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Matt Davis — Need2Know Chedditor

News You Need2Know

• Consumers feel pinch, AI props up the economy

• This guy wants to build a private space station

• JPMorgan forced out Citi’s new head of banking, sa …

• Fidelity and Vanguard rule out SPLC donations

• Palantir’s $239 chore coat sold out in minutes

• Poll of the day: It’s World-Famous-574™ time

• Poll of the day: The moral high ground to a pulp

What’s the stock market up to, eh?*

$SPX ( ▲ 1.02% ) $DJI ( ▲ 1.62% ) $NDX ( ▲ 1.59% )  

Companies mentioned in today’s newsletter

$C ( ▲ 0.29% )  $JPM ( ▲ 1.29% )  $PLTR ( ▲ 0.83% )  

Consumers feel pinch, AI props up the economy

The U.S. economy just delivered its first major scorecard for 2026, and the results highlight a massive shift in what’s driving growth. In the first quarter, the U.S. gross domestic product (GDP) grew at a 2% annual rate, rebounding from a late-2025 government shutdown. However, this still fell short of Wall Street’s 2.2% expectations.

So, what's fueling the growth? AI. Businesses are spending heavily on AI intellectual property and equipment, driving a 10.4% surge in nonresidential fixed investment. But experts warn this tech-driven momentum faces headwinds. As Joseph Brusuelas, chief economist at RSM, told the Wall Street Journal, “What you have here is an AI-inspired GDP increase, that in coming quarters will see a drag.”

That drag is already appearing as the economy's main engine—the American consumer—taps the brakes. Consumer spending growth slowed to a 1.6% pace as the ongoing Iran conflict sent gas prices soaring by 44%, severely damping consumer sentiment. Andre Schulten, P&G’s chief financial officer, accurately summed up the mood on Main Street, telling the Journal, “The consumer is still a little bit muted.”

With inflation complicating the Federal Reserve's pathway to interest rate cuts, the AI boom might have to continue carrying the heavy economic lifting. Or, you know…the whole house of cards could come crashing down. Depends on your glass-half-full-empty perspective, I guess?

Quote of the Day

This guy wants to build a private space station

The commercial space economy is rapidly taking off, and Dr. Jonathan Cirtain, CEO and president of Axiom Space (above) is at the forefront of the new frontier. While government agencies like NASA are increasingly setting their sights on deep-space exploration to the Moon and Mars, companies like Axiom are stepping in to build the necessary infrastructure for a permanent human presence in “low-Earth orbit.”

Axiom Space's most ambitious project is a private commercial space station. The company is currently producing modules that will initially attach to the International Space Station (ISS) in 2028 to demonstrate safety. By 2029, Cirtain expects to have these modules fully operational and independent, ready to "start hosting humans in a permanent way."

Why build a commercial space station? For Cirtain, it is all about leveraging microgravity for scientific and commercial advancements. He envisions a near future where the station is utilized to manufacture pharmaceuticals and life science devices. As Cirtain explains, the ultimate goal is “taking space as a resource and using it to make things to our benefit here on Earth." Backed by a recent $350 million capital raise, Axiom's cutting-edge outpost is closer to reality than ever.

JPMorgan forced out Citi’s new head of banking, says report

Citigroup $C ( ▲ 0.29% ) recently touted the hiring of Vis Raghavan, offering him a massive $52 million pay package to become their new head of banking. What they didn't mention to investors? Raghavan was actually on his way out at JPMorgan $JPM ( ▲ 1.29% ) just days prior, ousted after years of complaints regarding his volatile behavior, according to a new report in the Financial Times.

While some saw him as a tough taskmaster who got results, others described Raghavan as an intimidating bully who would "explode" in his glass-walled office. According to insiders, he openly berated employees, calling them "ignorant," "inadequate," and even a "waste of calories." Two people alleged he described his leadership style as “grab them by the balls,” although he denied using such language through a spokesperson. In another incident, he reportedly told junior bankers an inappropriate story about a former college crush, crassly adding that now "she was fat."

Despite this track record, which also included bending company policy at JPM to hire a close family member, Citi swiftly nabbed the executive. In response to the allegations, Citi fiercely defended their new star: “It’s disappointing the FT is publishing such frivolous, tabloid coverage . . . built on anonymous smears,” they wrote. “Vis is a proven leader with a well-earned track record for driving results.”

Perhaps the proof is in the pudding. Citigroup’s stock is up more than JPMorgan’s since it made the controversial hire:

Song of the Day: Foo Fighters, ‘Window’

Kicking off their first stadium rock tour just two years after Dave Grohl admitted he had a secret child, this song from the band’s new album shows that no-frills punk, played fast and loud, suits them much better than middle-of-the-road dad rock (however many kids, secret or otherwise, that dad-rock rocks to). Can’t get a refund on Grohl’s autobiography, “The Storyteller,” though, can I? The one in which he extolled his virtues as a perfect father to his three legitimate daughters, and in which he sorta glossed over any others… 🤦🏻

Fidelity and Vanguard rule out SPLC donations

Two of the biggest sponsors of donor-advised funds, Fidelity Charitable and Vanguard Charitable, have officially blocked account holders from directing funds to the Southern Poverty Law Center (SPLC). The abrupt halt comes after the Justice Department recently indicted the civil rights nonprofit for alleged financial crimes and fomenting racism.

Fidelity Charitable told its customers, who have more than 350,000 charitable giving accounts that allow them to maximize tax savings while giving money to eligible nonprofits, that they could not donate to the center through the accounts anymore.

Vanguard also cited the ongoing federal investigation, noting the allegations "may call into question their ability to carry out their tax-exempt charitable purpose." Vanguard spokeswoman Elaine Kenig clarified that they do not evaluate the merit of the charges: "If we become aware an organization has been charged with a crime by state or federal authorities, we pause grant-making while the matter is pending."

The indictment accuses the SPLC of fomenting racism by paying hate-group informants—intelligence the SPLC says the federal government previously used to enforce the law. Although the indictment has proved somewhat controversial.

“This is, above all, a deeply dishonest indictment—politically motivated, intellectually bankrupt, and designed to leave a lasting false impression in the minds of people who will never look past the headline,” Harry Litman, a former US Attorney and deputy assistant attorney general for the DOJ, wrote on his Substack. “It is a narrative that is not just false but Orwellian, turned exactly on its head by people who purposely intend to deceive.”

Questioning the funds' preemptive actions, Boston College law professor Ray Madoff argued: “If you or I can still make an outright donation on our own, why can’t the funds do so on our behalf? My answer is, if we can, then they can.”

Palantir’s $239 chore coat sold out in minutes

I’m down to earth. You can tell because I’d quite like a $239 French chore coat sold by a Big Brother-esque military contractor. Palantir, $PLTR ( ▲ 0.83% ) the data analysis firm known for helping the government track deportations and securing massive defense contracts, has bravely stepped into the world of high-end fashion. Move over, bland corporate polos—it's time for some working-class cosplay.

Available in bright blue and black, this heavy twill bleu de travail was originally designed for 19th-century French laborers. Now, it is the perfect garment for an elite software company to bravely demonstrate its commitment to “re-industrializing America.” Palantir insists the jacket is entirely “not political” and is simply meant for everyday folks who “love Palantir and are aligned with our mission.”

The coat may not be political, but Palantir’s recent manifesto called for, among other things, reinstating the draft. It also said: "The postwar neutering of Germany and Japan must be undone. The defanging of Germany was an overcorrection for which Europe is now paying a heavy price."

So. You know.

Who exactly is the target demographic for the merch of a company whose CEO’s favorite motto is literally “Dominate”? A New York writer, Brendan Loosey, suggested it appeals perfectly to a “left-leaning, performative male type that would be in Prospect Park reading Infinite Jest.” 

That’s a pretty sick burn, Brendan. I’ll admit it.

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Should you check your 401(k) today?

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Yes

Poll of the day: It’s World-Famous-574™ time

Poll of the day: The moral high ground to a pulp

We asked: “Should Disney's CEO Sanction Jimmy Kimmel for Making a Joke About Melania Trump?”

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ Yes, absolutely. The First Amendment was always meant to have an asterisk that says "*unless it hurts the president's feelings." (44)
🟨🟨⬜️⬜️⬜️⬜️ No. I'm old enough to remember when conservatives thought "cancel culture" was bad, but I guess that was like three news cycles ago. (157)
⬜️⬜️⬜️⬜️⬜️⬜️ No, but I do think Disney should sanction whoever thought "The Life of a Showgirl" was a good album title. (14)
🟨⬜️⬜️⬜️⬜️⬜️ No. I'd rather my corporate overlords bow to shareholder pressure than White House pressure, thank you very much. (87)
🟩🟩🟩🟩🟩🟩 No. Melania signed up for public life. If she wanted to avoid jokes, she should have married someone less... Donald Trump. (357)
⬜️⬜️⬜️⬜️⬜️⬜️ I don't care, I just want to know if this affects my Disney+ subscription price. (50)
709 Votes via @beehiiv polls

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