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Matt Davis — Need2Know Chedditor

News You Need2Know

What’s the stock market up to, eh?*

$SPX ( ▲ 1.02% )   $DJI ( ▲ 1.62% )   $NDX ( ▲ 1.59% )  

Companies mentioned in today’s newsletter

$C ( ▲ 0.29% )   $JPM ( ▲ 1.29% )   $PLTR ( ▲ 0.83% )  

Consumers feel pinch, AI props up the economy

The U.S. economy just delivered its first major scorecard for 2026, and the results highlight a massive shift in what’s driving growth. In the first quarter, the U.S. gross domestic product (GDP) grew at a 2% annual rate, rebounding from a late-2025 government shutdown. However, this still fell short of Wall Street’s 2.2% expectations.

So, what's fueling the growth? AI. Businesses are spending heavily on AI intellectual property and equipment, driving a 10.4% surge in nonresidential fixed investment. But experts warn this tech-driven momentum faces headwinds. As Joseph Brusuelas, chief economist at RSM, told the Wall Street Journal, “What you have here is an AI-inspired GDP increase, that in coming quarters will see a drag.”

That drag is already appearing as the economy's main engine—the American consumer—taps the brakes. Consumer spending growth slowed to a 1.6% pace as the ongoing Iran conflict sent gas prices soaring by 44%, severely damping consumer sentiment. Andre Schulten, P&G’s chief financial officer, accurately summed up the mood on Main Street, telling the Journal, “The consumer is still a little bit muted.”

With inflation complicating the Federal Reserve's pathway to interest rate cuts, the AI boom might have to continue carrying the heavy economic lifting. Or, you know…the whole house of cards could come crashing down. Depends on your glass-half-full-empty perspective, I guess?

Quote of the Day

This guy wants to build a private space station

The commercial space economy is rapidly taking off, and Dr. Jonathan Cirtain, CEO and president of Axiom Space (above) is at the forefront of the new frontier. While government agencies like NASA are increasingly setting their sights on deep-space exploration to the Moon and Mars, companies like Axiom are stepping in to build the necessary infrastructure for a permanent human presence in “low-Earth orbit.”

Axiom Space's most ambitious project is a private commercial space station. The company is currently producing modules that will initially attach to the International Space Station (ISS) in 2028 to demonstrate safety. By 2029, Cirtain expects to have these modules fully operational and independent, ready to "start hosting humans in a permanent way."

Why build a commercial space station? For Cirtain, it is all about leveraging microgravity for scientific and commercial advancements. He envisions a near future where the station is utilized to manufacture pharmaceuticals and life science devices. As Cirtain explains, the ultimate goal is “taking space as a resource and using it to make things to our benefit here on Earth." Backed by a recent $350 million capital raise, Axiom's cutting-edge outpost is closer to reality than ever.

JPMorgan forced out Citi’s new head of banking, says report

Citigroup $C ( ▲ 0.29% ) recently touted the hiring of Vis Raghavan, offering him a massive $52 million pay package to become their new head of banking. What they didn't mention to investors? Raghavan was actually on his way out at JPMorgan $JPM ( ▲ 1.29% ) just days prior, ousted after years of complaints regarding his volatile behavior, according to a new report in the Financial Times.

While some saw him as a tough taskmaster who got results, others described Raghavan as an intimidating bully who would "explode" in his glass-walled office. According to insiders, he openly berated employees, calling them "ignorant," "inadequate," and even a "waste of calories." Two people alleged he described his leadership style as “grab them by the balls,” although he denied using such language through a spokesperson. In another incident, he reportedly told junior bankers an inappropriate story about a former college crush, crassly adding that now "she was fat."

Despite this track record, which also included bending company policy at JPM to hire a close family member, Citi swiftly nabbed the executive. In response to the allegations, Citi fiercely defended their new star: “It’s disappointing the FT is publishing such frivolous, tabloid coverage . . . built on anonymous smears,” they wrote. “Vis is a proven leader with a well-earned track record for driving results.”

Perhaps the proof is in the pudding. Citigroup’s stock is up more than JPMorgan’s since it made the controversial hire:

Song of the Day: Foo Fighters, ‘Window’

Kicking off their first stadium rock tour just two years after Dave Grohl admitted he had a secret child, this song from the band’s new album shows that no-frills punk, played fast and loud, suits them much better than middle-of-the-road dad rock (however many kids, secret or otherwise, that dad-rock rocks to). Can’t get a refund on Grohl’s autobiography, “The Storyteller,” though, can I? The one in which he extolled his virtues as a perfect father to his three legitimate daughters, and in which he sorta glossed over any others…