Trump-Musk Feud Heats Up

Trump-Musk Feud, Supreme Court Rulings, and Market Movers

The financial markets are abuzz today with key developments shaking stocks and crypto alike. A bitter public feud between President Donald Trump and Elon Musk has added political drama to Wall Street, while the Supreme Court ruled on high-profile data access involving the DOGE presidential advisory board. Meanwhile, earnings reports and strategic investments from tech giants and financial institutions continue to shape market sentiment.

Elon Musk and President Trump’s Intensifying Public Feud

The conflict between Tesla and SpaceX CEO Elon Musk and President Donald Trump escalated this week after Musk voiced support for Trump’s impeachment over disagreements on Trump’s sweeping “One Big Beautiful Bill Act.” This legislation targets immigration and tax reforms, which Musk criticized publicly. Trump responded by threatening to cancel Musk’s lucrative government contracts, calling Musk “a man who has lost his mind.” Despite Musk’s partial softening, Trump said he was “not particularly interested” in further dialogue, leaving the feud unresolved. This dispute has rattled investors, causing volatility in Tesla’s stock price and raising concerns about government contract stability.

Supreme Court Grants DOGE Access to Social Security Data

In a significant 6-3 decision, the Supreme Court ruled in favor of the Trump administration, allowing the DOGE presidential advisory board to access sensitive Social Security Administration data. The ruling overturned a lower court injunction and affirmed executive privilege, citing that DOGE’s operations are exempt from the Freedom of Information Act (FOIA). The dissenting justices, Kagan, Sotomayor, and Jackson, warned about risks to Americans’ privacy due to untrained staff accessing personal information. This ruling has important implications for government oversight and data privacy, especially impacting the crypto and tech sectors reliant on regulatory clarity.

Legal and Political Updates: Abrego Garcia Case and White House Press Access

Federal court proceedings against Kilmar Abrego Garcia have stirred controversy, with his attorney claiming the charges are an “abuse of power” and vowing a vigorous defense. The indictment also led to the resignation of a top federal prosecutor who cited political motivations behind the case. In a related political move, a federal appeals court upheld the Trump administration’s ability to restrict Associated Press journalists from certain White House areas based on viewpoint, citing presidential discretion over private workspaces. Critics argue this decision risks press freedom and independent journalism.

Major Tech and Finance Moves Shake Markets

Elon Musk’s AI company xAI aims for $13 billion in annual earnings by 2029, planning an $18 billion investment in new data centers to achieve a $113 billion valuation. Apple Intelligence continues to face challenges competing with AI leaders, with analysts suggesting potential acquisitions to boost its AI capabilities. Amazon Web Services announced a $5 billion investment in Taiwan to expand its cloud infrastructure amid rising AI demand. Broadcom reported $15 billion in revenue for Q2, driven by strong AI semiconductor sales. Microsoft has become the world’s largest company by market capitalization, fueled by heavy investments and partnerships with OpenAI. MongoDB posted a 22% revenue growth in Q1, raising earnings expectations for 2026.

Financial Institutions and Markets Update

Morgan Stanley is preparing a $5 billion debt sale to strengthen its funding amid uncertain market conditions. Circle Internet successfully launched its crypto IPO on the NYSE, attracting strong investor interest. JPMorgan Chase is expanding its private credit business in the Asia Pacific region despite recent market volatility. Meanwhile, Citigroup announced plans to cut 3,500 technology jobs in China as part of cost-cutting measures.

Stock Market Reactions and Consumer Sector News

Tesla’s stock recovered 5.4% in premarket trading after earlier losses linked to the Musk-Trump feud and concerns about electric vehicle demand. Lululemon slashed its 2025 earnings forecast by 21% due to tariffs and increased competition in key markets, resulting in a notable stock decline. McDonald’s announced a major hiring initiative of 375,000 workers across the U.S., signaling confidence in growth. Procter & Gamble unveiled a major restructuring plan including layoffs and brand divestitures to combat tariff impacts and slow growth. Nintendo’s upcoming Switch 2 launch has generated strong demand, with analysts predicting sales will exceed expectations.

Industrial and Energy Sector Updates

Tesla’s market capitalization has declined amid waning EV demand and political controversies surrounding Musk, though recent efforts show signs of recovery. Boeing is cautiously recovering from past quality issues and is targeting 777X certification by 2026. Automakers face new supply chain disruptions due to China’s export restrictions on rare earth minerals critical for electric vehicles. Delta Air Lines warned of operational risks due to tariffs on imported aircraft. The GOP-passed budget bill ended subsidies for solar leasing companies, potentially slowing solar market growth. Sunnova Energy filed for bankruptcy protection for its U.S. division due to high debt and declining demand.

Market Overview

Despite ongoing political tensions and economic challenges, U.S. stock markets remain resilient. Tech stocks continue to experience notable volatility, and investors await upcoming economic data and policy announcements. Senate Republicans have proposed removing fines on automakers for missing fuel efficiency standards, which could ease regulatory pressures for the industry.

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