Market Beats | US Trade Deficit Narrows by Record in April; Trump Signs Order Blocking Foreign Students from Harvard; Tesla Shares Tumble as Musk-Trump Feud Boils Over; Trump, Xi Agree to Restart High-Level US-China Trade Talks; Procter & Gamble to Cut 7,000 Jobs

—— US Trade Deficit Narrows by Record in April; Trump Signs Order Blocking Foreign Students from Harvard; Tesla Shares Tumble as Musk-Trump Feud Boils Over; Trump, Xi Agree to Restart High-Level US-China Trade Talks; Procter & Gamble to Cut 7,000 Jobs

1. US Trade Deficit Narrows by Record in April

The US trade deficit shrank in April by the most on record, driven by the steepest drop in imports ever, signaling a sudden halt to the wave of front-loading by firms anticipating higher tariffs.

According to Commerce Department data released Thursday, the trade gap in goods and services fell 55.5% from the prior month to $61.6 billion — the smallest since 2023 and fully reversing the sharp widening seen in the first quarter. Economists surveyed by Bloomberg had forecast a deficit of $66 billion.

Imports of goods and services plummeted 16.3% in April, a record monthly decline, while exports rose 3%.

The dramatic narrowing suggests that trade is on track to contribute significantly to second-quarter GDP, after subtracting 0.2 percentage points from the economy’s annualized growth in the first quarter.

The sharp fall in inbound shipments is linked to a new wave of US reciprocal tariffs that took effect early in the month, curbing demand for foreign goods.

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2. Trump Signs Order Blocking Foreign Students from Harvard

President Donald Trump signed an executive action barring foreign nationals from entering the US to study at Harvard University, accusing the school of failing to enforce discipline on campus and allowing a surge in criminal activity.

The order may allow the administration to bypass a ruling by US District Judge Allison Burroughs, who recently granted Harvard temporary permission to continue enrolling international students — a decision that drew a sharp rebuke from the White House for allegedly overstepping judicial authority.

Trump claimed that Harvard had responded to a federal request for information on violent or threatening behavior among foreign students by naming just three individuals.

“Harvard’s actions show that it either is not fully reporting its disciplinary records for foreign students or is not seriously policing its foreign students,” the president said.

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3. Tesla Shares Tumble as Musk-Trump Feud Boils Over

Tesla Inc. shares plunged as the ongoing feud between CEO Elon Musk and President Donald Trump escalated into a public war of words between two of the world’s most influential figures.

Trump said Thursday he was “very disappointed” by Musk’s vocal criticism of the administration’s sweeping tax policy bill. Musk responded on social media, calling it “false” that he had prior knowledge the plan would eliminate EV tax credits critical to Tesla’s business.

He continued with more sharply worded posts, accusing Trump of showing “such ingratitude” for Musk’s previous support and assistance to the administration.

The president’s tax overhaul would phase out the $7,500 federal EV tax credit for some Tesla models by year-end — seven years earlier than planned — which JPMorgan estimates could shave $1.2 billion off Tesla’s annual profit.

Tesla shares fell as much as 9.2% intraday as the exchange unfolded. The feud underscores the risks posed to Tesla by Trump’s policies.

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4. Circle Soars 235% in Debut, Valuation Hits $26 Billion

Circle Internet Group Inc. shares surged as much as 235% in their trading debut after the stablecoin issuer and some of its shareholders raised nearly $1.1 billion in an initial public offering that was upsized twice due to strong investor demand.

The stock climbed to as high as $103.75 on Thursday, compared to its IPO price of $31. Shares were halted multiple times for volatility and were trading at $94.54 as of 1:32 p.m. in New York.

If Circle closes at or near the peak, it would mark the biggest first-day gain for a U.S. IPO raising more than $100 million since CureVac NV’s 249% jump in 2020, according to Bloomberg data.

Circle and its backers, including co-founder and CEO Jeremy Allaire, sold 34 million shares — up from 32 million initially — with the offering priced above the marketed range of $27 to $28.

The trading values Circle at about $21 billion based on outstanding shares. Including stock options, RSUs, and warrants, the company’s fully diluted valuation reaches approximately $26 billion.

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5. Trump, Xi Agree to Restart High-Level US-China Trade Talks

Donald Trump and Xi Jinping have agreed to launch a new round of high-level trade negotiations between the US and China, as the two leaders attempt to de-escalate commercial tensions that have rattled the global economy.

The two presidents spoke by phone on Thursday, marking their first known conversation since Trump returned to the White House in January. The call followed repeated efforts by Washington to engage Beijing in trade discussions.

“It was a very good call,” Trump told reporters in the Oval Office. “We’ve straightened out any complexity — it’s very complex stuff. I think we’re in very good shape with China and the trade deal.”

Earlier on Truth Social, Trump had commented there “should no longer be any questions respecting the complexity of Rare Earth products,” referencing the recent friction over China’s limited exports of the key materials. Both countries had accused each other of violating terms of a deal struck in Geneva last month.

Trump said the upcoming economic talks will be led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer.

He added that Xi had invited him to visit China and that he had “reciprocated.” “As presidents of two Great Nations, this is something that we both look forward to doing,” Trump said.

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6. Procter & Gamble to Cut 7,000 Jobs

Procter & Gamble said it will eliminate 7,000 jobs over the next two years as part of a cost-cutting initiative and effort to streamline its brand portfolio, responding to weak consumer sentiment and tariff-related uncertainties.

The US consumer goods company, known for brands like Gillette and Tide, revealed at a Paris-based conference on Thursday that it would cut 15% of its non-manufacturing workforce. The company also plans to divest several product categories and undergo organizational restructuring.

P&G didn’t specify where the job reductions will take place.

The group has been grappling with sluggish demand and heightened caution from shoppers in the wake of President Donald Trump’s tariffs. In April, the company lowered its full-year sales and profit guidance, citing “a more nervous consumer reducing consumption.”

P&G now expects organic sales growth of 2% in 2025, down from its earlier projection of 3% to 5%.

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7. Nvidia posts 69% revenue surge

Nvidia reported a 69% year-on-year jump in revenue to $44.1 billion for the quarter ending April 27, surpassing Wall Street’s forecast of $43.3 billion, even as it absorbs a major revenue hit from US export restrictions targeting China.

The chipmaker, central to the global AI infrastructure boom, expects revenue of about $45 billion for the current quarter, plus or minus 2%. That range puts its guidance slightly below the Bloomberg consensus estimate of $45.5 billion. Nvidia shares rose 5% in early Thursday trading.

The company is navigating the fallout from President Donald Trump’s renewed trade tensions with China, including export controls introduced in April that barred Nvidia from selling its AI chips specifically tailored for the Chinese market. Nvidia said those curbs led to a $4.5 billion charge last quarter and an additional $2.5 billion in missed sales. The company also expects to lose roughly $8 billion in Chinese revenue this quarter as a result.

CEO Jensen Huang said demand for Nvidia products remains “incredibly strong,” but he reiterated criticism of the US government’s export control measures on a call with analysts.

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