May 1, 2026

U.S. GDP grew by 2% in the first quarter of 2026

International

Yesterday morning, the first estimate of U.S. GDP (Gross Domestic Product) for the first quarter of 2026 was released. The figure showed annualized growth of +2.0%, which is below the +2.2% expected by the consensus of analysts. In addition, March Personal Consumption Expenditures (PCE) inflation was released, coming in at +0.7% month-over-month and +3.5% year-over-year, while the core figure, which excludes food and energy, came in at +0.3% month-over-month and +3.2% year-over-year. In all cases, the figures were in line with analysts’ expectations.

In addition, the Eurozone’s interest rate decision was announced yesterday. The European Central Bank kept its benchmark interest rate unchanged at 2.15%. The bank noted that rising energy prices, due to the conflict in the Middle East, have heightened the risk of inflation, while the risks to economic growth have shifted downward.

Yields on U.S. Treasury bonds narrowed yesterday. The yield on the 1-year bond fell from 3.74% to 3.71%, while the yield on the 3-year bond fell from 3.97% to 3.90%. At the long end of the curve, the yield on the 10-year bond fell to 4.38% from 4.43% previously.

Meanwhile, the major U.S. stock indices closed higher on Thursday. The S&P 500 gained +1.0% during the session, while the Nasdaq advanced +0.9%. Meanwhile, the Dow Jones jumped +1.6% during the day. As a result, the indices have accumulated gains of +5.3%, +7.1%, and +3.3% so far this year, respectively.

Finally, after the market closed yesterday, Apple reported revenue of $111.2 billion and earnings per share (EPS) of $2.01, exceeding the expected $1.93, while Eli Lilly posted EPS of $8.55 compared to the $6.97 projected by the analyst consensus. Meanwhile, Mastercard and Caterpillar reported earnings of $4.60 and $5.54 per share, respectively, figures that came in above expectations. Today, reports are expected from Exxon Mobil and Chevron, with EPS estimates of $1.03 and $1.24, as well as the release of results from Linde, whose projected EPS is $4.27.