Good Morning! The U.S. economy contracted by 0.3% last quarter, but markets somehow finished in the green, clawing back from a 2% intraday drop after Trump called it “Biden’s stock market.”

Goldman Sachs CEO David Solomon is feeling optimistic and says markets will “settle down” following a “reset of expectations.” Meta and Microsoft crushed earnings, with their stocks jumping 5% and 7% in after-hours trading. And Musk is stepping away Washington after claiming to have saved the government $160 billion.

Plus: Starter homes now cost over $1 million in more than 200 U.S. cities, BNY Mellon is requiring four days a week in-office, and Morgan Stanley is opening private equity access to millionaire investors.

Specialized AI tools are emerging as the leaders for alternative investments workflows which is why BlueFlame AI is ahead of the curve. Check out their platform and how BlueFlame AI can serve your firm's specific needs.

SQUEEZ OF THE DAY

Baird’s Brutal Banking Conditions

Baird is the Midwest investment bank known for its “No A**hole Rule.” But behind the Midwest niceties, a new WSJ report found the firm may have some of the worst working conditions for junior bankers in the industry.

On Baird’s industrials team, a major revenue driver for the firm, analysts and associates routinely got pushed to 110-hour weeks, all while the firm continued to promote a culture of kindness. Baird technically enforces an 80-hour cap for junior staff, but insiders say it's rarely honored.

Analysts regularly worked until 4 a.m., and one was reprimanded after stepping away for 25 minutes to eat dinner. Managers reportedly demanded that no absence exceed five minutes without prior notice.

That culture has taken a physical toll, too. At least two bankers were hospitalized: one suffered pancreas failure after weeks of 20-hour days; another collapsed at home, filed a complaint with HR, and was later fired. Since then, over a dozen junior bankers have left the team.

The breaking point came when a viral Wall Street Oasis post described the environment as “inhumane” and named a mid-level banker Aaron Haney as a key offender.

Haney was a VP on the industrials team, was accused of assigning 20-hour workdays and later got fired. Juniors say complaints were discouraged, with senior bankers flexing their own “back in my day” suffering as a badge of toughness.

One of the most tone-deaf moments was during a Chicago “pizza party,” where exhausted analysts expected appreciation for their efforts. Instead, they were told to “step up” and work more efficiently. 

Takeaway: Baird held a town hall after the backlash and while some say it showed progress, others saw it as pure damage control and the same pleasantries that we’ve seen at other banks. Last year, the death of two Bank of America associates shed light on the industry’s notoriously brutal working conditions, but when junior bankers are hospitalized (and then fired for a ‘lack of productivity!), it goes to show the industry still has a long way to go.

HEADLINES

Top Reads

• The U.S. economy shrank in Q1 2025 (CNBC)

• S&P wipes out 2% drop for first time since 2022 (YF)

• Goldman Sachs CEO says markets will 'settle down' (Fox)

• Meta beat Q1 estimates, offers strong Q2 outlook despite tariffs (YF)

• Microsoft shares jump 7% on earnings and revenue beat, uplifting forecast (Axios)

• Trump tariffs spooked IPO markets but SPACs still thriving (Axios)

• BNY said to ask staff to return 4x/week, up from 3 (SA)

• ‘Starter homes’ cost at least $1 million in over 200 U.S. cities (CNBC)

• Blackstone explores $3B sale of sustainability software firm Sphera (YF)

• Elon Musk bids farewell to Trump Cabinet, claims DOGE saved $160 billion (CNBC)

• Trump says he’ll blame Biden again for Q2 GDP drop (CNBC)

• Nvidia CEO says China not behind in AI (CNBC)

• GLP-1s can help employers lower medical costs in 2 years (CNBC)

• Shein IPO on the line, company ponders restructuring (Axios)

• Morgan Stanley offers private equity fund for millionaire masses (BB)

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CAPITAL PULSE

Markets Rundown

Market Update

• With the market moving out of correction territory and away from extreme pessimism, further upside likely depends on concrete trade deals, not just improved rhetoric.

• Treasury yields declined, helped by cooler-than-expected inflation data, while oil prices fell below $60, as Saudi Arabia signaled plans to ramp up production amid rising inventories.

• The U.S. economy contracted by 0.3% in Q1, the first decline since 2022, driven by a record surge in imports that subtracted 4.8% from GDP. 

• Consumer spending slowed to 1.8%, and government spending declined for the first time in nearly three years. Still, business investment accelerated at its fastest pace since 2020, suggesting pockets of resilience.

• Looking ahead, the Fed is widely expected to hold rates steady next week, but two to three cuts remain possible by July if labor market and growth data continue to weaken.

Economic Data Highlights

• Q1 GDP: -0.3% annualized (first decline since 2022)

• Net exports: -4.8% drag on GDP (record contribution drop)

• Consumer spending: +1.8% (slowest pace since Q2 2023)

• Business investment: Fastest growth since 2020

• Oil: Fell below $60 on Saudi production signals

• Fed outlook: Cuts possible by June or July

Reported Earnings

• Meta Platforms (META) – Reported April 30: Beat EPS and revenue estimates; ad strength and AI leadership highlighted. Stock rose post-market.

• Microsoft (MSFT) – Reported April 30: Azure revenue grew faster than expected; strong cloud performance offset higher capex. Guidance held steady.

• Qualcomm (QCOM) – Reported April 30: Solid earnings beat; mobile chip sales stabilized and automotive business expanded.

• Robinhood (HOOD) – Reported April 30: Revenue beat estimates; user growth resumed, with highlights on retirement accounts and new product rollouts

Earnings Today

• Apple (AAPL) – Reporting May 1 (After Market Close): Focus on iPhone demand, services growth, and any commentary on China sales softness.

• Amazon (AMZN) – Reporting May 1 (After Market Close): Investors watching AWS growth, margin expansion in retail, and consumer spending trends.

• Airbnb (ABNB) – Reporting May 1 (After Market Close): Key metrics include bookings, average daily rates, and summer travel guidance.

Movers & Shakers

• (+) Oddity Tech ($ODD) +30% after the beauty retailer raised its outlook.

• (–) Super Micro Computer ($SMCI) -12% because of weak guidance; earnings miss.

• (–) Snap ($SNAP) -12% after the social media company announced an inability to offer guidance.

Private Dealmaking

• Persona, a verified identity startup, raised $200 million

• Cast AI, an automation platform, raised $108 million

• Canopy, an accounting software provider, raised $70 million

• Supio, a personal injury AI platform, raised $60 million

• Pliant, a BB payments platform, raised $40 million

• Superpower, a health early detection app, raised $30 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

The Art of Winning

No one embodies winning more than Bill Belichick, the greatest football coach of all time. Over the past fifty years, Belichick has been a man of notoriously few words, believing that a coach should keep a low profile.

After he left the Patriots in 2024, he briefly became a coach without a team. He spent that year writing down the principles he learned from his father, Navy football, and from his forty-nine-year coaching career.

Belichick’s philosophy goes far beyond football. He presents a whole-year, whole-life, whole-mindset approach to greatness that encompasses preparation, motivation, confidence, and leadership.

The principles in this book are adaptable to wherever you work. No matter where you are on the ladder, they will help you think like a leader in anticipation of being one.

Drawing on decades of studying the greats of the game, handling colorful personalities and egos, and playing for the highest stakes in sports, Belichick shares memorable examples and practical takeaways from his lived experience.

Winning is not about being perfect—it’s about growth. And you will improve only as much as you recognize where you’re weak. Belichick owns up to mistakes like deciding to go for it on 4th and 13 in the 2008 Super Bowl.

Then he breaks down how to learn from your mistakes like a leader does—an approach that sustained him throughout his early career challenges and ultimately brought him to the top of the sport.

Belichick’s principles might surprise you at times. At other times, they might seem strangely obvious. (His rule for how to win football games? Score the most points.) Football is about strategy, human nature, and business.

Your vision of success might involve breaking into a new, competitive market in your industry; seeing solid returns on a portfolio that you’ve carefully prepared; inspiring your students to earn the highest scores in the district; or raising up trainees to take over your job someday.

Whatever the situation, your performance is up to you.

Practical, authoritative, and bursting with unforgettable inside stories, The Art of Winning is an indispensable guide to success from the greatest coach in NFL history.

“Winning isn’t a science. It’s an art. And it can be learned.”

DAILY VISUAL

Starbucks Still Struggling

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Since securing their initial prototype order from SpaceX and a subsequent project order of 156 homes from the Department of Defense, BOXABL has made substantial strides in streamlining their manufacturing and order process. BOXABL is now delivering to developers and consumers. And they just reserved the ticker symbol BXBL on Nasdaq.*

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DAILY ACUMEN

Legends Series: Stanley Druckenmiller

Stanley Druckenmiller never had a down year in three decades, a feat that stuns even the best.

Managing George Soros’ Quantum Fund and later his own Duquesne Capital from 1981 to 2010, he averaged 30% annual returns, peaking with a $1 billion win alongside Soros in 1992 by shorting the dollar.

Druckenmiller’s genius was adaptability—he shifted strategies as markets evolved, from currencies to equities to bonds, always staying ahead of the curve.

He famously sold tech stocks before the 2000 dot-com crash, then pivoted to energy bets.

Druckenmiller’s lesson is critical: stay flexible.

As trade tensions ease, his adaptability can inspire investors to pivot strategies, ensuring they’re ready for whatever economic shifts 2025 brings.

ENLIGHTENMENT

Short Squeez Picks

• The conversations you should be having with your manager

• 7 proven strategies for mastering negotiation

• 12 tried-and-trued time management principles 

• Green flags to include on your resume

• The types of first dates most likely to lead to a second

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