US Economy is Re-Accelerating Again

Dear Traders,

What a day to end the week! Did you see what happened? Elon Musk denied a report that Tesla had called off plans for a less-expensive vehicle, saying on X that “Reuters is lying.” The report, which dragged Tesla shares lower by as much as 6.2%, just came before Paras was trading it LIVE in the chatroom. As soon as he decided to step out, the news broke. It was unbelievable to see such volatility!

If you want to see how Paras and I traded this morning, watch my recap here.

This week was hard for me trading wise, but I am super excited to see our Team and many of our traders. We have completely sold out Paradox Hotel in downtown Vancouver, and we are having two full days of presentations, live trading, entertainment and more. Over 250 traders will be joining us!

Saturday morning, we will start with a BBTFamily run at 8 am around the amazing Seawall in Stanley Park. We then have a reception in the Peak Capital office. Sunday morning our event starts at 11am.

Another big story of the day was US jobs roar again, unemployment drops, and markets soar! The US added 303,000 jobs last month, well beyond estimates and pushing back against any notion of the Fed cutting interest rates before summer. Unbelievable!

The unemployment rate fell to 3.8%. The gains were fueled by faster hiring in healthcare and construction, as well as leisure and hospitality, which has now bounced back above its pre-pandemic level.

Larry Summers, the former Treasury Secretary, said the jobs report should give the Fed pause about moving rates lower in June. “If anything, the economy is re-accelerating”. The Fed seems to be listening. “It’s much too soon to think about cutting interest rates,” Dallas President Lorie Logan said. Colleague Michelle Bowman agreed, saying it’s “still not yet” time to lower borrowing costs.

Attention now turns to next week’s inflation report!

To your success,
Andrew