The global economic stage is set for a dramatic reveal, with a decision on the next Federal Reserve chair poised to influence the $112 trillion world economy. President Trump announced he would name his nominee for the top Fed position Friday morning. Kevin Warsh, a former Fed Governor, is widely considered the frontrunner, with a prediction market placing him as the favorite and an administration source confirming his presence at the White House on Thursday.
This pivotal announcement comes amidst a flurry of geopolitical and market-moving events. At the same event where Trump teased the Fed decision, he also issued a stern warning to the United Kingdom, deeming its business dealings with China “very dangerous.” This statement contrasts with the recent trade and investment agreements reached between the UK and China during Prime Minister Keir Starmer’s visit.
In the corporate sphere, technology giants reported mixed earnings. Apple announced a robust 16% year-on-year increase in first-quarter revenue, driven by strong iPhone sales and a positive outlook for the current quarter. However, the market’s reaction was muted, with shares inching up only 0.5% in after-hours trading. This tepid response may reflect investor concerns that Apple is lagging in the artificial intelligence race.
Conversely, Meta Platforms saw its shares surge over 10%, fueled by optimism surrounding its AI initiatives. In stark contrast, Microsoft experienced a significant downturn, with its stock plummeting 10% and erasing $357 billion in market capitalization—its worst day since March 2020. This decline was attributed to concerns over its substantial spending plans and a slowdown in cloud growth.
The divergence in tech stocks cast a shadow over the broader market. The Nasdaq Composite, heavily weighted towards technology, fell 0.72%. The S&P 500 also dipped by 0.13%, while the Dow Jones Industrial Average managed a modest gain of 0.11%.
The risk-off sentiment persisted into Friday, with precious metals and cryptocurrencies joining the decline. Spot gold saw a drop of over 4%, and Bitcoin continued its downward trend, reaching a nearly two-month low.
**Key Developments to Watch:**
* **Denmark-U.S. Greenland Talks:** Denmark’s foreign minister described high-level discussions regarding Greenland’s future as “very constructive,” indicating a positive trajectory for bilateral relations concerning the Arctic territory.
* **Trump Lawsuit Against IRS and Treasury:** President Trump and his family are seeking at least $10 billion in damages, alleging breaches of confidentiality through the leak of their tax information. This lawsuit names the IRS and U.S. Treasury as defendants.
* **China’s Consumer Spending Initiative:** Beijing has unveiled a new plan aimed at stimulating service consumption, encompassing sectors like tourism and sports, as part of a broader strategy to increase the contribution of domestic consumption to its economy over the next five years.
* **Asia-Pacific Markets Decline:** Following the U.S. market’s mixed performance, markets across the Asia-Pacific region mostly fell, with Hong Kong’s Hang Seng Index leading the losses.
* **Strategic Metal Control:** Russia and China’s dominance over a critical metal essential for military hardware has prompted a U.S. company to develop alternative solutions, leading to a “buy” rating from an investment bank initiating coverage.
**Global Fund Performance:**
Norway’s sovereign wealth fund, the world’s largest, reported a remarkable profit of $246.9 billion in 2025. The fund achieved its highest annual return since its inception, driven by strong performance in technology, financial, and basic materials sectors. This surge underscores the significant impact of these industries on global investment portfolios.
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