Soft landing? The U.S. economy expanded at an annualized rate of 2.0% in the first quarter of 2026, according to the advance estimate released Thursday by the Bureau of Economic Analysis—rebounding sharply from 0.5% growth in Q4 2025. Growth was driven by increases in investment, exports, consumer spending and government spending. The result missed market forecasts of 2.3%, with analysts noting consumer demand softened and business investment remained narrow, concentrated largely in data center spending. View the report.
Blockade bites back: Oil briefly surpassed $126 a barrel Thursday, its highest price in four years, as traders worried about a prolonged closure of the Strait of Hormuz. U.S. average gasoline prices hit a four-year high of $4.30 a gallon. As CNN reports, economists warn that if the supply disruption extends into the second half of the year, it could trigger a global recession. Goldman Sachs estimates Hormuz exports have fallen to just 4% of normal levels, with oil potentially spiking to $140–$150 if the blockade persists. CNN has the full story.
Capex surges: Amazon reported a blockbuster first quarter, with net sales rising 17% to $181.5 billion and net income reaching $30.3 billion—nearly double the $17.1 billion posted in Q1 2025. The quarter’s net income includes pre-tax gains of $16.8 billion from Amazon’s investments in Anthropic. AWS grew 28% to $37.6 billion in sales, its fastest growth in 15 quarters. Free cash flow, however, dropped sharply to $1.2 billion from $25.9 billion a year ago, driven by a $59.3 billion surge in capital expenditures, primarily tied to artificial intelligence infrastructure. Read the earnings report.
