#Issue 16 - Bezos vs. Musk: The Billionaire Battle Intensifies!

What’s in this issue;

In this issue, we take you on a ride through the latest market developments that have investors buzzing with excitement. The S&P 500 soared to a record high, fueled by a a potential resolution to the Israel-Iran conflict that sent oil prices plummeting, relieving inflation anxieties.

At the same time, the long-awaited U.S.-China trade agreement has finally materialised, promising reduced tariffs and an expedited flow of rare earth exports. These shifts are injecting fresh optimism into the markets, as investors look for the next big wave to catch.

Beyond market numbers, the geopolitical chessboard is in full play as Jeff Bezos’ Blue Origin leverages political rifts to challenge Elon Musk’s SpaceX for government contracts, especially in the lucrative space and defense sectors.

Meanwhile, Nvidia makes headlines with its DGX Cloud Lepton launch, potentially reshaping the AI infrastructure landscape and challenging tech titans like AWS and Google Cloud.

As we look forward, all eyes are on upcoming economic indicators from the U.S., Japan, and China, alongside key earnings reports and U.S. Senate deliberations that could set the tone for investment trends going forward. This issue is your gateway to understanding the powerful forces and strategic decisions driving today's dynamic market environment.

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What is Moving the Markets

Markets just wrapped up its most impressive week since mid-May, with the S&P 500 not only posting a fresh intraday peak but also closing at a record high for the first time since February.

The Nasdaq Composite followed suit, achieving milestones not seen since last December. This surge was fueled by a dramatic shift in global sentiment: the conclusion of a tense 12-day conflict between Israel and Iran sent oil prices tumbling, easing inflation concerns and giving investors a reason to cheer.

The final push came as the U.S. and China finalised a trade agreement that promises to lower tariffs and expedite rare earth exports—two developments that had traders buzzing with optimism.

The week’s economic headlines added more intrigue. While the third estimate of U.S. Q1 GDP growth was revised downward, a slightly hotter core personal consumption expenditures reading kept inflation in the spotlight.

Meanwhile, Federal Reserve Chair Jerome Powell’s testimony to Congress struck a cautious tone, sticking to a wait-and-see approach and steering clear of any promises about imminent rate cuts.

On the corporate front, Micron Technology impressed with strong earnings, while Nike reassured investors by outlining plans to pivot supply chains away from China despite warning of $1 billion in extra tariff costs.

By week’s end, the S&P 500 was up 3.4%, the Nasdaq soared 4.3%, and the Dow added 3.8%—a powerful rally that has investors watching closely for what’s next.

Bezos vs. Musk: Blue Origin Seeks Advantage 
Jeff Bezos and Blue Origin are leveraging the recent rift between Donald Trump and Elon Musk to lobby for more government contracts, especially in space and defense, positioning Blue Origin as an alternative to SpaceX.

US Targets Chip Plants in China: The US is preparing to tighten restrictions on chip plants in China owned by allies like South Korea and Taiwan, potentially revoking waivers that allow these firms to use American technology there. This could escalate trade tensions and impact the global semiconductor supply chain.

Nvidia Launches DGX Cloud Lepton:
Nvidia unveiled DGX Cloud Lepton, a new cloud-based GPU marketplace, aiming to further dominate AI infrastructure. The platform could reach $10 billion in annual revenue and intensifies competition with AWS, Azure, and Google Cloud.

Top Economic News

Federal Reserve Holds Rates Steady: The Fed kept its key interest rate at 4.25%–4.50% for the fourth consecutive meeting, citing persistent economic uncertainty and inflation risks. Policymakers signaled a cautious approach, with most expecting no rate cut until at least September.

Fed Signals Fewer Rate Cuts in 2025: Updated projections show the Fed now anticipates only two rate cuts this year, down from earlier expectations, reflecting concerns about tariffs, slower growth, and inflationary pressures.

Tariffs and Trade Policy Add Uncertainty: Ongoing tariff measures from the Trump administration continue to cloud the economic outlook, with risks of higher inflation and slower growth influencing Fed policy and market sentiment.

Looking Forward: What We Anticipate Next Week

Next week, markets will be focused on the Senate’s vote on President Trump’s “One Big Beautiful Act,” the June U.S. nonfarm payrolls report, remarks from Fed Chair Powell, and Tesla’s Q2 delivery numbers.

The week is relatively light for earnings, but several key global economic indicators are also on the calendar.

Monday, June 30: Progress Software reports earnings.

Tuesday, July 1: Fed Chair Jerome Powell speaks at the ECB forum in Portugal; earnings from Constellation Brands, MSC Industrial Direct, and The Greenbrier Companies; Japan’s Tankan Index and China’s Caixin Manufacturing PMI released.

Wednesday, July 2: Tesla announces Q2 vehicle deliveries, with analysts expecting a 10–18% year-over-year decline to 366,000–400,000 units, reflecting ongoing demand and competition challenges. UniFirst Corporation reports earnings; U.S. ISM Manufacturing PMI and JOLTs job openings data released.

Thursday, July 3: U.S. Bureau of Labor Statistics releases the June nonfarm payrolls report, a key input for Fed policy; Australia and Canada release trade balance data.

Friday, July 4: U.S. markets closed for Independence Day.

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