Hello Capitalists,

The US GDP numbers for the second Quarter were released this morning and it was a stunning report that not even Wall Street expected. Trump sets his sights on India ahead of the next Tariff deadline. The Fed decision today looks like it could be one for the record books. Kai Trump has a message for her Grandfather. There is a Ghost Fleet” keeping China afloat and Zuckerberg just announced a new type of AI.

Here’s everything you need to be following today:

• DOW: 44638.04 - (⬆️0.01) ✅

• S&P: 6381.16 - (⬆️0.16) ✅

• NASDAQ: 21178.49 - (⬆️0.38) ✅

• CBOE VIX Volatility Index: $16.04 (⬆️0.06) ⚠️⬆️

US GDP numbers for Q2 just beat expectations and it wasn't even close

The U.S. economy surged at a 3% annualized rate in the second quarter of 2025, exceeding expectations, as a sharp decline in imports and resilient consumer spending offset tariff-related uncertainties, the Commerce Department reported Wednesday.

• The growth of 3% in Q2 2025, surpassed the Dow Jones estimate of 2.3%, and rebounded from a 0.5% decline in Q1, driven by a significant drop in imports and increased consumer spending.

• Imports fell 30.3%, reversing a 37.9% surge in Q1, while consumer spending rose 1.4%, contributing to the stronger-than-expected GDP growth despite declines in exports and investment.

• Inflation showed signs of easing, with the personal consumption expenditures price index at 2.1%, near the Federal Reserve’s 2% target, and core PCE inflation at 2.5%, down from 3.5% in Q1.

• President Trump called for Federal Reserve rate cuts following the GDP report, citing low inflation, while the Fed is expected to maintain its 4.25%-4.5% rate range amid ongoing trade policy uncertainties.

Trump places 25% tariff on India for failure to reach trade deal

President Donald Trump on Tuesday announced tariffs of up to 25% on Indian imports, citing persistent trade deficits and high trade barriers, as negotiations for a long-sought U.S.-India trade agreement remain unresolved ahead of an August 1 deadline.

• The U.S. trade deficit with India has doubled over the past decade, with $87 billion in goods imported from India in 2024, fueling Trump’s criticism of the trade relationship as “very tough.”

• U.S. Trade Representative Jamieson Greer indicated more discussions are needed for a trade agreement, while India’s Commerce Minister Piyush Goyal expressed optimism about ongoing talks.

• Trump’s tariff threats align with his broader trade policy, having recently announced deals with Japan and Vietnam, while India faces additional pressure due to its ties with Russia and BRICS alignment.

Quote of the Day:

Something could happen at today’s Fed meeting that hasn’t happened since 1993

Intrigue is swirling at The Federal Reserve ahead of its July meeting, with potential dissent from two governors and political pressures from President Donald Trump promise a charged atmosphere as Chair Jerome Powell navigates economic uncertainties and tariff concerns.

• The Federal Open Market Committee is likely to maintain the federal funds rate at 4.25%-4.5%, with no major policy changes expected at the July 2025 meeting, mirroring the June outcome.

• Fed Governors Christopher Waller and Michelle Bowman may dissent, advocating for rate cuts due to controlled inflation and a weakening labor market, marking a potential first multiple-governor dissent since 1993.

• President Trump’s push for lower rates and his criticisms of Chair Jerome Powell add political tension, though Powell emphasizes data-driven decisions amid tariff-related inflation uncertainties.

• Investors will scrutinize Powell’s remarks and the FOMC statement for hints of future policy, with a September rate cut seen as likely but contingent on economic data.

“Sorry Grandpa” Kai Trump has a message for DJT in new video

Kai Trump, granddaughter of President Donald Trump, playfully apologized to her grandfather in a promotional video for her first Name, Image, and Likeness (NIL) partnership with Accelerator Active Energy.

• Kai Trump, the 18-year-old University of Miami golf commit and granddaughter of the President, secured her first NIL deal with Accelerator Active Energy, becoming an equity partner alongside athletes like Travis Kelce and Livvy Dunne.

• In the promotional video, Kai chose Accelerator’s “Rocket Pop” drink over her grandfather President Donald Trump’s favorite Diet Coke, saying, “Sorry, Grandpa.”

• The partnership was announced on July 15 at Trump International Golf Club in West Palm Beach, Florida, where Kai emphasized the drink’s benefits for her busy lifestyle as a golfer and content creator.

• Accelerator’s zero-sugar, taurine-free formula, with natural caffeine and cognitive boosters, is NSF Certified and designed to support Kai’s focus and energy on and off the golf course.

“Ghost Ships” are keeping China and Russia afloat as Tariffs tighten

A growing fleet of untracked "ghost ships" smuggling sanctioned Russian oil to Chinese ports is straining U.S.-China trade talks, as Beijing's defiance of international sanctions fuels tensions with Washington, according to U.S. officials and experts.

• China, the leading importer of Iranian oil and second-largest buyer of Russian crude, is using a fleet of unmarked "ghost ships" to transport sanctioned Russian oil, complicating U.S.-China trade negotiations.

• These ghost ships, often operating under foreign flags with disabled transponders, evade G7 price caps and EU sanctions imposed due to Russia's war in Ukraine, enabling Russia to maintain oil exports.

• U.S. Treasury Secretary Scott Bessent has highlighted China’s role in supporting sanctioned oil trades as a key issue in recent trade talks held in Sweden, underscoring ongoing diplomatic tensions.

• Experts suggest that while completely stopping oil smuggling is challenging, coordinated international efforts could increase enforcement, seize vessels, and make it harder for Russia to bypass sanctions.

Zuckerberg announces “Super-Intelligence” AI in bold strategy

Meta CEO Mark Zuckerberg announced a bold vision Wednesday to develop personal super-intelligence for all, aiming to create AI that empowers individuals setting Meta apart from competitors.

• Personal Super-intelligence Vision: Mark Zuckerberg outlined Meta’s plan to develop AI that acts as a personal super-intelligence, helping users achieve individual goals, enhance creativity, and improve personal relationships, rather than focusing solely on productivity.

• Contrast with Industry: Unlike competitors aiming to automate economically valuable work, Meta’s approach emphasizes empowering individuals through AI integrated into devices like smart glasses, which can understand and respond to users’ real-world experiences.

• Technological Progress: Zuckerberg noted that Meta’s AI systems are showing early signs of self-improvement, indicating that super-intelligence is now within reach, with the next few years being critical for shaping AI’s future.

• Resource Commitment: Meta is leveraging its strong financial position to invest heavily in AI infrastructure and talent, aiming to deliver this technology to billions while addressing emerging safety concerns.