Good morning. US stock futures ticked higher in Friday morning trading as investors kept an eye on Washington for signs of progress on debt ceiling negotiations.

"Investors enjoy capital gains when asset prices rise, but any immediate gains are offset by lower investment returns going forward"

Edward Chancellor

Top News

US GDP tops estimates

WHAT: Attention economy enthusiasts! The US Commerce Department unveiled their latest economic data revealing that economic growth in the US was not as slow as estimated. In fact, US GDP climbed 1.3% in the first quarter, compared to a previously estimated 1.1% increase.

WHY: Despite the upward revision, GDP growth in the first quarter still reflects a slowdown from the 2.6% jump seen in the fourth quarter of 2022.

Brain implant business gets FDA approval

WHAT: Elon Musk’s brain implant company Neuralink just got some wind beneath its wings. They’ve officially secured the US Food and Drug Administration’s (FDA) seal of approval to kickstart their first-in-human clinical study.

WHY: Neuralink is developing a brain implant it hopes will help paralyzed people walk again, and cure other neurological ailments.

Mortgage giants placed on negative watch list

WHAT: Fitch Ratings is back at it again! This time, the ratings agency said they’ve put US mortgage titans Fannie Mae and Freddie Mac on watch for a possible downgrade, citing gridlocked debt ceiling negotiations taking place in Washington.

WHY: The move comes after the ratings agency warned that the US’ AAA credit rating could be downgraded if a debt ceiling deal was not reached soon.

In Other News

Ford, Tesla shake hands on electric charging stations

 WHAT: Sometimes business rivals become friends...well kinda. Ford announced that starting in 2024, customer who own Ford electric vehicles will have access to over 12,000 Tesla Superchargers across the United States.

WHY: The tie-up between the rivals makes Ford the first major automaker to embrace Tesla’s proprietary charging standard, giving the automaker access to the biggest network of high speed Superchargers in the US.

Canada to look under the hood of OpenAI

WHAT: Looks like its Canada’s time to tango with ChatGPT parent OpenAI on, you guessed it…privacy issues. Canada’s privacy regulators are launching a joint investigation into OpenAI’s data collection and usage, becoming the latest major government to take a look into artificial intelligence tools.

WHY: The launch of ChatGPT is fueling an AI race among tech giants such as Alphabet and Meta, leaving governments in a tough spot as they mull laws to govern the use of the radical new technology.

Americans love stocks!

WHAT: Hold on to your investment portfolios folks! According to the results from a recent Gallup poll, 61% of US adults own stock either individually, in a stock mutual fund, or in a self-directed 401K or IRA. This represents an increase from the 58% number recorded last year.

WHY: Despite a major stock market correction in 2022 — all three major US stock indexes recorded their worst year since 2008 — Americans did not abandon their stock holdings, a reversal from the response to the Great Financial Crisis.

Key Economic Events

• Friday - No Major Economic News

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