Hello Capitalists,

Markets trundle onwards and upwards as Trump puts another major trade deal on the scoreboard and fears of Trade War Armageddon recede.

Here’s everything you need to be following today:

• DOW: 44873.45 - (⬆️0.83) ✅

• S&P: 6336.09 - (⬆️0.42) ✅

• NASDAQ: 20920 - (⬆️0.14) ✅

• CBOE VIX Volatility Index: 15.57 (⬇️0.93) ⚠️⬇️

Trump signs huge trade deal with Japan

President Donald Trump announced a sweeping trade agreement with Japan on Tuesday, imposing tariffs on Japanese exports to the U.S. while securing billions in investment from Japan, a deal he hailed as "perhaps the largest ever made" during a White House press conference.

• Trade Deal Announcement: President Trump revealed a major trade agreement with Japan, setting "reciprocal" tariffs at 15% on Japanese exports to the U.S., a reduction from the previously threatened 25% tariffs.

• Investment and Economic Impact: Japan committed to investing $550 billion in the U.S., with Trump claiming the U.S. would receive 90% of the profits, and the deal is expected to create hundreds of thousands of jobs.

• Market Access: The agreement opens Japan's market to U.S. goods, including cars, trucks, rice, and other agricultural products, enhancing trade opportunities for American producers.

• Context of Negotiations: The deal follows Trump's earlier tariff threats in a letter to Japan, with negotiations culminating in a joint press conference with Japanese Prime Minister Shigeru Ishiba on February 7, 2025, at the White House.

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Goldman Sachs and BNY Mellon go all in on crypto for money market funds

Goldman Sachs and Bank of New York Mellon have partnered to launch tokenized money market funds, allowing institutional investors to purchase digital tokens recorded on Goldman’s blockchain platform.

• Tokenized Money Market Funds: Goldman Sachs and BNY Mellon have introduced a system for institutional investors to buy tokenized money market funds, with ownership recorded on Goldman’s blockchain platform, marking a significant step in integrating blockchain into traditional finance.

• Major Industry Players Involved: The initiative has attracted major asset managers like BlackRock, Fidelity Investments, Federated Hermes, and the asset management arms of Goldman and BNY, signaling broad industry support.

• Enhanced Capabilities: Tokenization enables faster settlement, round-the-clock trading, and the potential for funds to be transferred between financial intermediaries without liquidation, improving efficiency and utility as collateral.

• Market Context and Impact: The $7.1 trillion money market industry is poised for transformation following the recent U.S. GENIUS Act, with tokenized funds offering yield and liquidity, attracting hedge funds, pensions, and corporations.

• Causing Ripples: BNY Mellon recently signed a partnership with Ripple to be the custodian of their XRP linked stablecoin RLUSD.

Reddit’s meme stocks are back as “Wallstreetbets” pumps GoPro and Krispy Kreme

Retail traders on Reddit’s WallStreetBets forum drove a meme-stock frenzy Wednesday, sending shares of GoPro soaring and Krispy Kreme jumping in premarket trading, as speculative fervor shifted from former darling Opendoor, which fell 9%.

• Retail traders on Reddit’s WallStreetBets targeted GoPro and Krispy Kreme, pushing their shares up 63% and 33% respectively in premarket trading, while Opendoor’s stock dropped 9% after a speculative run.

• GoPro, a penny stock trading below $1, and Krispy Kreme, priced around $4 with 28% of its float shares shorted, were heavily discussed on social media, echoing the 2021 GameStop mania.

• The meme-stock surge coincided with a broader market rally, with the S&P 500 hitting a record high and 2025 gains exceeding 7%, fueled by optimism over tariff relief and expected Federal Reserve rate cuts.

• Posts like “YOLO DNUT” on WallStreetBets highlighted the high-risk trading strategy, with GoPro and Krispy Kreme joining other heavily shorted stocks like Beyond Meat and 1-800-Flowers in the speculative wave.

Google kicks off Big Tech’s earning season with all eyes on the “AI Trade”

Alphabet, Google's parent company, kicks off Big Tech's earnings season today, with investors closely watching for signs of artificial intelligence-driven growth as the “AI trade” takes center stage in the stock market.

• Big Tech earnings season begins with Alphabet reporting after the bell, spotlighting the growing influence of artificial intelligence (AI) on market performance.

• Investors are focused on how companies like Alphabet leverage AI to drive revenue, with expectations high for AI-related advancements and their impact on stock valuations.

• The AI trade has fueled significant market interest, with companies investing heavily in AI technologies to stay competitive, as seen in recent moves by Meta and others.

• Market analysts anticipate volatility as not all AI stocks may deliver expected gains, prompting calls for selective investment strategies to mitigate risks.

Investment in America is surging after Trump’s Big Beautiful Bill signing

President Donald Trump’s One Big Beautiful Bill Act, signed into law on July 4, is fueling a surge in business investments across the U.S., with provisions allowing immediate expensing of capital expenditures driving what the administration calls a “capex comeback,” officials said Wednesday.

• One Big Beautiful Bill Act (OBBBA): Signed into law by President Trump on July 4, 2025, the bill includes provisions for full expensing of business capital expenditures, retroactive to January, spurring a “capex comeback” as businesses ramp up investments.

• Economic Impact: The Trump administration credits the bill with encouraging significant capital investments, with Treasury officials noting increased productivity and wage growth, exemplified by investments in industries like steel and AI in Pittsburgh.

• Policy Synergy: The bill’s tax policies work in tandem with Trump’s tariffs, aiming to attract foreign capital and boost domestic production, further enhancing economic growth and job creation.

• Fiscal Optimism: Administration officials, including Treasury Secretary Scott Bessent, argue the bill’s pro-growth measures will lead to higher revenues and fiscal sustainability, countering concerns about deficit increases.

Revealed: Microsoft hack hit nuclear security agency

The U.S. National Nuclear Security Administration, responsible for designing and maintaining the nation’s nuclear arsenal, was breached in a hack targeting Microsoft’s SharePoint software, though no sensitive or classified information was compromised, a source familiar with the matter said Tuesday.

• The National Nuclear Security Administration (NNSA), a semi-autonomous arm of the U.S. Energy Department, was breached due to a vulnerability in Microsoft’s SharePoint document management software.

• No sensitive or classified information is known to have been compromised in the attack, which began exploiting a zero-day vulnerability on July 18.

• Microsoft attributed the hack to Chinese state-sponsored hackers who targeted governments and businesses worldwide, stealing credentials like usernames and passwords in some cases.

• The U.S. Energy Department, Cybersecurity and Infrastructure Security Agency, and Microsoft did not immediately respond to requests for comment, and the breach’s full scope remains under investigation.