Good morning investors!
Today we cover:
The cost of US-Iran war
Clarity Act not approved
Poverty reduces!
📊 Economy and News
Iran War Costs U.S. $246 Million Per Day
The U.S. war with Iran has cost the Pentagon an estimated $38.1 billion through Aug. 1—an average of about $246 million per day over the first five months—and could add another $2–3 billion for each extra month of fighting.
More than half the total went to replacing missiles and munitions. Higher flying hours accounted for $10.4 billion and elevated fuel prices another $2.7 billion. The conflict has also used as much as two-thirds of U.S. missile-defense interceptors since June 2025, mainly to help defend Israel. Replenishing those stocks would take at least five years even with higher production, the CBO warned—leaving the U.S. vulnerable in a potential conflict with China over Taiwan.
Energy-market disruptions from reduced oil and gas shipments through the Strait of Hormuz are expected to add 0.5 percentage points to overall inflation (measured by the Fed’s preferred PCE index) by early 2027, with core inflation up 0.3 points as higher energy costs spread through the economy. Gasoline and other fuels will account for roughly 40% of that price impact.
A separate Defense Department inspector general report reached similar cost figures and detailed additional damage: hundreds of buildings at bases across the Middle East hit, plus dozens of aircraft lost or damaged, including four F-15Es, one F-35A, seven KC-135 tankers, seven helicopters and more than 30 drones.
Global hits:
Hong Kong unveils first five-year plan to add jobs, homes, align closer to mainland China.
Japan August imports jump as oil prices lift costs, exports stay firm.
BOJ set to raise interest rates to 31-year high as inflation risks loom.
Reminder: The 10-year yield reached 5.041%, the highest level since July 2007.
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📈 Stocks
S&P 500 5,620.85 (+0.42%)
DJIA 40,890.49 (+0.14%)
NASDAQ 17,918.99 (+0.57%)
BRENT CRUDE 76.14 (-1.37%)
* Prices as of Mar 3rd, 12:20 AM UTC
Senate Blocks Clarity Act, Dealing Blow to Crypto Regulation Push
The Senate failed to advance the Clarity Act, blocking the crypto industry’s main push for a comprehensive market-structure bill. The procedural cloture vote drew only 50 yes votes to 49 no—well short of the 60 needed—leaving the legislation stalled after months of bipartisan talks.
Republican leaders had released a revised version over the weekend that added ethics rules aimed at limiting public officials’ crypto profits, responding to Democratic concerns about President Trump and his family. Those changes fell short. Sen. Ruben Gallego (D-Ariz.), a key negotiator, said the GOP prioritized protecting the president’s ability to profit over crafting workable rules.
Bitcoin fell about 3%, while Coinbase and Circle shares dropped 8% and 10%. The bill would have split oversight between the SEC and CFTC, set registration rules, and tightened anti-money-laundering protections. Industry leaders had hoped it would provide regulatory certainty and attract long-term capital.
With midterms seven weeks away and Congress heading into recess, the measure is effectively dead for this year. Crypto groups may now focus on agency actions or target senators who opposed the bill through political spending.
Interesting: Meta CEO Mark Zuckerberg sides with Nvidia’s Huang on AI safety and slowdown debate.
OpenAI has been engaging with other AI companies, including Anthropic and Google, about how they can work together to address safety concerns.
The House of Representatives is expected to vote on the Ratepayer Protection Act, a bipartisan bill aimed at preventing rising utility costs related to data center development.
Surprising: AWS said it’s unable to restore service to cloud-computing facilities in Bahrain and parts of the UAE, marking its first public update since April. In other news, oil fell as traders weighed an unexpected increase in U.S. crude inventories against worries over supply disruption.
💵 Personal Finance
U.S. Median Household Income Hits Record High in 2025 as Poverty Rate Declines
Real median household income in the United States rose 2.6% to a record $87,460. The official poverty rate also fell by 0.5 percentage points to 10.2%, with 34.5 million people living below the poverty line. The poverty threshold for a family of four stood at $32,970.
The figures mark the highest inflation-adjusted median household income since the Census Bureau began tracking the measure in 1967. Gains were broadly distributed across demographic groups, with median income rising 3.0% for White households, 2.9% for non-Hispanic White households, and 4.8% for Black households. Asian and Hispanic households saw no statistically significant change. Post-tax median household income increased 3.1% to $76,060.
Poverty reductions were concentrated among families with children and working-age households. The official child poverty rate reached a historic low of 13.4%. The Hispanic poverty rate also hit a record low of 13.9%. By contrast, the Supplemental Poverty Measure (SPM), which accounts for government benefits, taxes, and necessary expenses, remained statistically unchanged at 13.1%.
The Census Bureau did not attribute the improvements to specific policies, though underlying data point to a strengthening labor market as a contributing factor. Median earnings for full-time, year-round female workers rose 3.2%, while those for men showed no significant change, narrowing the gender earnings gap to 83.9%.
These 2025 figures predate more recent economic pressures, including elevated inflation (consumer prices rose 3.4% year-over-year in August) and average 30-year fixed mortgage rates climbing above 7%. The data also come as the Federal Reserve weighs interest-rate decisions amid ongoing concerns about price stability.
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