Good morning investors! The market went up yesterday as US-Iran continue negotiations.
Today we cover:
US manufacturing index goes higher
The government wants equities
Recession proof your money
📊 Economy and News
US Manufacturing Hits 4-Year High in May Amid Supply Worries
U.S. manufacturing activity surged in May to its highest level in four years, according to S&P Global’s flash PMI.
The Manufacturing PMI rose to 55.3 in May from 54.5 in April, beating economists’ expectations of 53.8. A reading above 50 signals expansion.
Key Drivers:
Businesses aggressively built safety stocks to guard against potential shortages and higher prices caused by the ongoing U.S.-Iran conflict, which has disrupted shipping in the Strait of Hormuz.
Input prices jumped sharply, and supplier delivery times lengthened significantly.
Manufacturers passed on higher costs, pushing output prices to their highest level since 2022.
The services PMI edged slightly lower to 50.9, leaving the composite PMI unchanged at 51.7. S&P Global’s chief economist noted that the economy is on track for modest growth of around 1% annualized in Q2, with recent order growth slowing.
Global hits:
Mexico, EU to sign trade deal Friday to diversify supply chains as Mexico’s central bank says Q1 contraction above expectations.
Hungary to reform taxes and create level playing field for investors.
UK to cut VAT on summer attractions and children’s meals to 5%.
Global war impact: Mideast war dampens India private sector growth, services pick up.
Japan April exports rise 14.8% year/year despite Middle East conflict.
Euro zone growth set to slow in 2026 as Middle East conflict fuels inflation with Germany facing Q2 stagnation.
Reminder: Freddie Mac 30-year mortgage rate rises to 6.51%. Furthermore, White House postpones executive order on AI.
Jobless claims: US weekly jobless claims fell by 3,000 to 209,000 for the week ended May 16, slightly better than economists’ forecast of 210,000, signaling continued resilience in the labor market. Lastly, Netflix to launch its first daily live show with ‘The Breakfast Club’.
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📈 Stocks
S&P 500 7,445.72 (+0.17%)
DJIA 50,285.66 (+0.55%)
NASDAQ 26,293.10 (+0.087%)
BRENT CRUDE 104.01 (-0.09%)
* Prices as of May 21st, 12:20 AM UTC
Trump Administration to Invest $2 Billion in Quantum Computing with Equity Stakes
The Trump administration is preparing a $2 billion funding package for quantum computing, awarding grants and taking equity stakes in nine U.S. companies to strengthen domestic technology and compete with China.
IBM is expected to receive the largest portion at approximately $1 billion, GlobalFoundries around $375 million, and companies including D-Wave Quantum, Rigetti Computing, Quantinuum, and Infleqtion roughly $100 million each.
AI news: Pentagon reportedly testing AI models in bid to replace Anthropic’s Claude. In other news, Anthropic, Microsoft in talks for AI chip deal after $5 billion investment. Finally, AMD to invest $10 billion in Taiwan’s AI industry to advance top-end chips.
Surprising: China is getting machines ready to join the workforce.
Workday jumps 14% as it bumps up margin forecast on AI strength.
Meta, Broadcom and others to launch $125 million semiconductor research hub at UCLA.
Stellantis targets 35% North American sales increase by 2030, led by Ram Trucks and Chrysler revival.
💵 Personal Finance
Recession-Proof Your Life: 5 Key Steps
Recessions are a normal part of the economic cycle, and while you can’t avoid them entirely, you can build financial resilience to minimize their impact.
Here are the five essential steps:
Assess your cash flow — Track income, essential vs. non-essential spending, and identify areas to cut.
Pay off high-interest credit card debt — Prioritize this to reduce financial drag.
Build an emergency fund — Aim for 3–6 months of essential expenses (more if your job is unstable).
Maximize current benefits — Use employer perks, get the full 401(k) match, and understand your severance and unemployment options.
Prepare for retirement risks — If nearing retirement, ensure you have 5–7 years of expenses covered by cash and bonds to avoid selling stocks in a downturn.
Preparation now helps you avoid panic-driven decisions when a recession hits.
💰 Be a Better Investor
“Spending money to show people how much money you have is the fastest way to have less money.”
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