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Good morning! Right here is the newest in trending:
Publish-earnings: Tesla (TSLA) fell 4% after warning about “near-term uncertainty,” however talked AI upside, robotaxi progress, and Optimus 3 as a surgeon.
Newest fairness stakes: The Trump administration is claimed to be negotiating with quantum computing companies in trade for federal funding.
Above $60: WTI crude futures (CL1:COM) jumped following contemporary U.S. sanctions towards Russia’s high oil corporations and their subsidiaries.
$38,000,000,000,000…
That is loads of zeros and crimson ink to fret about. The gross federal debt of the USA has simply topped the $38T stage, solely two months after surpassing $37T. For these conserving tabs, that is the quickest charge of including $1T exterior of a pandemic, with gloomy fiscal milestones now being added at twice the tempo seen since 2000, in keeping with the Peterson Basis.
Quote: “Three successive downgrades of the U.S. credit standing ought to alarm elected leaders, however our nationwide debt stays on an unsustainable trajectory,” mentioned CEO Michael Peterson of the Washington-based group, which promotes deficit discount. “The USA now finds itself with credit score scores beneath its former AAA friends (reminiscent of Australia, Denmark, and Germany) and as a substitute finds itself amongst nations like Austria, New Zealand, and France. Nevertheless, even amongst these nations, the USA remains to be a fiscal outlier, provided that it has roughly 119% of gross debt to GDP and an annual deficit of greater than 7%.”
The daunting numbers come regardless of efforts like DOGE, in addition to a normal lack of concern to rein in spending. Nobody needs to the touch well-liked entitlement applications like Medicare, Medicaid and Social Safety, or restrict protection expenditures to extra applicable ranges. Laws just like the “One Large Lovely Invoice” has additionally exacerbated the issue, whereas rate of interest funds have now develop into the third-largest month-to-month outlay for the federal authorities. It is no shock that secure havens like gold have been on a rip this 12 months (regardless of Tuesday’s massive drop), together with a major weakening of the greenback, and any rise in authorities bond yields can damage financial development if ranges stay elevated.
Go deeper: Considerations surrounding the mounting debt downside arrive as the federal government stays closed in a shutdown that simply grew to become the second-longest on report. A lot of that combat has to do with sorts of fiscal spending, together with whether or not to increase enhanced tax credit beneath the Inexpensive Care Act, however the expenditures have been uncontrolled irrespective of which celebration is in energy. In addition to new types of income, the federal government should implement actual reforms or enact spending caps to generate structural financial savings, which would require dedication and a broad consensus from each side of the aisle. (13 feedback)
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What else is occurring…
Subsequent up: Will Intel’s (INTC) current offers and turnaround technique repay?
Reddit (RDDT) sues Perplexity for allegedly scraping knowledge for AI coaching.
Worth nonetheless being explored in Paramount Skydance’s (PSKY) bid for WBD.
Amazon (AMZN) goals for sooner supply with new robots and AR glasses.
Federal Reserve mentioned to lose entry to ADP non-public employment knowledge.
Southwest’s (LUV) cost-cutting and bag fees drive shock revenue.
Beefing over beef: Trump says cattle ranchers do not perceive tariffs.
Alphabet (GOOGL) chip achieves ‘first-ever verifiable quantum benefit.’
DraftKings (DKNG), FanDuel (FLUT) to tackle Kalshi and Polymarket.
Return of the meme rally? Past Meat (BYND) skyrockets, then plunges.
SEC Chair Atkins continues to look out for ‘hanky-panky’ within the markets.
At present’s Markets
In Asia, Japan -1.4%. Hong Kong +0.7%. China +0.2%. India +0.2%.
In Europe, at noon, London +0.6%. Paris +0.4%. Frankfurt -0.3%.
Futures at 6:30, Dow -0.1%. S&P +0.1%. Nasdaq +0.1%. Crude +5.7% to $61.82. Gold +1.7% to $4,132.40. Bitcoin +1.4% to $109,516.
Ten-year Treasury Yield +4 bps to three.99%.
On The Calendar
Firms reporting at this time embrace Intel (INTC) and Ford (F).
See the complete earnings calendar on Looking for Alpha, in addition to at this time’s financial calendar.
