MARKET RECAP
- US stocks fell by 2.58%, international stocks advanced by 0.69%, and bonds declined by 0.43%.
- The 30-year bond yield broke 5%, closing at 5.04%. The 10-year is at 4.51%, that is up 28 basis points in May.
- The Atlanta Fed’s GDPNow projects 2.4% growth in Q2.
- Trump turned the positive momentum of the previous week on its head on Monday when he threatened a 50% tariff on all EU goods. He doesn’t learn.Trump should be working towards zero percent tariffs on both sides.
- The House passed the “Big Beautiful [budget] Bill,” which will add an estimated $3 trillion to the deficit, leading to an increase in yields. Need less new tax breaks have been added, such as no tax on tips (cost $125 billion over the decade), no tax on overtime ($62.5 billion), car-loan interest deduction ($57 billion), tax relief for seniors ($25 billion), increased state and local tax deduction cap, and others.
- Trump is passing up very rare opportunity to actually help get our fiscal house in order. He controls both the Senate and the House, and they do whatever he says. He should have implemented real spending cuts, and small tax increases (like a percent or so).
- Senator Ron Johnson plans to make a major effort to stop the bill.
SCOREBOARD
