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U.S. economic growth rebounded in the first quarter of the year from a sluggish fourth quarter, according to the Commerce Department’s latest estimate.

The Bureau of Economic Analysis (BEA) on Thursday released its advance estimate of first-quarter GDP, which showed the economy grew at an annualized rate of 2% in the three-month period including January, February and March.

That figure was lower than the expectations of economists polled by LSEG, which had estimated 2.3% GDP growth in the first quarter.

It comes after the U.S. economy grew at a roughly 2.1% rate in 2025. The second half of last year saw 4.4% annualized growth in the third quarter and 0.5% growth in the fourth quarter.

FED’S FAVORED INFLATION GAUGE REMAINED ELEVATED IN MARCH

The BEA reported that the main contributors to the rise in GDP in the first quarter were investment, exports, consumer spending and government spending. Imports increased in the first quarter.

Most of the investment was focused on equipment, particularly computers and related equipment amid the artificial intelligence (AI) buildout, as well as intellectual property products, including software and private inventories at retail and wholesale trade firms. 

Investment in residential and nonresidential structures declined and partly offset those gains.

GAS PRICES SOAR TO HIGHEST POINT SO FAR DURING UNSETTLED CONFLICT WITH IRAN

The BEA reported that the main contributors to the rise in GDP in the first quarter were investment, exports, consumer spending and government spending. (Tom Fox/The Dallas Morning News via Getty Images)

The rise in government spending was led by federal employee compensation increasing after the end of the government shutdown that occurred in the fourth quarter, when it declined as federal workers missed paychecks.

Rising consumer spending was attributed mainly to services led by healthcare, including both hospital and nursing home services along with outpatient services.

Real final sales to private domestic purchasers, which is the sum of consumer spending and gross private fixed investment, increased 2.5% in the first quarter after a more modest increase of 1.8% in the fourth quarter.

FEDERAL RESERVE LEAVES INTEREST RATES UNCHANGED AS POWELL’S CHAIRMANSHIP NEARS END

Investment in AI data centers has helped boost GDP. (iStock)

What experts are saying

Michael Pearce, chief U.S. economist at Oxford Economics, said the “core of the economy remained solid in Q1, driven by the AI buildout and the tax cuts beginning to feed through. Those factors will continue to drive growth over the rest of the year, but the jump in energy prices will take some of the shine off what would otherwise have been a strong year for the economy.

“Some of the strength of consumer spending in March is payback for the poor weather at the start of the year. Fiscal stimulus is more than outweighing the drag from higher energy prices for now, but that balance will begin to shift in the months ahead, especially with gas prices still climbing.”

Gregory Daco, chief economist at EY-Parthenon, said that while “AI investment promises to reinforce organic productivity growth in the coming years, its near-term impact through increased capex, infrastructure buildout and energy demand is likely to add to inflationary pressures.”

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“Private sector demand showed firmer momentum than in Q4 2025, but it reflects an uncomfortable balance where the three narrow A-pillars of growth — affluent consumers, AI-investment and asset price gains — mask an uneven foundation where headline gains look good, but hide underlying fragilities,” Daco said.

Apple CEO Tim Cook says he is stepping down after 15 years as chief executive because three key factors aligned: Apple’s current performance, its product roadmap and the readiness of his successor, John Ternus.

Cook said the timing came down to a clear internal assessment of the company’s position and future.

“I looked at three things,” Cook told FOX Business. “I looked at the performance of the company in the first half, and it’s been remarkable. I wanted to announce at a point in time where our roadmap was incredible, and so there would be some great things happening in the future. 

“And I wanted to announce at a time that John was ready, and John is ready. And, so, all three of those things intersected, and it felt to me like the right time.”

APPLE CEO TIM COOK TO STEP DOWN IN MAJOR LEADERSHIP SHAKEUP; SUCCESSOR NAMED

Tim Cook, right, will become Apple’s executive chairman, and John Ternus, left, will become Apple CEO Sept. 1, 2026. (Reuters)

Apple announced last week that Cook will step down as CEO on Sept. 1 and transition to executive chairman. Ternus, Apple’s head of hardware engineering, will take over as the company’s next chief executive.

Cook is entering the final stretch of his CEO tenure with a record second quarter. Apple revenue jumped 17%, ahead of analyst estimates, while iPhone sales increased 22% from a year earlier. Cook said iPhone sales could have been even stronger if not for supply constraints that limited availability.

The war in Iran is also affecting Apple’s business, Cook said, creating pressure on both revenue and costs.

WHO IS JOHN TERNUS, SET TO SUCCEED TIM TOOK AS APPLE’S CEO?

Apple employees help customers at the Fifth Avenue Apple Store on new product launch day Sept. 19, 2025, in New York City. (Michael M. Santiago/Getty Images)

“It creates both revenue pressure, as you would guess, in the region, and it creates input costs across the world,” Cook said. Oil prices have risen to their highest level in four years amid supply disruptions in the Middle East and concerns around the Strait of Hormuz.

LEADERSHIP CHANGE AT APPLE SPARKS INDUSTRY AND WALL STREET REACTIONS AS COOK TRANSITIONS ROLES

Cook also addressed investor concerns that Apple is perceived to be behind in the artificial intelligence race, as some Silicon Valley competitors spend far more aggressively on AI infrastructure.

“If you look at our year-over-year growth, we’ve really ramped significantly,” Cook said, adding that Apple uses “a hybrid model” that includes “both our own data centers and other people’s data centers.”

Tim Cook succeeded Steve Jobs as CEO in 2011. (Alyssa Pointer/Reuters)

Microsoft, Amazon, Meta and Alphabet have collectively forecast more than $700 billion in spending this year, with much of that investment directed toward AI data centers.

Asked how important AI is in his day-to-day priorities, Cook said it is “at the top of my list, because I see it as a huge opportunity for us and what we deliver to our users.”

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Another issue weighing on Apple investors is the surge in memory chip prices, which have climbed roughly 500% since August. Cook said Apple’s memory costs were higher in the March quarter and are reflected in the company’s gross margin.

And, Cook said during the tech giant’s earnings call on Thursday that the company would seek refunds for duties paid under President Donald Trump’s tariffs.

“We plan to reinvest any amount we receive back into U.S. innovation and advanced manufacturing,” Cook said. “These would be new investments and would be in addition to our prior commitments in the U.S.”

Apple has one more earnings report before Cook’s CEO tenure ends Sept. 1. During his 15-year run as CEO, Apple returned nearly 2,000% to shareholders and increased its market value by more than 1,000%.

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DES MOINES, Iowa — Two lucky tickets sold in Indiana and Kansas matched all six numbers in Wednesday night’s Powerball drawing to split a $143 million jackpot, while dozens of other players across the country became instant millionaires with $1 million and $2 million prizes in one of the luckiest drawings in recent memory.

The winning numbers drawn Wednesday, April 29, were 3, 19, 35, 51 and 67, with a Powerball of 15. The Power Play multiplier was 2x, boosting secondary prizes for players who opted into the add-on. The jackpot carried an estimated cash value of $65.2 million before taxes.

Powerball officials confirmed the two jackpot-winning tickets were sold in Indiana and Kansas. Each winner will receive approximately $71.5 million before taxes if they choose the annuity option paid over 30 years, or a lump-sum cash payout of roughly $32.6 million each after federal and state taxes, depending on their residency. Winners have up to 180 days in most states to claim their prizes.

The drawing produced an extraordinary number of high-tier winners. A total of 62 tickets matched the first five white balls for the $1 million prize, with another 27 tickets that also included the Power Play option doubling their winnings to $2 million. That means nearly 90 new millionaires were created in a single night across more than 20 states.

The $2 million prizes (Match 5 plus Power Play) were sold in: Arkansas, Illinois, Indiana (five winners), Kansas, Louisiana (five), Mississippi, New Jersey (four), Oregon (three), Pennsylvania (two), Rhode Island, South Carolina and Wisconsin (two).

The $1 million prizes (Match 5 without Power Play) landed in: Arizona, Arkansas, California, Georgia, Illinois (three), Indiana (14), Kansas (five), Kentucky, Louisiana (six), Michigan, Minnesota, Missouri, Nebraska (two), New Jersey (14), Oregon, Pennsylvania (five) and Wisconsin (four).

Indiana emerged as one of the biggest winners of the night, with 14 tickets claiming $1 million and five more securing $2 million, in addition to its share of the jackpot. New Jersey followed closely with 14 $1 million winners and four $2 million prizes.

The surge in big prizes reflects strong ticket sales as the jackpot climbed from $130 million earlier in the week. Powerball, played in 45 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands, typically sees sales accelerate as jackpots grow into nine figures.

Lottery officials have not yet released exact retailer locations for the jackpot tickets, but winners in Indiana and Kansas are already being urged to sign the back of their tickets, secure them in a safe place and contact their state lottery offices for guidance on claiming. Anonymity rules vary by state — some allow winners to remain private while others require public disclosure.

Financial advisers caution that sudden wealth brings complex decisions. Winners should assemble a team including a tax professional, financial planner and attorney before claiming. The lump-sum option provides immediate funds but triggers higher immediate taxes, while the annuity spreads payments and taxes over decades.

This drawing stands out for its breadth of winners. While most large Powerball jackpots produce one or two top-tier matches, Wednesday’s combination of numbers apparently resonated widely, creating what some are calling one of the “luckiest” recent drawings in terms of millionaire creation.

The jackpot now resets to an estimated $20 million for Saturday’s drawing, with a cash value of about $9.1 million. Sales typically slow after a jackpot is hit, but interest often rebuilds quickly.

Powerball’s popularity stems from its massive top prizes and the relative ease of play: players select five numbers from 1 to 69 and one Powerball from 1 to 26. Tickets cost $2, or $3 with the Power Play option. Odds of hitting the jackpot are approximately 1 in 292.2 million, making Wednesday’s dual winners especially rare.

State lotteries use proceeds for education, infrastructure, public safety and other programs. In many states, a significant portion supports schools or veterans’ programs. Wednesday’s drawing will contribute millions more to those causes.

For players who didn’t win big but matched fewer numbers, smaller prizes remain available. Matching just the Powerball pays $4, while the Power Play boosts lower-tier prizes as well. Full prize details and retailer locations for secondary winners are available on state lottery websites.

Lottery experts note that while jackpots capture headlines, the real story often lies in the distribution of prizes. Wednesday’s drawing distributed tens of millions in prizes beyond the jackpot, spreading wealth across the country and highlighting the game’s broad appeal.

As the two jackpot winners step forward in coming weeks, their stories will likely emerge — tales of routine ticket purchases that changed lives overnight. For now, the focus remains on celebration for the dozens of new millionaires who can begin planning life-changing moves, from paying off debts to funding dreams or supporting family.

The next Powerball drawing is scheduled for Saturday, May 2, at 10:59 p.m. Eastern time. While the jackpot is smaller, players still have a chance at life-altering prizes, especially with the possibility of it rolling over again.

Wednesday’s results serve as a powerful reminder that someone has to win — and on this night, fortune smiled on players from coast to coast. Whether claiming a share of the $143 million or one of the many million-dollar prizes, these winners represent the enduring allure of the lottery: the dream that a single ticket can rewrite a life story in an instant.

If any of the Iranian thugs from the Islamic Revolutionary Guard Corps think a minor bump up in gas prices is gonna kill the American economy, and force President Trump to withdraw our military and make some watered-down Obama-Biden deal, those thugs had better think twice. Not only is Mr. Trump not going to back down on his key demands to end Iran’s nuclear capability, and transfer the enriched uranium to America from Iran, and stop the state-sponsored terrorism, and long-range missile building, but the economic fact is the American economy is doing quite well despite the bump in gas prices.

It’s the Iranian economy that’s sinking and will continue to sink with the United States Navy’s blockade, basically ending Iran’s money and ability to pay their IRGC troops. The IRGC controls about a third of Iran’s economy. And roughly half of their energy revenues. They’ve been stealing and looting from the Iranian people for decades. It’s like a mafia-run operation. And Mr. Trump and Treasury man Scott Bessent are putting an end to it. Secretary Bessent spoke to me last night about Operation Economic Fury.

“The president gave the operation, gave the order for maximum pressure campaign more than a year ago,” Mr. Bessent said. “It was that pressure that brought the Iranian economy to a standstill,” and “the largest bank in Iran collapsed. The central bank had to monetize the debt, and that created massive inflation.” He added that “their currency is down about 60 or 70 percent versus the U.S. Dollar, so they’re in the middle of a currency crisis. And what we’re doing now is we’ve been in a long race and we are sprinting for the finish line.”

Now, as far as the American economy. Lots of good economic numbers today and a record-breaking stock market. Over the past year, real GDP has increased 2.7 percent. If the Democrats hadn’t shut down the economy last winter, we’d have had growth higher than 3 percent. Yet inside that number the One, Big, Beautiful Bill and its 100 percent cost expensing has produced an amazing business investment boom. It’s up by 17 percent in the first quarter and almost 10 percent over the past year. It’s huge. And don’t forget record-breaking tax refunds from the One, Big, Beautiful Bill used by more than 50 million Americans, which is offsetting the temporary gas price spike, and even then consumer spending doing better than you think, up nearly 2.5 percent over the past year.

And more recently in April, Redbook consumer sales year to year in April rose almost 7 percent. Our energy dominance is producing record-breaking exports of oil, diesel and gasoline fuels. Here at home we’re setting oil production records.

Here’s one other thing, inflation numbers came in a bit on the high side today, but call me skeptical, the Cleveland Fed’s median consumer price index is up only 2.7 percent over the past year. And its 16 percent trimmed mean, a weighted average of recent inflation statistics, is up 2.6 percent. Unit labor costs rose by 2.4 percent. And the big, big story is profits, the mothers’ milk of stocks and the lifeblood of the economy. Profits drive business, and business drives the economy. Profits and profit margins are breaking records, running 15 percent or better, and that’s driving productivity. And that’s producing an economy that’s the envy of the world.

Once the world normalizes, the American economy will grow even faster, and the inflation rate will move even lower. Remember this, though, it is the strong American economy that is creating the resources to destroy gruesome Nazi-like regimes such as Iran. Never bet against the Trumpian America First economy.