Hello Capitalists,

Job numbers above expectations caused the markets to surge, Trump wants a full percentage point cut in interest rates, Tesla is in a tailspin after Musk’s spat with Trump, Stablecoin IPO launch takes Wall street by storm, Target goes patriotic and your summer BBQ is about to get cheaper.

Let’s break it down for you:

• The Top Line Market Numbers:

• DOW: 42709.42 (⬆️0.92) 

• S&P: 5995.71 (⬆️0.95)

• NASDAQ: 19519.64 (⬆️1.15)

Markets jump after Trump/Elon sparring match, here’s why

The latest jobs report for May 2025 is out, and it’s a big deal. This report from the Bureau of Labor Statistics tells us whether businesses are still hiring and if the labor market is staying strong, which impacts everything from consumer spending to Federal Reserve decisions on interest rates.

• Job Growth Above Expectations: The U.S. added 139,000 jobs in May, beating forecasts of 125,000, showing the labor market is still chugging along despite a slowdown from April’s 177,000.

• White House Press Secretary Karoline Leavitt celebrated the numbers as proof of Trump's "America First Economic Agenda," claiming all new private sector jobs went to "American-born workers" and that the economy is "BOOMING" with jobs up, unemployment down, and "inflation is dead."

  

• Unemployment Steady, Wages Up: The unemployment rate held steady at 4.2%, and average hourly earnings rose 0.4% month-over-month, hitting a 3.9% yearly increase, which is a bit higher than expected and could signal some inflationary pressure.

• Mixed Sector Performance: Health care and hospitality led with strong gains (62,000 and 48,000 jobs, respectively), but federal government jobs dropped by 22,000, and revisions cut 95,000 jobs from March and April estimates, hinting at some softening in the market.

• Markets Surged: The Dow, S&P and NASDAQ all surged over 1% on the news with the S&P topping 6000 just after market open.

Quote of the Day:

Trump turns up the heat on Powell, wants a 1% "rocket fuel" cut in interest rates

President Trump is putting some serious heat on Federal Reserve Chair Jerome Powell to slash interest rates after the May job report returned solid numbers.

• Trump’s Push for Rate Cuts: After a solid jobs report showing 177,000 new jobs in April 2025, President Trump urged Fed Chair Jerome Powell to cut interest rates by a full percentage point, calling it “rocket fuel” for the economy, despite Powell’s cautious approach.

• Powell’s Resistance: Powell continues to maintain that the Fed’s decisions are data-driven, not politically motivated, and he’s not rushing to cut rates, because he’s concerned about potential inflation risks from Trump’s tariffs.

• Economic Implications: Trump’s pressure, paired with his claim that Powell could raise rates if inflation spikes, highlights ongoing tensions that could unsettle markets, as seen in past sell-offs when Trump criticized Powell.

Tesla shares tank 14% after Musk's spat with Trump

The very public feud between Elon Musk and Donald Trump sent Tesla’s stock into a tailspin.

• Tesla’s Stock Rollercoaster: Tesla shares tanked 14% on Thursday, wiping out $152 billion in market value after Musk and Trump traded barbs over a tax and spending bill, but they rebounded 5% in premarket trading Friday on hopes of a truce.

• Musk vs. Trump Showdown: Musk called Trump’s budget bill a “disgusting abomination,” while Trump threatened to pull government contracts from Musk’s companies, escalating tensions after Musk’s exit from leading Trump’s Department of Government Efficiency (DOGE).

• Market Jitters and Potential Truce: Analysts suggest the spat could calm down, with a reported (but unconfirmed) call between Trump and Musk to patch things up, which could stabilize Tesla’s stock and ease investor concerns.

Elon Musk looking to reconcile with Trump?

Elon Musk agreed with an X post from hedge fund CEO Bill Ackman last night saying that Musk and the president “should make peace.”

“I support @realDonaldTrump and @elonmusk and they should make peace for the benefit of our great country. We are much stronger together than apart.” Ackman wrote.

Musk replied, “You’re not wrong”

Stablecoin issuer Circle jumps 160% after its IPO

Circle, the company behind the USDC stablecoin had a blockbuster debut on the New York Stock Exchange signaling that investors are super excited about the future of stablecoins.

• Massive IPO Success: Circle’s stock skyrocketed over 160% on its NYSE debut, with shares jumping from $31 to as high as $103.75, reflecting huge investor enthusiasm for stablecoins and raising $1.1 billion in an upsized offering.

• Stablecoin Leadership: As the issuer of USDC, a stablecoin pegged 1:1 to the U.S. dollar, Circle generated $1.68 billion in revenue in 2024, though its net income dropped 41% to $155.67 million, showing strong growth but also some challenges.

• Crypto Market Optimism: The IPO’s 25x oversubscription and interest from big players like BlackRock (eyeing a 10% stake) highlight growing confidence in crypto assets and stablecoin regulations, like the bipartisan GENIUS Act, which could shape Circle’s future.

Target drops Pride merch, and leans hard into the red, white and blue

Target’s is back in the news. The retail giant’s decision to dial back its Pride Month displays and lean into patriotic merchandise instead is a big deal because it reflects how companies are navigating a tricky cultural and political landscape.

• Target Scales Back Pride Displays: Unlike previous years, Target has significantly reduced its LGBTQ-themed merchandise for Pride Month 2025, with some stores swapping out rainbow flags for USA-themed items like Stars and Stripes displays.

• Mixed Shopper Reactions: The shift has sparked a range of responses, from sarcastic complaints about the lack of Pride gear to praise for the patriotic focus, with 27% of social media backlash reportedly coming from fake accounts, amplifying the controversy.

• Corporate Strategy Shift: Following a 2023 backlash over Pride products and a recent Trump-era executive order against DEI programs, Target’s move reflects a broader trend among retailers like Walmart to adjust diversity initiatives, prioritizing less controversial patriotic themes.

Budget retailer Aldi slashes prices for summer despite tariffs

Good news for your summer grocery shopping! Budget supermarket Aldi is stepping up to help ease the sting of inflation by slashing prices on hundreds of items.

• Price Cuts on 400+ Products: Aldi is reducing prices by up to 33% on over 400 items, including meat, produce, and beverages, across its 2,400+ U.S. stores, saving shoppers an estimated $100 million this summer.

• Response to Economic Pressures: With inflation and global tariffs causing many households to tighten budgets, Aldi’s move aims to make summer gatherings more affordable, focusing on seasonal essentials like BBQ and picnic items.

• Competitive Retail Strategy: Alongside other retailers like Target, Aldi’s price reductions reflect a push to attract cost-conscious consumers in a tough economic climate, though these cuts may not signal inflation easing.