IMF Warns: Economic Slowdown Ahead 🌍

The
Daily Trade

Hey Daily Traders,

The International Monetary Fund (IMF) has sounded the alarm on an impending economic slowdown, largely attributed to ongoing trade tensions and U.S. tariffs. With global growth projected to dip to 2.8% in 2025, the slowest since the pandemic, investor confidence is teetering as trade negotiations, particularly with China, remain stalled.

Meanwhile, Monarch Casino & Resort shines with record first-quarter results, demonstrating the resilience of the gaming industry amid economic uncertainties. In real estate, South Dakota's rejection of the Summit Carbon Solutions pipeline permit underscores the complex balance between environmental goals and regulatory hurdles. On the crypto front, Trump Media and Crypto.com's partnership for ETF launches marks a bold venture into digital assets, while federal cannabis reforms signal potential shifts in U.S. marijuana regulation.


Here's what's happening today:

Question

With the IMF warning of a global economic slowdown due to trade tensions, do you believe these tariffs will ultimately harm or benefit the U.S. economy in the long run?

Reply to this email with your answer

Stock Market

IMF Warns of Economic Slowdown Amid Trade Tensions
The International Monetary Fund (IMF) has revised its global economic outlook, projecting a slowdown in growth due to the impact of U.S. tariffs on international trade. The IMF forecasts that global growth will decline to 2.8% in 2025, down from 3.3% in 2024, marking the slowest growth since the COVID-19 pandemic. The U.S. economy is also expected to experience a downturn, with GDP growth dropping to 1.8% from 2.8% last year. The tariffs, which have been imposed on a wide range of countries, have resulted in increased import costs and inflationary pressures.

While the U.S. continues to negotiate with various countries to ease tariff burdens, the trade tensions with China remain unresolved. The IMF's report highlights that China's growth forecast has been slashed to 4.0% due to the trade standoff with the U.S. Treasury Secretary Scott Bessent has expressed optimism for a de-escalation in tensions, but formal negotiations with China have yet to commence. The ongoing trade disputes are causing significant uncertainty in the financial markets, impacting investor confidence and economic stability globally.

Key Takeaway
  • The IMF's warning of a global economic slowdown due to U.S. trade tariffs highlights the significant impact of trade tensions on global growth.
  • This matters because it underscores the interconnectedness of global economies and the potential for trade policies to disrupt economic stability.
Stock Market

Monarch Casino & Resort has reported record financial results for the first quarter of 2025, with net revenue reaching $125.4 million, a 3.1% increase from the previous year. The company also saw an 8.7% rise in net income and a 12.9% increase in diluted earnings per share. Monarch attributes its strong performance to effective operating strategies and a focus on technological advancements to enhance guest satisfaction. The company's properties, including Monarch Black Hawk in Colorado and Atlantis in Reno, continue to attract mid-to-upper-tier guests, contributing to increased market share.

Monarch's financial health is further supported by a strong balance sheet and free cash flow, enabling ongoing investments in property upgrades and dividend payments. The company has also announced a quarterly cash dividend of $0.30 per share. Monarch's strategic focus on expanding its market presence and enhancing operational efficiencies positions it well for sustained growth in the competitive casino industry.

Key Takeaway
  • Monarch Casino's record financial results highlight its successful growth strategies and strong market position.
  • This is important as it demonstrates the company's ability to generate sustained revenue and profit growth, making it an attractive investment in the gaming sector.
Real Estate

South Dakota Rejects Permit for $8.9 Billion Carbon Pipeline
South Dakota's Public Utility Commission has denied a permit for the proposed $8.9 billion carbon capture pipeline by Summit Carbon Solutions, citing an incomplete application. The decision puts the future of the massive Midwest project in limbo, as the pipeline is crucial for transporting carbon emissions from ethanol plants across several states to storage sites in North Dakota. Summit plans to refile its application with a revised route to address landowner concerns and comply with new state regulations banning eminent domain for such projects.

The pipeline is a key component of efforts to reduce the carbon footprint of the ethanol industry, which is heavily concentrated in the Midwest. However, the denial highlights the challenges faced by large infrastructure projects that must balance environmental goals with regulatory and landowner considerations. Summit remains committed to the project, emphasizing its importance for the regional economy and the ethanol industry.

Key Takeaway
  • The rejection of the carbon pipeline permit in South Dakota underscores the regulatory and landowner challenges facing large infrastructure projects.
  • This matters as it highlights the complexities of balancing environmental initiatives with local regulations and property rights.
Crypto

Trump Media and Technology Group (TMTG) has finalized an agreement with Crypto.com and Yorkville America Digital to launch a series of exchange-traded funds (ETFs) through its Truth.Fi brand. These ETFs will include digital assets and securities with a focus on American industries. The partnership aims to diversify TMTG's portfolio into financial services and digital assets, with the ETFs expected to launch later this year, pending regulatory approval. The collaboration highlights TMTG's strategic move into the financial sector, leveraging Crypto.com's platform for global distribution.

This partnership marks a significant step for TMTG as it expands beyond its social media and streaming platforms. By entering the financial services and digital assets market, TMTG aims to capitalize on the growing interest in cryptocurrencies and American-focused investment products. The ETFs and associated financial products are part of a broader strategy to invest up to $250 million in new ventures, showcasing TMTG's commitment to innovation and growth in the fintech space.

Key Takeaway
  • Trump Media's partnership with Crypto.com for ETF launch signifies its strategic entry into financial services and digital assets.
  • This is important as it highlights the growing convergence of traditional finance and cryptocurrency markets, offering new investment opportunities.
Stock Market

Cannabis Caucus Proposes Federal Reforms for Marijuana Regulation
Congressional Cannabis Caucus co-chair Dave Joyce has introduced legislation to remove marijuana from the list of federally controlled substances, allowing states to set their own policies. The STATES 2.0 Act aims to create a more logical approach to cannabis regulation, aligning federal laws with the policies already in place in many states. The proposal reflects the growing acceptance of cannabis use across the U.S., with nearly all states permitting some form of cannabis consumption.

The legislation seeks to address the inconsistencies between state and federal cannabis laws, which have created legal challenges and hindered economic growth. By empowering states to regulate cannabis according to their needs, the bill aims to enhance public safety, support scientific research, and promote economic opportunities. The proposed reforms have garnered support from various organizations, emphasizing the need for clarity and consistency in cannabis regulation.

Key Takeaway
  • The proposed federal cannabis reforms aim to align state and federal regulations, addressing legal inconsistencies and promoting economic growth.
  • This matters as it reflects the evolving landscape of cannabis legalization and its potential impact on public policy and the economy.

Today's Technical Analysis

Undervalued
ACHC
Acadia Healthcare Company, Inc.
Volume: 4.82M shares | Price: $20.60

Technical Indicator Score: 100% Buy
Out of the 8 technical indicators used to analyze this stock, 8 indicated buy signals.
RSI
Buy
MFI
Buy
WillR
Buy
AO
Buy
CCI
Buy
BBANDS
Buy
ULTOSC
Buy
STOCH
Buy

Overvalued
HTZ
Hertz Global Holdings, Inc Common Stock
Volume: 70.45M shares | Price: $8.52

Technical Indicator Score: 75% Sell
Out of the 8 technical indicators used to analyze this stock, 6 indicated sell signals, 2 indicated neutral signals.
RSI
Sell
MFI
Sell
WillR
Sell
AO
Hold
CCI
Sell
BBANDS
Sell
ULTOSC
Sell
STOCH
Hold

Undervalued
UNH
UNITEDHEALTH GROUP INCORPORATED (Delaware)
Volume: 10.13M shares | Price: $427.18

Technical Indicator Score: 63% Buy
Out of the 8 technical indicators used to analyze this stock, 5 indicated buy signals, 3 indicated neutral signals.
RSI
Buy
MFI
Hold
WillR
Buy
AO
Hold
CCI
Buy
BBANDS
Buy
ULTOSC
Buy
STOCH
Hold

Undervalued
PLUG
Plug Power Inc.
Volume: 113.57M shares | Price: $0.87

Technical Indicator Score: 63% Buy
Out of the 8 technical indicators used to analyze this stock, 5 indicated buy signals, 3 indicated neutral signals.
RSI
Buy
MFI
Hold
WillR
Buy
AO
Buy
CCI
Buy
BBANDS
Hold
ULTOSC
Hold
STOCH
Buy

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Technical Indicator Information

Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30

Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20

Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80

Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75

Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal

Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20

Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100

Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band

Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price

Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0

Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30

Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI

Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25

Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.

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