SpaceX, Tesla, and your portfolio are in the blast zone
Dear Friend,
Circle just pulled off a 170% IPO and crypto said, “We’re so back.”
Too bad Bitcoin didn’t get the memo—it’s down anyway, thanks to Trump beefing with Elon and trade talks going poof.
Meanwhile, Tesla’s in a tailspin, Wall Street might be too bearish on the dollar for its own good, and Congress is writing trillion-dollar IOUs like it’s Black Friday.
Gold’s getting fancy, Kymera’s got a pill giving Dupixent a run for its billions, and retail?
Let’s just say luxury’s thriving and the middle is getting squeezed harder than a lemon in a LaCroix can.
Keep reading this edition of the Insider Report for all the juicy market mayhem..
Jeremy Blossom
Editor in Chief, Everlasting Wealth
MARKETS
MARKET HEADLINES
📉 Bitcoin dips despite Circle’s blockbuster IPO, as crypto prices mirror stock market jitters tied to stalled U.S.-China trade talks and Trump’s feud with Elon Musk.
🪙 Circle’s IPO skyrockets nearly 170% on day one, marking a comeback moment for crypto markets as investors bet on stablecoin growth and regulatory momentum.
🤖 Nvidia edges up after Broadcom’s strong earnings reaffirm robust AI demand, even as high expectations weigh on broader semiconductor stock movements.
💵 Wall Street’s overly bearish consensus on the dollar could backfire, with positive economic surprises or Trump’s trade-driven fiscal policy potentially triggering a painful reversal.
📉 SEC under Trump-era leadership faces criticism for ignoring the explosive growth of opaque private markets, as IPOs dwindle and capital increasingly flows outside regulatory oversight.
🚗 Tesla stock nosedives 14% amid a high-profile spat between Musk and Trump, regulatory threats to EV incentives, poor German sales, and renewed safety concerns.
🛢️ Oil prices remain surprisingly firm despite oversupply fears, with potential Iran sanctions acting as a geopolitical wildcard that could drive prices higher.
📉 MicroStrategy’s new preferred stock struggles to attract investors due to its junior status and non-cumulative dividends, despite being backed by billions in Bitcoin assets.
💊 Kymera stock soars 50% after early trial results for its STAT6-blocking pill suggest it could rival blockbuster Dupixent in treating autoimmune conditions like dermatitis and asthma.
🛍️ Retail earnings reveal widespread uncertainty as tariffs and cautious consumers cloud forecasts, with premium and discount brands outperforming the squeezed middle.
The Big Beautiful Bill: Trillions in Tax Cuts, Deficits, and a Little Gold Glitter
Well, the “Big Beautiful Bill” is out, and surprise surprise—it’s basically a $4 trillion IOU wrapped in red, white, and blue.
Washington wants to slash taxes by $3.7 trillion over the next decade (yay!), but forgets to mention we’ll rack up a neat little $2.4 trillion increase in the deficit while doing it (oops).
The Congressional Budget Office is waving red flags like it’s a Fourth of July parade, warning we might just crash into fiscal reality if we don’t pair these cuts with actual spending reductions.
They say they’ll trim about $1.3 trillion from places like Medicaid and Social Security—because who needs retirement or healthcare anyway when you’ve got vibes and free-market magic?
Meanwhile, gold’s getting a promotion to Tier 1 asset status, which means all the smart money is grabbing it like toilet paper in 2020.
And if they extend those tax breaks past 2026, 62% of taxpayers get to dodge a nasty hike—assuming we haven’t been eaten alive by inflation and debt by then.
Bottom line: we get some sweet tax relief now, but the grandkids will be footing the bill while Congress pats itself on the back. God bless America, and pass the calculator.
STOCKS 2 WATCH
↘️ Tesla: The EV giant’s shares dipped nearly 4% in premarket activity. This followed a sharp drop the previous day—its steepest decline since 2020—after tensions intensified between CEO Elon Musk and former President Trump.
↘️ Lululemon Athletica: Shares of the athleisure company plunged 21% before the market opened. The brand slashed its full-year earnings forecast, citing the financial strain from tariff risks due to its reliance on Southeast Asian manufacturing.
↘️ Broadcom: Although the chip and software manufacturer slightly exceeded analysts’ expectations on both revenue and adjusted profit, its shares dropped close to 4% in early trading.
↗️ Circle: The newly public stablecoin issuer soared 13% in premarket hours, adding to Thursday’s post-IPO rally.
↘️ DocuSign: The digital signature firm saw its shares tumble roughly 18% before the bell after it revised its billings outlook downward and reported revenue that came in below Wall Street estimates.
Fact of the Week
Before electricity lit up Wall Street, the NYSE relied entirely on natural light to conduct trades. Built in 1903, its iconic trading floor featured a massive skylight dome and 96-foot ceilings—not for grandeur, but so traders could actually see. If clouds rolled in or it got too dark, trading would slow down… or even stop.
ECONOMY
Trump-Musk Blow Up Adds Fuel to Market Volatility and Economic Uncertainty
The very public fallout between Donald Trump and Elon Musk isn’t just a tabloid feud—it’s sending shockwaves through the economy at a delicate time.
Tesla’s $150 billion stock drop and Trump Media’s $170 million paper loss are just the start; this spat has turned into a live grenade lobbed right into the heart of fiscal policy.
As Musk torches Trump’s $2.4 trillion tax plan and threatens to pull SpaceX support from NASA, Republicans now find themselves cornered between their most popular figure and their most powerful financial backer.
All this unfolds as global tariff talks hang in the balance, bond markets twitch over federal deficits, and a fragile post-inflation recovery tries to hold.
The drama might read like a Twitter cage match, but it’s punching real holes in economic stability—and the longer it drags on, the more the markets will feel the squeeze.
ECONOMIC HEADLINES
🤝 Trump’s feud with Elon Musk stole headlines and erased $150 billion from Tesla’s value, but the bigger market driver remains his stalled trade talks with China, which offer little clarity for investors.
🪙 Circle’s stunning 170% IPO debut signals crypto’s comeback as the stablecoin issuer eyes growth and regulation to close the gap with Tether.
🧵 Lululemon beat earnings expectations but slashed its annual forecast, citing tariffs and cautious consumer spending that weakened key North American sales.
🏠 Housing inventory has hit pre-pandemic levels with longer listing times and widespread price cuts, especially in southern and western metro areas, creating better conditions for buyers.
💰 Trump’s tax-and-spending bill delivers sweeping cuts for the wealthy but closes key loopholes for high-earning service professionals and corporate donors, tightening deductions for the top tier.
💊 Big Pharma is increasingly licensing advanced cancer drugs from Chinese firms despite the trade war, raising innovation hopes and political risks as $25 billion in deals bypass U.S. biotech.
🌍 Global stocks are outpacing U.S. equities, pushing advisors to urge international diversification as valuations cool and Trump’s tariff risks cloud future returns.
💱 The U.S. Treasury warns it may label China a currency manipulator over its opaque intervention practices, signaling a tougher stance on exchange-rate policies under Trump.
🚀 Despite Trump’s threats, SpaceX remains too essential to cut off, securing billions in contracts as its market and technological dominance shields it from political blowback.
📉 Markets cheered the Trump-Xi call hoping for tariff relief, but lingering distrust, unresolved AI and rare-earth disputes, and student visa tensions kept optimism in check.
Trivia
Which index primarily tracks the performance of small-cap U.S. companies?
A. S&P 500
B. Dow Jones Industrial Average
C. Nasdaq-100
D. Russell 2000
E. Wilshire 5000
Scroll for the answer
BUSINESS
Car Companies Scramble as China Tightens Grip on Rare-Earth Magnets
Automakers are in full-blown damage control as China tightens export controls on rare-earth magnets—those tiny, critical parts that keep electric vehicles (and even windshield wipers) running.
With inventories dwindling and export licenses crawling in, carmakers are weighing drastic workarounds, including the irony of shipping motors to China just to get magnets installed—sidestepping rules meant to encourage U.S. manufacturing.
Some assembly lines in Europe have already gone dark, and Ford even halted Explorer production for a week.
The big fear? Plants across the globe could start shutting down in a matter of weeks.
While Washington and Beijing volley blame over who’s breaking trade deals, companies are desperately hunting alternative suppliers or reverting to older, less efficient motor tech.
Some are even considering cutting fancy features like adjustable seats or premium speakers just to stretch magnet supply.
It’s a costly mess for manufacturers—and a reminder that despite all the rhetoric about reshoring, America’s still hooked on China’s rare-earth dominance.
Answer
Which index primarily tracks the performance of small-cap U.S. companies?
D. Russell 2000
The Russell 2000 Index measures the performance of approximately 2,000 small-cap U.S. companies and serves as a benchmark for this segment of the market.
Unlike the S&P 500, which focuses on large-cap stocks, the Russell 2000 provides insights into the health of smaller, domestically focused businesses.
Investors and analysts often monitor it to gauge risk appetite and economic resilience in the small-cap space, especially during economic expansions or contractions.
