Tesla’s efforts to boost profits may not reverse selloff [Video]

A stronger-than-expected retail sales data from the US cemented the idea that the US economy remains too strong for the Federal Reserve (Fed) to cut the rates in summer.

Then, China posted a surprisingly stronger-than-expected GDP number this morning, showing that the Chinese economy grew 5.3% in the first quarter, comfortably higher than a 4.8% growth penciled in by analysts. But industrial production missed estimates, house prices continue to fall and consumer spending slowed significantly during March. The CSI 300 slid and Shanghai’s Composite fell almost 1.5%.

A strong Chinese GDP may have not boosted appetite for Chinese stocks, but it sure boosts worries that rising Chinese growth – regardless of where growth comes from – will fuel global inflation and make major central banks think twice about their rate cutting plans. The US 2-year yield is preparing to jump sustainably above the 5% level, the 10-year yield advanced past the 4.60% and the US dollar index extends gains.

In individual stocks, Tesla announced to cut 10% of its global workforce and Apple’s iPhone shipments fell nearly 10% in Q1.