The S&P 500 traded lower on the week as the latest round of earnings reports suggest a recession could be on the horizon.
On Monday, China reported its economy grew 4.5% in the first quarter, exceeding economist estimates of 4% GDP growth. China finally lifted most of its COVID-19 economic and travel restrictions in the first quarter, opening the door for the nation’s highest economic growth since the first quarter of 2022.
On Tuesday, House Republicans grilled U.S. Securities and Exchange Commission Chairman Gary Gensler over the SEC’s recent regulatory crackdown on cryptocurrency exchanges. In his testimony, Gensler said cryptocurrency trading platforms and exchanges are “noncompliant generally, and they need to come into compliance.”
On Monday, Apple Inc APPL launched a new Apple Card savings account that pays a 4.15% annual percentage yield. Apple is offering the accounts through partner Goldman Sachs and iPhone users can set up an account from the Wallet app on their devices.
On Tuesday, Fox Corp FOX and its cable networks agreed to pay $787.5 million to Dominion Voting Systems to settle a defamation lawsuit tied to false claims Dominion’s voting machines helped Joe Biden defeat Donald Trump in the 2020 presidential election. Fox’s on-air talent will reportedly not be required to acknowledge or address the settlement on air, and Fox’s stock finished the week little changed.
Making A U-Turn: Shares of electric vehicle maker Tesla Inc TSLA dropped nearly 10% on Thursday after the company reported a 24% drop in net income in the first quarter following several rounds of price cuts on its vehicles.
For the first quarter of 2023, analysts are anticipating the largest drop in S&P 500 earnings since the second quarter of 2020, according to FactSet.
Economic Numbers: Investors will get key economic updates on Thursday when the Bureau of Economic Analysis releases its preliminary first-quarter U.S. GDP growth estimate and on Friday when it releases its March Personal Consumption Expenditures Price Index reading.