Hello Capitalists,

Tariff Deadline Day is here, the deals are rolling in, Nvidia soars to new heights because it just made history, and the future of crypto comes to Capitol Hill.

• DOW: 44306.45- (⬇️0.15)✅

• S&P: 6242.32 - (⬆️0.28) ✅

• NASDAQ: 20530.05 - (⬆️0.55) ✅

• CBOE VIX Volatility Index: 16.70 (⬇️1.09) ⚠️⬇️

Here’s everything you need to be following today:

Trump’s Tariff deadline day arrives and the deals are rolling in

President Donald Trump announced Tuesday that his administration will reveal trade negotiation updates with at least seven countries Wednesday, signaling potential deals as part of his America First economic policy, following a new 50% tariff on imported copper.

• President Trump teased the major trade negotiation announcements to be released Wednesday morning via a Truth Social post.

• The announcement comes after Trump imposed a 50% tariff on imported copper, aiming to bolster domestic industries, and warned 14 nations to strike trade deals by August 1 or face higher tariffs.

• Trump’s tariff policy, rooted in his America First agenda, includes varying rates, with Laos and Myanmar facing the highest at 40%, while Japan, South Korea, and others could see a 25% hike if no deals are reached.

Nvidia becomes the first company in history to reach $4 Trillion dollar market cap

Nvidia Corp. became the first company to reach a $4 trillion market capitalization on Wednesday, driven by unrelenting demand for its AI chips, surpassing tech giants Apple and Microsoft in a historic milestone for the semiconductor industry.

• The company's market value surged from $1 trillion in June 2023 to over $3 trillion in just over a year, fueled by its dominance in the AI chip market. 

• Wall Street’s optimism about artificial intelligence continues to drive Nvidia’s rapid growth, positioning it as a leader in the tech sector.

• Nvidia soared on the news at market open with the share price reaching $164.14 a rise of 2.59%

America’s oldest bank partners with Ripple in $500m stablecoin deal. XRP soars on the news.

Bank of New York Mellon will serve as the primary custodian for Ripple’s U.S. dollar-pegged stablecoin, Ripple USD (RLUSD), the companies announced Wednesday, a move that bolsters regulatory compliance and institutional trust in the rapidly growing cryptocurrency sector.

• Custody Partnership: BNY Mellon, the nation’s oldest bank, has been selected as the primary custodian for $500M of Ripple’s RLUSD stablecoin reserves, managing assets to support conversions and enhance regulatory compliance. BNY holds over $43 Trillion of traditional assets and clears $2Trillion in payments and settlements per day.

• Institutional Credibility: The partnership strengthens Ripple’s position in the stablecoin market, which is seeing increased institutional interest, dubbed “stablecoin summer,” amid relaxed U.S. crypto regulations under the Trump administration.

• Ripple’s Strategic Moves: Ripple, which launched RLUSD in December 2024, has also applied for a U.S. national banking charter and a Federal Reserve master account to deepen its integration with the U.S. financial system.

• DC Moves: Ripple CEO Brad Garlinghouse will testify today at the Senate Banking committee today and you can watch it here.

• XRP Soars: Ripples digital crypto asset XRP is up by 4% to $2.40 on the news taking its monthly value appreciation to 17%. ($2.00 - $2.40)

The EU is frantic about trying to make a trade deal with the US as deadline day arrives

The European Union remains in uncertainty as talks with the United States for a trade agreement falter past a July 9 deadline, with President Donald Trump signaling a potential framework deal could still emerge this week, offering hope to avert steep tariffs on EU goods.

• The EU is expected to accept a 10% baseline tariff, significantly lower than the 50% previously proposed by Trump, with hopes to negotiate exemptions for specific sectors, while the EU has made offers to open markets for American farmers, ranchers, and fishermen.

• Despite past tensions, Trump noted improved communications with the EU, which had a $1.97 trillion trade relationship with the U.S. in 2024, marked by an EU goods surplus but a services deficit, resulting in a 50 billion euro overall trade surplus.

Trump tightens the screw on Powell as the drumbeat for his replacement gets louder

President Donald Trump is intensifying efforts to replace Federal Reserve Chair Jerome Powell, whose term ends in May 2026, by considering an early announcement of a successor to influence monetary policy, sources familiar with the matter.

• Trump’s frustration stems from Powell’s cautious approach to cutting interest rates, with the president reportedly favoring candidates who align with his economic agenda, including Treasury Secretary Scott Bessent and economist Arthur Laffer.

• The search has sparked speculation about potential candidates like Kevin Warsh and Glenn Hubbard, though no final decision has been confirmed, and Powell has not indicated plans to step down early.

Sweeping changes to how mortgage evaluations are made will now include rent payments

Fannie Mae and Freddie Mac, the government-backed mortgage giants, are making an update to how they calculate credit evaluations to help more Americans, particularly underrepresented borrowers, qualify for home loans, the Federal Housing Finance Agency announced Tuesday.

• Fannie Mae and Freddie Mac, which back about 70% of U.S. mortgages, will allow lenders to use VantageScore 4.0, a credit scoring model that includes rent and utility payments, alongside traditional FICO scores.

• The adoption of VantageScore 4.0 aims to break FICO’s near-monopoly, reduce credit report costs, and expand access to homeownership for borrowers, including Black, Latino, and immigrant communities, whose payment histories may not be fully captured by FICO.

• The change is expected to benefit approximately 5 million Americans by making it easier to qualify for mortgages, though challenges remain for some FHA borrowers due to longer closing times and strict appraisal requirements.