Good morning investors! The S&P 500 soared to a new record high, capping the second quarter with an impressive 10% gain, with some expecting July to be another impressive month.
Today we cover:
Musk isn’t happy with Trump
Meta and Apple make big changes
Robinhood is creating waves
Do you expect another brawl between Musk and Trump?
📊 Economy and News
Elon Musk’s War on Trump’s Megabill: A Fiscal Rebellion
Elon Musk, the billionaire behind Tesla and SpaceX, has unleashed a fiery campaign against President Donald Trump’s massive tax-and-spending bill, branding it “DEBT SLAVERY.”
Despite pouring $290 million into Trump’s 2024 campaign, Musk is now threatening to unseat Republicans who support the legislation, which he slams for its $5 trillion debt ceiling hike and cuts to clean energy subsidies.
Targeting House Republicans like Andy Harris and Chip Roy, Musk’s X posts call for a new political party to prioritize fiscal responsibility.
As the Senate debates amendments, Musk’s influence looms large, particularly in the House, where his financial clout could sway primaries. Meanwhile, a Yale Budget Lab report warns the bill would slash Medicaid and SNAP, hitting low-income households hardest while boosting wealthier ones, deepening the divide.
Some others are also ringing warning bells. Wind and solar projects starting after 2027 with excessive Chinese components may face higher taxes, increasing industry costs by $4-7 billion, per the American Clean Power Association. This could lead to nearly 2 million job losses in construction, says a trade group.
Some, however, argue that this bill could increase disposable income for many households, particularly higher earners, fostering spending and investment. Also, The American Bankers Association "strongly supports" many provisions within the bill calling it "unquestionably" good for the U.S. economy.
The clock ticks toward a July 4 deadline, with the nation watching this clash of titans.
Global hits:
Australian home prices jump in June as interest rates fall with prices jumping twice as fast as wages.
Saudi wealth fund annual profit tumbles 60% as high rates, inflation bite.
China’s manufacturing activity contracts for a third month amid deflation woes. On the other hand, China's June factory activity unexpectedly expands, private survey shows.
German inflation eases to 2.0% in June, defying forecasts. Whereas, Kenya inflation at 3.8% year-on-year in June.
Reminder: White House says Trump wrote Powell to urge lower rates.
Tariffs: The United States will resume trade negotiations with Canada immediately after Ottawa scrapped its digital services tax targeting U.S. technology firms. Elsewhere, EU reportedly willing to accept universal 10% tariff but with sector exemptions.
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📈 Stocks
S&P 500 6,204.95 (+0.52%)
DJIA 44,094.77 (+0.63%)
NASDAQ 20,369.73 (+0.48%)
BRENT CRUDE 67.81 (-0.24%)
* Prices as of Jul 1st, 12:20 AM UTC
Tech Giants Pivot in AI Strategies
Meta has launched Meta Superintelligence Labs, a new division aimed at advancing personal superintelligence. This announcement helped Meta hit a record high of $747.90.
Led by former Scale AI CEO Alexandr Wang and ex-GitHub CEO Nat Friedman, the initiative consolidates Meta’s foundation model and FAIR teams. The announcement follows Meta’s $14.3 billion investment in Scale AI and a 5% workforce reduction targeting “low performers.”
On the other hand, Apple is exploring a shift in its AI strategy for Siri, potentially replacing its in-house AI with Anthropic’s Claude or OpenAI’s ChatGPT after internal models underperformed.
Bloomberg reported that Apple developers tested these external models on its cloud infrastructure. If adopted, this approach would integrate third-party large language models for Siri’s responses, similar to its current handling of some web-based queries. The news boosted Apple’s stock, despite fan disappointment at WWDC25 two weeks ago, where updates on Siri’s AI were delayed further.
Trouble? The State of Utah has filed a lawsuit against Snapchat, accusing the platform of exploiting teenagers with addictive features that facilitate sextortion and drug trafficking. The suit also claims Snapchat violates children’s privacy laws, raising serious concerns about the app’s impact on young users.
Good to know: NASA plans to stream rocket launches on Netflix starting this summer. Elsewhere, Oracle surged nearly 4% following the announcement of a massive $30 billion-per-year cloud services deal, set to kick off in 2028. Also, Palantir and Accenture Federal Services have joined forces to transform U.S. government operations through artificial intelligence.
Home Depot wins bidding war to buy GMS for $4.3 billion; including debt, the transaction is valued at about $5.5 billion.
Look here: Moderna’s flu vaccine shows positive late-stage trial results, paving way for combination Covid shot.
Joby Aviation has delivered its first electric vertical takeoff and landing, or eVTOL, aircraft to the United Arab Emirates with plans to start an air taxi service in the Middle East nation next year.
🔐 Crypto
Bitcoin $107,340 (+0.17%)
Ether $2,489 (+0.10%)
Solana $154 (+0.21%)
Total market cap $3 33T(+0.27%)
* Prices as of Sep 3rd, 12:20 AM UTC
Robinhood's Bold Crypto Push
Robinhood unveiled a slate of new crypto products for its EU and global customers. The star of the show? Tokenized U.S. stock assets, allowing EU investors to buy into giants like Nvidia via a zero-commission, crypto-style experience on the Arbitrum blockchain. Robinhood's stock soared 12.77% to an all-time high on the news.
Looking ahead, Robinhood aims, still in development. In the U.S., the company rolled out crypto staking and introduced tokenized shares of pre-IPO firms like SpaceX and OpenAI, hot on the heels of Republic's similar move last week.
CEO Vlad Tenev, channeling James Bond in a sleek preview video, arrived at the event with a briefcase in hand, adding flair to the announcement.
A catch? Robinhood’s terms don’t explicitly state that buyers of these tokenized stocks own actual U.S. shares. But as crypto enthusiasts might say, “not your keys, not your coins.” Still, this setup isn’t entirely different from buying ADRs for foreign stocks like Alibaba, where physical share delivery is rarely requested.
Also, stablecoin issuer Circle has applied for a national bank charter.
Elsewhere, BitMine’s stock skyrocketed over 300% after securing $250M in a private placement to fund an Ethereum treasury strategy
💵 Personal Finance
How Much Should You Spend on Entertainment?
Entertainment is essential for relaxation and enjoyment, but overspending can strain your finances. Determining the right amount to allocate depends on your income, financial goals, and lifestyle.
Financial experts often recommend the 50/30/20 budgeting rule:
50% of your income goes to necessities (housing, utilities, groceries).
30% covers wants, including entertainment (streaming services, dining out, hobbies, etc.).
20% is for savings and debt repayment.
For example, if your monthly take-home pay is $3,000, you could allocate up to $900 (30%) for entertainment and other discretionary spending. However, this doesn’t mean spending it all on entertainment alone—balance it with other wants like travel or dining.
Factors to Consider
Income and Expenses: If your income is lower or fixed costs are high, you may need to reduce entertainment spending to prioritize savings or debt.
Financial Goals: Saving for a house, retirement, or an emergency fund? Limit entertainment to 10-15% of your income to stay on track.
Lifestyle: If entertainment like concerts or gaming is a big part of your life, you might allocate more, but cut back elsewhere (e.g., cooking at home instead of dining out).
Free Alternatives: Explore low-cost or free options like community events, libraries, or hiking to stretch your budget.
Practical Tips
Set a Monthly Cap: Decide on a fixed entertainment budget (e.g., $100-$200) and stick to it.
Track Spending: Use apps to monitor where your money goes and avoid overspending on subscriptions or impulse purchases.
Prioritize Value: Choose activities that bring the most joy. A $15 movie night with friends might be more fulfilling than a $50 concert you’re lukewarm about.
Review Subscriptions: Cancel unused streaming services or share plans with family to save.
💰 Be a Better Investor
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.