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Trump strikes trade deal with China, is the trade war over?

JD Vance hits Jerome Powell on interest rates and Musk publicly apologies, Trump responds...

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Good News Capitalists,

The US and China finally have a trade deal, VP Vance steps into the ring with Jerome Powell, Musk apologized for popping off on X (and Trump just responded), Nvidia’s CEO thinks our Quantum computer future could be imminent, Zuckerberg just dropped $14 billion on Meta’s future, Tesla’s Robotaxi’s will start in 11 days, inflation is down and Warner Brothers just got scorched.

Let’s break it down for you:

  • The Top Line Market Numbers:

  • DOW: 43013.36 (⬆️0.34) 

  • S&P: 6042.04 (⬆️0.05)

  • NASDAQ: 19708.85 (⬇️0.03)🔴

The US and China have a tentative trade deal

President Donald Trump announced a major breakthrough deal with China that could mean the end of an ongoing trade war and worldwide market uncertainty.

  • Trade Truce Reached: After intense negotiations in London, the US and China have agreed on a framework to dial back punitive tariffs—down from 145% to 55% on the US side and from 125% to 10% on China’s—building on a temporary truce from May in Geneva.

  • Rare Earths and Magnets Secured: The deal ensures China will supply critical rare earth minerals and magnets upfront, vital for electronics and electric vehicles, while the US will ease export controls on goods like semiconductor software and aircraft.

  • Pending Final Approval: Trump says the deal is “done” but needs final sign-off from him and Chinese President Xi Jinping, with a deadline of August 10 to finalize a broader agreement or risk tariffs snapping back to triple-digit levels.

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JD Vance just laid into Jerome Powell over Interest rates

Vice President JD Vance has joined the scrum between President Donald Trump and Fed Chair Jerome Powell by throwing punches at the Federal Reserve over its refusal to lower interest rates.

  • Trump and Vance Tag-Team the Fed: Both leaders are publicly criticizing Powell, with Vance calling the Fed’s refusal to cut interest rates “monetary malpractice” after a recent inflation report showed only a 0.1% monthly increase, suggesting tariffs haven’t spiked prices yet.

  • Inflation Data Fuels the Fire: The Bureau of Labor Statistics reported annual inflation at 2.4% (all items) and 2.8% (core, excluding food and energy), above the Fed’s 2% target, but Trump and Vance argue this supports their push for lower rates to boost the economy.

  • Fed Stays Cautious Amid Tariff Concerns: The Fed, which last cut rates in December, is holding steady at 4.25%-4.5% due to worries about long-term inflation from Trump’s tariff policies, with markets seeing no chance of a cut at the next meeting.

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Quote of the Day:

“Criticism is easier to take when you realize that the only people who aren’t criticized are those who don’t take risks.”

-Donald Trump

Is the feud finished?: Musk apologizes publicly for attacks and Trump gives his response

Things can get heated on social media and the recent online clash between Elon Musk and Donald Trump made headlines, but it appears that things have calmed down.

  • Musk’s Regret: Elon Musk apologized on X for some of his social media posts about President Donald Trump, admitting they “went too far” after a heated feud sparked by Musk’s criticism of Trump’s “One Big Beautiful Bill Act” tax and spending bill.

  • Trump’s Response: President Trump told the press, “I thought it was very nice that he did that” in response to Musk’s post.

  • Feud Fallout: The public spat saw Trump threaten to cut government contracts with Musk’s companies like Tesla and SpaceX, while Musk made bold claims, including tying Trump to Jeffrey Epstein and briefly threatening to decommission SpaceX’s Dragon spacecraft, before backtracking.

  • Business and Political Impact: The feud disrupted their once-tight partnership, where Musk led the Department of Government Efficiency (DOGE), raising concerns about the future of Musk’s businesses and their government ties.

Elon Musk says that Robotaxis will start in Austin in just 11 days

Elon Musk just dropped a bombshell that Tesla’s robotaxi service is gearing up to hit the streets of Austin, Texas, and it’s happening soon.

  • Tentative Launch Date: Tesla plans to start offering robotaxi rides in Austin on June 22, with the first driverless trip from the factory to a customer’s house set for June 28, Musk’s birthday.

  • Small-Scale Start: The service will kick off with about 10 to 20 Model Y vehicles using Tesla’s new “unsupervised” Full Self-Driving tech, operating in a geofenced area with remote monitoring for safety.

  • Safety and Expansion: Musk emphasized a cautious approach, prioritizing safety, with plans to scale up to thousands of robotaxis and expand to cities like Los Angeles and San Francisco if the Austin pilot succeeds.

Zuckerberg spends billions to chase Meta’s AI future

Mark Zuckerberg is doubling down on AI in a massive way, as Meta seeks to evolve. He’s wants to catch up to AI leaders like OpenAI and the $14 billion deal with Scale AI shows Zuck’s not messing around.

  • Huge Investment in Scale AI: Meta’s dropping $14 billion to grab a major stake in Scale AI, a hot startup that preps data for training AI models, aiming to supercharge Meta’s AI tech.

  • Bringing in Top Talent: Scale AI’s CEO, Alexandr Wang, is joining Meta to lead its AI push, bringing his know-how from working with big names like OpenAI and Microsoft.

  • Zuckerberg’s AI Frustration: Zuck’s fed up with Meta lagging in AI, especially after the lukewarm response to their Llama 4 models, so he’s betting big to make Meta a top AI player.

Nvidia CEO hints that a quantum computing future may be a lot nearer than we realize

Nvidia’s CEO Jensen Huang just dropped some exciting insights about quantum computing, and it’s worth paying attention to because Huang’s shift to a more optimistic view signals that quantum computing might be closer to making a real impact than we thought, and that’s huge for industries like medicine, cybersecurity, and pretty much everything in our daily lives.

  • Quantum Computing’s Big Moment: Huang announced at Nvidia’s GTC Paris conference that quantum computing is hitting an “inflection point,” meaning it’s on the verge of solving real-world problems in the next few years, a much more bullish stance than his earlier 20-year timeline prediction.

  • What is Quantum Computing?: Quantum computers use "quantum bits" or "qubits" that can be ON, OFF, or both at the same time (thanks to weird quantum physics). It's like having a coin that's spinning in the air - it's both heads and tails until it lands. This lets quantum computers explore many possible solutions to a problem simultaneously, instead of trying them one by one. For certain types of problems, this could make them exponentially faster than regular computers.

  • Nvidia’s Hybrid Approach: Huang highlighted Nvidia’s Cuda Q, a hybrid quantum-classical computing solution, and praised Europe’s growing quantum community, including a recent meeting with French startup Pasqal, showing Nvidia’s deep investment in this space.

  • Market Impact and Hype: Huang’s earlier skepticism tanked quantum stocks like Rigetti and IonQ, but his newfound enthusiasm, alongside breakthroughs like Google’s Willow chip for error correction, is fueling excitement and optimism in the quantum computing industry.

Inflation numbers for May are out and its good news.

Everyone knows that inflation is a big deal and the latest numbers are out. The Consumer Price Index (CPI) report for May 2025 gives us a snapshot of where prices are at.

  • Inflation stayed tame in May: The CPI rose just 0.1% month-over-month, less than the expected 0.2%, keeping the annual inflation rate at 2.4%. Core CPI (excluding food and energy) also increased by 0.1%, with a yearly rate of 2.8%, both lower than forecasts.

  • Energy and key goods helped keep prices down: A 1% drop in energy prices, including a 2.6% decline in gasoline, offset rises in shelter and food (both up 0.3%). Items like vehicles and apparel, expected to spike due to tariffs, actually saw price drops.

  • Tariffs might still stir things up: While May’s data didn’t show a big tariff impact, economists warn that price increases could hit later as inventories dwindle, potentially pushing inflation higher in the coming months.

The market absolutely hated Warner Brothers announcement yesterday and just said so, loudly

Warner Bros. Discovery announced yesterday that they would be splitting in to separate companies and the market reaction has been brutal. Then this morning they got crucified by the ratings agency Moody’s.

  • Moody’s Downgrades Bonds to Junk Status: Moody’s Ratings slashed the debt rating of Warner Bros. Discovery’s units to junk, citing ongoing operational struggles and a shift to include secured debt, which complicates things for bondholders as the company plans to split into two entities by mid-2026.

  • Split Plan Sparks Bondholder Concerns: Warner Bros. is set to divide its Global Networks (like CNN and TNT) and Studios & Streaming (think HBO and Warner Bros. films) into separate companies, backed by a $17.5 billion secured bridge loan to refinance $14 billion in unsecured notes, putting existing bondholders at a disadvantage.

  • Tough Choices for Investors: The restructuring means bondholders face tricky decisions—selling back notes could mean losing protections on other bonds, and new secured debt prioritizes new creditors, potentially leaving unsecured noteholders with less recovery if things go south.