đŸ€© Inflation jumps less than expected

and Oracle beats expectations

Good morning investors! The market closed in the red yesterday after an impressive three day streak.

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📊 Economy and News 

U.S.-China Trade Deal Secures Rare Earth Supply, Stabilizes Tariffs

U.S. President Donald Trump announced a trade agreement with China, ensuring the supply of rare earths and magnets, critical for automotive and defense industries.

The deal, awaiting final approval from Trump and Chinese President Xi Jinping, follows high-level talks in London. U.S. tariffs on China will remain at 55%, while China’s tariffs on the U.S. stay at 10%.

The agreement addresses China’s earlier export restrictions on rare earths, with the U.S. offering concessions like access for Chinese students to American universities.

Commerce Secretary Howard Lutnick confirmed the tariff levels are fixed, but uncertainties remain, including China’s six-month licenses for rare earth exports, which could impact U.S. supply chains.

Global hits:

Mortgage situation: Mortgage rates held steady last week, with the average 30-year fixed-rate mortgage (up to $806,500) edging up to 6.93% from 6.92%. Refinance applications surged 16% week-over-week and were 28% higher than last year. Home purchase applications rose 10% for the week, up 20% from a year ago.

Inflation jumps less than expected

U.S. inflation in May 2025 increased by 0.1%, less than the anticipated 0.2%, resulting in an annual rate of 2.4%.

Core CPI, a key indicator for the Federal Reserve, rose 0.1% monthly and 2.8% annually, below expectations.

Declines in energy (-1%), gasoline (-2.6%), and vehicle prices mitigated increases in food and shelter (both 0.3%).

Despite concerns over tariffs, their impact on inflation remains limited, likely due to existing inventories.

Vice President JD Vance urged the Federal Reserve to cut interest rates, citing easing inflation. However, reduced BLS data collection due to a federal hiring freeze may introduce volatility in future reports.

Reminder: Republicans’ tax and spending bill includes a new savings account for children that comes with a $1,000 deposit from the federal government. Earnings in “Trump Accounts” grow tax-deferred, and qualified withdrawals are taxed at the long-term capital-gains rate.

What do you think of the new tax bill?

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📈 Stocks

S&P 500 6,022.24 (-0.27%)
DJIA 42,865.77 (-0.0026%)
NASDAQ 19,615.88 (-0.50%)
BRENT CRUDE 69.77 (+4.33%)
* Prices as of Jun 12th, 12:20 AM UTC

Oracle beats estimates

Oracle shares surged 8% in after-hours trading after reporting Q4 fiscal 2025 results that beat Wall Street expectations, with strong cloud growth projections.

Key Financials (Q4 Fiscal 2025, ended May 31)

  • Adjusted EPS: $1.70 vs. $1.64 expected (LSEG)

  • Revenue: $15.9 billion vs. $15.59 billion expected (LSEG)

  • Revenue Growth: 11% year-over-year

  • Net Income: $3.43 billion ($1.19/share) vs. $3.14 billion ($1.11/share) last year

  • Cloud Services & License Support Revenue: $11.7 billion vs. $11.59 billion expected (StreetAccount)

  • Cloud & On-Premises License Revenue: $2.01 billion vs. $1.82 billion expected (StreetAccount)

CEO Safra Catz projects cloud infrastructure revenue growth of over 70% in fiscal 2026, up from 52% in Q4. Fiscal 2026 revenue forecast is $67 billion vs. $65.18 billion expected.

Exciting: GM to invest $4 billion in U.S. plants amid tariffs for Mexican-produced vehicles. Elsewhere, Meta launches AI ‘world model’ to advance robotics, self-driving cars. Lastly, Bessent floats extending tariff pause for countries in ‘good faith’ trade talks.

Nvidia shines: Nvidia announced partnerships with European firms to bolster AI infrastructure and software, aiming to expand its global AI presence. German startup DeepL claims Nvidia’s latest chips can translate the entire internet in just 18 days, while Nvidia’s CEO highlights quantum computing’s nearing “inflection point.”

Controversial: Disney and Universal sue AI image company Midjourney for unlicensed use of Star Wars, The Simpsons and more.

RFK Jr. names 8 new members to CDC vaccine committee after ousting entire panel.

Social Security benefits may rise by 2.5% next year, based on recent government inflation data.

đŸ’” Personal Finance

AI Skills Outpace Degrees in Job Market

PwC’s 2025 AI Jobs Barometer reveals employer demand for degrees is fading faster in AI-exposed roles, like financial analysts, where skills now matter more than past education.

AI accelerates skill turnover 66% faster in these fields, making degrees “out of date” sooner. Workers can upskill at home using AI tools, says PwC’s Joe Atkinson, urging practical AI use to stay competitive.

While formal education still shapes critical thinking, embracing AI is key to future-proofing careers.

Here’s an interesting video on the topic:

💰 Be a Better Investor

"Making money is art and working is art and good business is the best art."

Andy Warhol

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