Hello Capitalists,

Markets surged today after above expectation job numbers and the Big Beautiful Bill taking another step through Congress.

• DOW: 44785.00 - (⬆️0.68)✅

• S&P: 6272.30 - (⬆️0.72) ✅

• NASDAQ: 20584.00 - (⬆️0.94) ✅

• CBOE VIX Volatility Index: 16.40 (⬇️0.24) ⚠️⬇️

Here’s everything you need to be following today:

Trump unloads: “Anybody would be better than Jay Powell”

President Donald Trump took his feud with Federal Reserve Chair Jerome Powell to a new level on Wednesday, demanding his immediate resignation.

• Trump called for Jerome Powell to resign after the FHFA director accused Powell of giving "deceptive" testimony to Congress - The president reposted a Bloomberg article about FHFA Director Bill Pulte's call for a Powell investigation to Truth Social, writing "'Too Late' should resign immediately!!!" in reference to his frequent criticism of Powell being slow on rate cuts.

• Trump sent Powell a direct note accusing him of costing the U.S. "a fortune" by keeping rates artificially high - White House Press Secretary Karoline Leavitt read Trump's message saying "Jerome, you are, as usual, too late. You have cost the USA a fortune and continue to do so" and demanding Powell "lower the rate by a lot" since there's "no inflation."

• The FHFA director called for Powell's removal over allegedly false statements about the Fed's $2.5 billion headquarters renovation - Bill Pulte cited Sen. Cynthia Lummis's claim that Powell made "factually inaccurate statements" about luxury amenities like "plush private dining room and elevator, skylights, water features and roof terrace," calling it "malfeasance" worthy of removal "for cause."

• House Judiciary Chair Jim Jordan suggested Congress might investigate Powell - When asked about Pulte's call for investigation, Jordan said "everything is on the table" and "we'll take a look at that," noting it's Congress's "constitutional duty" to provide oversight of the executive branch, though he said they haven't discussed it specifically yet.

Job growth surges in June and beats expectations

U.S. job growth exceeded expectations in June with nonfarm payrolls rising by 147,000, while the unemployment rate dropped to 4.1%, signaling a resilient labor market despite economic uncertainties, the Bureau of Labor Statistics reported Thursday.

• Job numbers up: Nonfarm payrolls increased, surpassing the Dow Jones forecast of 110,000, with state government and health care sectors driving gains, while federal government jobs continued to decline.

• Unemployment falls: The unemployment rate fell to he lowest since February, defying expectations of a rise to 4.3%, though the drop was partly due to a decrease in labor force participation.

• Earnings still growing: Average hourly earnings rose 0.2% month-over-month, slightly below the expected 0.3%, with annual wage growth at 3.7%, reflecting moderate wage pressures.

The Big Beautiful Bill takes another step toward becoming law

The Republican-controlled House narrowly advanced President Donald Trump's sweeping tax and spending megabill Thursday, overcoming internal party divisions in a dramatic 219-213 vote to begin final debate, marking a critical step toward delivering on Trump's second-term policy agenda before his self-imposed July 4 deadline.

• House Advances Megabill: The Republican-led House navigated significant GOP defections and back-room negotiations as well as significant pressure from the White House to get this far.

• Senate's Changes Create Tension: The Senate's version of the bill, with a $5 trillion debt limit increase and deeper Medicaid cuts compared to the House's $4 trillion proposal, sparked resistance among House Republicans, though leadership pushed forward without further tweaks.

• Market Response Muted: U.S. futures showed minimal reaction to the vote, with S&P 500 futures up 0.16%, Nasdaq 100 futures rising 0.25%, and Dow Jones Industrial Average futures gaining 0.12% shortly after the procedural vote.

UK markets in chaos as left wing finance minister sobs in Parliament.

U.K. markets plunged into turmoil Wednesday after Finance Minister Rachel Reeves was seen crying in Parliament, sparking speculation about her potential resignation and raising fears of political instability, with bond yields spiking and the pound tumbling against the dollar and euro.

• Market Reaction to Reeves' Distress: U.K. bond yields surged and the British pound weakened against the dollar and euro after Finance Minister Rachel Reeves appeared visibly upset during a parliamentary session.

• Political Uncertainty and Government Response: Prime Minister Keir Starmer, initially unaware of Reeves' distress, later expressed full support for her, dismissing rumors of her dismissal as a "personal matter," while the Labour Party faces scrutiny for potential fractures amid recent government U-turns on welfare reforms.

• Economic Challenges Ahead: The government’s reversal on welfare cuts has strained its fiscal strategy, leaving Reeves with limited options to balance the budget without increasing borrowing or taxes, as analysts warn of tough decisions looming for the upcoming Autumn Budget.

CEO admits AI will replace many jobs soon

Ford Motor Co. CEO Jim Farley warned that artificial intelligence could eliminate half of all white-collar jobs in the U.S., as corporate leaders increasingly embrace AI to replace human workers, signaling a seismic shift in the job market, according to a recent industry analysis.

• AI-Driven Job Cuts: Amazon and Salesforce already integrating AI agents to reduce staffing needs in roles such as software engineering and marketing.

• Economic and Social Impacts: The rapid adoption of AI is raising concerns about mass unemployment, particularly for entry-level and mid-level white-collar roles, potentially reshaping career ladders and exacerbating economic inequality.

• Industry Responses and Challenges: While some firms are investing in re-skilling programs to mitigate job losses, skepticism remains about AI's current capabilities, with examples like Klarna reversing aggressive AI replacement strategies due to customer demand for human interaction.

Is Powell dragging his feet over his tenure?

President Donald Trump’s search for a new Federal Reserve chair is hitting a snag as current Chair Jerome Powell remains silent on whether he will step down when his term ends.

• Powell’s Uncertainty: Federal Reserve Chair Jerome Powell has not clarified whether he will leave his position when his term expires in May 2026, creating uncertainty for President Trump’s plans to replace him with a chair favoring rate cuts.

• Trump’s Pressure: Trump and his allies are intensifying efforts to oust Powell, with the president publicly calling for his immediate resignation and exploring aggressive options to reshape the Federal Reserve, though these face legal and political hurdles.

• Fed’s Stance: Powell maintains focus on economic stability, emphasizing data-driven decisions on interest rates despite Trump’s criticism and proposed tariffs, which Powell says are delaying potential rate cuts.