Weekly Market Recap – May 5, 2025

Last week’s busy slate of data helped give investors a better idea of how the economy is faring amid policy uncertainty. The 1Q25 GDP report revealed the U.S. may be closer to recession than expected, with a tariff-driven spike in imports dragging real growth down 0.3% annualized. The labor market, however, continued to look solid. The April Jobs report showed that businesses added 177k jobs during the month and 398k during the first quarter. Taken together, this data suggests that we may be in the early innings of a policy-induced productivity slowdown.