Finance

Economic data released today shows the U.S. GDP expanded at an annualized rate of 2% in the first quarter of 2026, marking a significant recovery from the previous quarter's stagnant growth. This rebound was driven largely by massive business investments in artificial intelligence equipment and software, despite high energy prices and the start of a conflict with Iran.

The Federal Reserve maintained interest rates in the 3.5% to 3.75% range during what is expected to be Jerome Powell's final meeting as chair. The central bank cited resilient consumer spending and high uncertainty from Middle Eastern developments as primary factors for keeping its current monetary policy stance unchanged while Kevin Warsh prepares to take over the role.

Energy markets remain under pressure with Brent crude trading near $117 per barrel as the U.S. prepares for an extended blockade of Iran. Retail gasoline and diesel prices in the U.S. have peaked at their highest levels for the year, though equity markets have shown unusual resilience to these elevated fuel costs.