US stocks tumble after economy shrank in Q1

Score one for “the stock market is the economy.”

US stocks are sliding in premarket trading after the Bureau of Economic Analysis reported that the advance estimate of first-quarter GDP showed a 0.3% contraction in the economy compared to Q4, at a seasonally adjusted and annualized rate. The average economist expected a slightly more modest contraction.

The SPDR S&P 500 ETF was off about 0.6% prior to the data, but has more than doubled those losses to as much as -1.4%. Downside in the Invesco QQQ Trust ETF neared 2%.

Imports were a massive drag on growth, some of which can be explained by front-running to beat tariffs, which is reflected in (and offset by) a massive inventory build that added to growth.

If we’re looking for silver linings, consumption — the engine of US economic activity — surprised to the upside, up 1.8% quarter on quarter.

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General Fusion CEO Greg Twinney spoke with Sherwood News from the Nasdaq during the stock’s first day of trading.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

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Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

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