Good morning investors! The market fell yesterday as the Iran situation fails to solve.
Today we cover:
Mortgage rates climb
Google comes with new goods
Trump accounts
📊 Economy and News
Mortgage Rates Climb to Highest Level Since July
The average 30-year fixed mortgage rate rose 7 basis points to 6.75% on Tuesday — the highest level since July 31.
Rates have surged 33 basis points in the past 10 days and are now 46 basis points above the April low of 6.29%. The increase follows an earlier spike at the start of the Iran war, when rates jumped from 5.99% in early March to 6.64% by month-end.
Analysts note that bond markets are pressuring politicians to end the conflict, as higher rates threaten housing affordability. For a median $420,000 home with 20% down, monthly principal and interest payments have increased by $167 (from $2,012 to $2,179).
While rates remain below last year’s 7%+ levels, homebuilders continue offering incentives to support demand.
Global hits:
Japan manufacturers’ mood edges up in May, services sector slips.
Canada inflation accelerates to 2.8% in April but misses forecasts.
UK government bond yields climb across all maturities.
IIF cuts South Africa 2026 growth forecast as Middle East conflict bites.
Look here: U.N. cuts global growth forecast to 2.5%, blames Middle East crisis.
Trump’s past tax returns get protection from IRS enforcement under ‘lawfare’ fund settlement.
Nashville to host Super Bowl in 2030 at new Nissan Stadium.
Higher yields: US 30-year Treasury yield tops 5.19%, highest since before the financial crisis. Moreover, rising U.S. Treasury yields have altered the outlook on when the next interest rate hike from the Federal Reserve might come. Traders on prediction market platform Kalshi think there’s a 63% chance a hike comes by July 2027. There’s 43% odds it will come this year.
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📈 Stocks
S&P 500 7,353.61 (-0.67%)
DJIA 49,363.88 (-0.65%)
NASDAQ 25,870.71 (-0.84%)
BRENT CRUDE 111.23 (-0.53%)
* Prices as of May 20th, 12:20 AM UTC
Google Unveils AI Smart Glasses and New Gemini Models at I/O 2026
Google revealed its first audio smart glasses, set for release later this year. The glasses, developed in partnership with Samsung, Warby Parker, and Gentle Monster, will feature Gemini AI built-in. They deliver private audio responses, support both Android and iOS, and can handle tasks like navigation, ordering food, reading messages, and generating images.
Unlike Meta’s popular Ray-Ban smart glasses, Google’s version focuses on audio rather than visual displays.
Major AI Announcements
Gemini 3.5 Flash: A faster, lighter model that becomes the default for the Gemini app and Search. It offers strong performance at roughly half the cost of top competitors.
Gemini Spark: A new personal AI agent that can reason across apps and take actions on the user’s behalf (currently in beta).
Omni: A new “world model” designed to simulate physical environments, edit videos, and generate realistic imagery.
Interesting: Microsoft’s biggest India data center on track to go live in mid-2026.
OpenAI announces new Guaranteed Capacity offering for customers to secure compute.
Surprising: Polymarket launches private company trading so investors can speculate on Anthropic, OpenAI. Elsewhere, ACA enrollment may fall by 5 million people this year.
💵 Personal Finance
529 Plans Remain a Powerful, Underused Alternative to Trump Accounts
Starting July, Trump Accounts (530A accounts) will offer parents a new tax-deferred way to save and invest for their children, with $1,000 “free money” seed deposits from the Treasury for babies born 2025–2028.
However, Certified Financial Planners point out that 529 plans are significantly underutilized — only 23% of parents currently use them — despite major advantages.
Why 529 Plans Are Powerful
Savings grow tax-free and qualified withdrawals are tax-free.
Many states offer tax deductions or credits on contributions.
Expanded uses now include: college, graduate school, vocational programs, apprenticeships, K-12 tuition (up to $20,000/year), tutoring, student loan repayment, and up to $35,000 rollover to a Roth IRA.
Funds can be transferred to another beneficiary if needed.
“529s are a very powerful tool,” said CFP Andy Esser of Edward Jones.
Trump Accounts vs 529s
Trump Accounts provide easy “free money” from the government and philanthropists, but come with restrictions: 100% invested in U.S. stocks (higher risk), locked until age 18, and subject to IRA withdrawal rules afterward.
Experts recommend opening a Trump Account to capture the seed funding if eligible, while still using 529 plans for their flexibility and tax benefits.
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