Good morning, investors! Stocks were mixed yesterday as oil gained.
Today we cover:
Trump attacks Powell
Tesla in trouble
More stock news
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📊 Economy and News
Trump Targets Fed Chair Powell, Signals Replacement Plans
U.S. President Donald Trump intensified his criticism of Federal Reserve Chairman Jerome Powell, calling him "terrible" and hinting at a replacement before Powell's term ends in May 2026.
Speaking at the NATO summit, Trump said he has three or four candidates in mind, including former Fed Governor Kevin Warsh, Kevin Hassett, Christopher Waller, and Treasury Secretary Scott Bessent.
Trump has repeatedly criticized Powell’s cautious approach to interest rate cuts, urging a significant reduction to lower federal interest costs. Powell, however, signaled no rush for a July cut, citing evolving economic conditions and potential inflation from higher tariffs.
This comes weeks after Trump said he had no plans to fire Powell.
Global hits:
Australia’s core inflation hits 3-1/2-year low, greenlighting July rate cut. On the other hand, UK public’s long-term inflation expectations rise in June
Dollar lowest since 2021 against euro, gains on yen as Sterling hits new highs in more than three years.
Israel’s Central Bank chief says Iran war to boost economy as the stock market shatters records.
New Home Sales Hit Seven-Month Low
U.S. new home sales plummeted 13.7% in May 2025 to a seasonally adjusted rate of 623,000 units, the largest drop since June 2022. Unsold homes surged to 507,000 units, the highest since October 2007, with a 9.8-month supply.
Sales fell sharply in the South (-21.0%), West (-5.4%), and Midwest (-7.1%), but rose 32.1% in the Northeast.
Median home prices increased by 3.0% to $426,600. Economists predict weaker housing activity in Q2 2025.
Also check: Investors returned to US long-term bond funds in May after a fall in April. Also, Trump threatened a tough trade deal for Spain after it refused to meet NATO defense spending target. Lastly, you could soon use crypto to help get a mortgage under new admin plan.
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📈 Stocks
S&P 500 6,092.16 (-0.00033%)
DJIA 42,982.43 (-0.25%)
NASDAQ 19,973.55 (+0.31%)
BRENT CRUDE 67.68 (+1.75%)
* Prices as of Jun 26th, 12:20 AM UTC
Tesla continues to lose ground in Europe
Tesla experienced a -3.8% drop in its stock price following a report indicating a 28% year-over-year decline in electric vehicle (EV) sales in Europe.
The report highlights that Tesla was outperformed by all other major manufacturers ranked. Notably, SAIC, a Chinese state-owned automaker, sold twice as many vehicles as Tesla. Additionally, Chinese brand BYD is rapidly closing the gap, having outsold Tesla in April and falling just 40 vehicles short of Tesla’s sales in May.
The U.S. EV maker has sustained brand and reputational damage in part due to CEO Elon Musk’s incendiary rhetoric and political activity. This was the fifth consecutive month that the company seen a decline in sales in Europe.
Tesla’s revamped Model Y compact sport utility vehicle is expected to help sales as it has proven to be a success in Norway.
Do you expect Tesla to bounce back?
Tech World: Nvidia Hits Record High, Micron Reports, and More
Nvidia (+4.33%) reached a new record high close following Loop Capital Markets Analysts' price target increase during the company’s annual investor day. Loop projected Nvidia’s market cap could reach $6T, surpassing its current $3T valuation, which recently overtook Microsoft as the market’s highest.
Micron surged +1% in after-hours trading after reporting Q3 adjusted operating income of $2.49B, exceeding Wall Street’s $2.13B estimate. The semiconductor firm forecasts current-quarter revenue between $10.4B-$11B, well above the $9.89B consensus. Micron’s strong results lifted related stocks like Nvidia, AMD, and SanDisk in after-hours trading.
Palantir dipped slightly after hitting an all-time high, poised to join the Russell 1,000 after a 460% yearly gain. Jefferies noted Palantir’s shift from the Russell mid-cap growth index could reduce the index by 11%.
Google rose +2.35% after announcing Gemini CLI, an AI agent for coding and content generation, reinforcing tech’s AI-driven momentum.
Intel is terminating its automotive division and laying off most of its employees in the unit as part of a comprehensive cost-reduction strategy.
Hewlett Packard Enterprise introduced its Gen12 servers, powered by AMD chips, featuring doubled memory capacity and improved security enhancements. Despite the advancements, retail investors displayed limited enthusiasm for the announcement.
Check this: Shell denies reports it is in talks to take over BP. Also, dating app Bumble is laying off 30% of its workforce sending the stock +25% higher. Also, the company raised its Q2 revenue forecast. Lastly, General Mills dropped 5.11% after a disappointing earnings report, citing cautious consumer behavior. The maker of Cheerios and Progresso projects net sales to decrease 1% or increase 1%, with adjusted earnings expected to fall 10-15%.
💵 Personal Finance
Is war a good time to invest? - Part I
This isn’t a topic that we wanted to cover but it seems to be the need of the hour given the current situation in Ukraine and Israel. Some experts think this war will escalate soon, so in this currently unpredictable situation, would it be wise to invest in stocks?
There is no one answer to this question as it depends on several factors, including your investment goals, risk tolerance, time horizon, and the specific circumstances surrounding the conflict.
Here are a few things to consider:
Diversification: Diversifying your investments across various asset classes, including stocks, bonds, real estate, and commodities, can help spread the risk.
Long-Term Perspective: Investors looking to invest money for a good few years usually do not have to worry about the changing geopolitical situation as they will not have much of an impact on your portfolio. Historically, markets have shown resilience and the ability to recover from geopolitical crises over time. But, it can take a while.
Risk Tolerance: Assess your risk tolerance. Geopolitical conflicts can introduce uncertainty and volatility into financial markets. If you are uncomfortable with the potential for significant short-term fluctuations in the value of your investments, you may want to consider a more conservative allocation.
Research and Analysis: Stay informed about the specific conflict and its potential implications for the global economy and financial markets. Things are changing rapidly these days. Nobody expected the Palestine-Israel conflict to escalate like this and now some experts believe Iran might jump on the bandwagon, which may push oil prices, thus impacting the global economy. Analyze how the conflict may affect industries, companies, and regions where you have investments. Keep an eye on what others have to say but don’t be very quick to jump the gun.
💰 Be a Better Investor
Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this.
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👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.