Tech has had quite the month so far... and we're not even halfway done
Source: Trend Spider
Reddit Stock Surges 12%, Set to Join S&P 500 Index This Month
Reddit will join the S&P 500 Index before the US market opens on August 18, driving a 12.45% surge in extended trading. While inclusion enhances market visibility and potential passive fund demand, the traditional "index effect" has moderated. Reddit faces core challenges, including slowing US user growth and search referral volatility driven by AI-powered search changes. Despite a robust second-quarter revenue report, the stock remains down about 31.9% year-to-date as investors weigh long-term traffic sustainability against its growing valuation and strategic positioning alongside Meta Platforms in the social media sector. Source: TradingKey, Trend Spider
In the month of July, the US Government collected $334 Billion. Just one problem…
They spent $766 Billion. A $432 BILLION deficit. In one month. Source: Geiger Capital
Uranium hits highest price since February
Source: Barchart
Bessent’s selling of EUR to buy JPY, and US threats to weaponize USD stablecoins against the EU may be triggering some unforeseen blowback.
Source: FT, Luke Gromen
President Trump just now: “The U.S.A. has total control over the Strait of Hormuz,” and Iran’s IRGC is “decimated and fleeing.”
Source: Bull Theory
US inflation continued to cool in July, broadly in line with expectations.
US CPI confirms disinflation is continuing, not accelerating. Headline CPI: 0.1% MoM, in line with 0.1% consensus Core CPI: 0.2% MoM, in line with expectations Headline CPI: 3.4% YoY, unchanged Core CPI: 2.5% YoY, down from 2.6%. Lowest since March 2021. Real average hourly earnings: +0.2% YoY Energy fell 1.5% in July, and gasoline dropped 2.9%. Core goods inflation remained contained at 0.2% YoY. There is no inflationary case for a rate hike. At least at this stage. The absence of an upside inflation surprise was enough to reassure markets, with US equity futures moving higher following the release. On the less positive side: 1/ Inflation is still above target 2/ Further relief might be difficult to achieve if war in Iran keeps going Source. Daniel Lacalle
No rare earths = no fighter jets = no modern war machine.
The U.S. remains heavily dependent on China for critical rare-earth materials, with roughly 70% of rare-earth imports coming from China. And Beijing has increasingly demonstrated its willingness to restrict exports of strategic minerals. The vulnerability goes far beyond fighter jets. Rare earths and related critical minerals are essential for missiles, radar systems, drones, satellites, precision-guided weapons, submarines and advanced electronics. If inventories are already tight, a prolonged disruption in Chinese supply could become a serious bottleneck for U.S. defense production. That creates a striking strategic paradox: America's military-industrial base still depends, in part, on supply chains dominated by its biggest geopolitical rival. China doesn't necessarily need to fire a shot to exert pressure. Sometimes the most powerful weapon is controlling what your opponent needs to keep fighting. Sun Tzu would understand the strategy. Source: Lukas Ekwueme
