as persistent inflation pressures in a resilient economy have largely extinguished expectations of a Fed rate cut in 2024. Core PCE inflation accelerated in March, and initial jobless claims fell to their lowest level in nearly 50 years. This followed a split tone from Fed officials, with several regional Federal Reserve presidents pushing back against adopting an easing bias at yesterday’s FOMC meeting, where rates were left on hold.

Alphabet jumped more than 7% in pre-market trading after its cloud-computing revenue beat expectations and it reported strong growth in enterprise demand for its AI technologies. Amazon climbed more than 3% pre-market after substantially exceeding earnings forecasts.

In contrast, Meta fell nearly 10% after projecting a sharp increase in AI-related capital expenditures, stoking concerns that its infrastructure build-out may fail to keep pace with anticipated demand. Microsoft also traded lower even though its AI and cloud services results were broadly in line with consensus estimates.

On the macro side, new data showed that AI-related investment helped support US GDP, which grew at a 2% annualized pace in the first quarter. That strength helped offset weaker consumer spending, as elevated gasoline prices weighed on household outlays.

Elsewhere in single-name moves, Eli Lilly gained about 5% following its earnings release, while Mastercard declined after reporting its results.

Both the current and previous readings are based on year-over-year comparisons, measuring March 2026 retail sales against March 2025, and February 2026 against February 2025. The deceleration suggests demand is still growing but at a reduced rate, signaling a potential cooling in consumer spending after a stronger performance in February. Investors and policymakers will be watching upcoming releases to determine whether March marks the beginning of a broader slowdown in Chile’s retail recovery or a brief pause in an otherwise solid upward trend.

The figures, measured on a year-over-year basis, show that the pace of contraction in Chilean copper production nearly doubled in just one month. February 2026 had already marked a negative comparison against February 2025, and March extended that trend, with production levels falling more steeply compared with March 2025.

The deepening downturn in March raises concerns for global copper markets, where Chile plays a pivotal supply role. While the data do not specify underlying causes, the worsening year-on-year performance could amplify market focus on Chilean output trends in the coming months.

The year-over-year figures indicate that Chile’s industrial base is facing mounting pressure, as each of the past two months has posted a deeper contraction than the last. The “actual” reading for March reflects the change versus March 2025, while the “previous” February indicator captures the change versus February 2025, underscoring a worsening trend rather than a one-off setback.

The latest numbers are likely to sharpen the focus of investors, businesses and policymakers on the health of Chile’s real economy, as persistent weakness in manufacturing can weigh on employment, export performance and broader growth prospects in the months ahead.

The roughly $1.07 billion month-on-month decrease may reflect a combination of factors, including interventions by monetary authorities to stabilise the naira and meet import and debt-service obligations. While the reserves level remains sizable, the April movement will be closely watched by investors assessing Nigeria’s external resilience and its capacity to manage capital flows and exchange-rate volatility.

Market participants are likely to monitor subsequent monthly readings to determine whether this April decline marks the start of a trend or a temporary adjustment in Nigeria’s reserve management strategy. For now, the latest data signal a modest softening in the country’s foreign-currency cushion heading into the middle of 2026.

On the data front, Eurozone inflation rose to 3% in April, its highest reading since September 2023 and well above the ECB’s 2% target. At the same time, the bloc’s economy unexpectedly lost momentum in the first quarter, expanding by just 0.1%, as the conflict in the Middle East disrupted energy supplies. By contrast, Germany’s economy grew by a stronger-than-expected 0.3%, supported by firmer private and government consumption and a rebound in exports.

Services spending remained subdued, inching up just 0.1%. The category was weighed down by declines in housing and utilities (-0.3% vs 0%), softer growth in healthcare (0.2% vs 0.3%), and a notable pullback in transportation services (-0.5% vs 1.6%). In contrast, spending on recreation services rebounded to 0.4% from -0.5%, and expenditures on financial services and insurance edged up to 0.4% from 0.2%.

In February 2026, Canadian GDP grew 0.2% month over month, in line with market expectations. Manufacturing was the main driver, expanding 1.8%, supported by a 3.6% increase in durable-goods industries—their strongest monthly advance since January 2023. The mining, quarrying, and oil and gas extraction sector rose 0.4%, as oil and gas extraction posted a second consecutive monthly increase and mining and quarrying (excluding oil and gas) grew 1.2%.

Wholesale trade climbed 0.9%, while transportation and warehousing advanced 1.2%. Advance estimates indicate the economy is on track to grow 0.4% in the first quarter of 2026.

By sector, compensation costs for private industry workers rose 0.9%, accelerating from 0.7% in Q4 2025, and those for state and local government employees increased 1.0%, up from 0.8% in the prior quarter. On a year-over-year basis, overall employment cost growth held steady at 3.4%, unchanged from the previous period.

The technology sector is also poised for gains after several mega-cap US tech firms delivered largely upbeat results. Meanwhile, gold prices climbed on the back of a weaker US dollar, providing a tailwind for mining shares.

In monetary policy developments, both the Bank of Canada and the US Federal Reserve left interest rates unchanged on Wednesday, in line with expectations. On the data front, preliminary estimates of real GDP by industry indicate that the Canadian economy grew by 0.4% in the first quarter of 2026.

Expenditures on services also rose, reaching $62.9 billion. The main contributors were health care (+$21.3 billion), financial services and insurance (+$14.6 billion), transportation services (+$6.7 billion), and other services (+$6.6 billion). Adjusted for inflation, however, consumer spending growth eased slightly, with real personal consumption expenditures slowing to 0.2% from a revised 0.3% in February.

On a year‑over‑year basis, the “previous” figure of 1.93% reflected how average weekly earnings in January 2026 compared with January 2025. The latest “actual” reading of 3.36% measures the change in February 2026 relative to February 2025. The pickup between January and February suggests that wage pressures in Canada have strengthened as the year progresses.

While the data do not break down sector‑specific drivers, the shift from sub‑2% to above 3% annual growth in average weekly earnings may factor into assessments of household income trends and broader economic momentum as policymakers and markets monitor the balance between wage gains and inflation.

The decline in the moving average suggests that new claims for unemployment benefits are stabilizing at relatively low levels, often interpreted as a sign of steady employment conditions. While the shift from 211.00K to 207.50K is modest, it reinforces the view that layoffs remain contained, an important factor for consumer spending and broader economic momentum in the United States.

The move from 215K to 189K indicates fewer Americans are seeking unemployment benefits, a sign that layoffs remain relatively limited. For investors and policymakers, the lower claims figure may reinforce expectations of a still-tight labor market, which can influence views on wage pressures, consumer spending resilience, and the future path of monetary policy.

Market participants will be watching subsequent labor data releases to assess whether this decline marks the start of a sustained trend or a short-term fluctuation within an otherwise stable job market backdrop.

While the change is not dramatic, the move lower in continuing claims will likely be interpreted as another indication of underlying resilience in the U.S. labor market. Investors and policymakers closely watch this measure as it reflects the duration and persistence of unemployment, offering a complementary view to initial jobless claims and monthly payroll reports.

The latest figures may help temper concerns about a sharp cooling in employment conditions, even as broader economic indicators continue to be scrutinized for signs of slowing growth or a potential shift in Federal Reserve policy. For now, the continued dip in ongoing claims underscores a labor market that, at least by this gauge, remains comparatively tight.