MARKET RECAP
- Dow was down 1%, SPX down 0.3% and the NASDAQ down 0.1%. The dollar was down to levels dating back to 2000 on the impact of Trump’s tariff moves.
- Trump is back to his crazy tariffs, threatening a 200% tariff on pharmaceutical imports and 50% on copper, sending the metal to a record high price.
- The One Big Beautiful Bill Act, passed last week, is estimated to increase the deficit by $3.3 trillion over the next decade, according to the CBO. Trump and the Republicans insist this won’t happen. In either case, both political parties continue to ignore the deficit. Small changes now can make a big difference later. However, we are not taking any action to correct the problem. And when at some future point, the situation becomes too big to ignore, it is going to be much more difficult to fix. As the late economist Stanley Fischer once said, financial crises “take much longer to develop than you expect, and then…they happen much more quickly than you expect.”
- Trump continues to go after Fed Chair Jerome Powell, in his push for lower interest rates. Blaming Powell for not lowering rates, but the Fed has held off to see the impact of tariffs on inflation. Trump would help his cause if he didn’t resume has campaign to raise tariffs to ridiculous levels, and didn’t just pass a bill that will increase the deficit by trillions.
- NVDA broke above $4 trillion in market value.
BITCOIN – Bitcoin broke through resistance and is trading at 118,800.
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