Current state of affairs 🍿Markets situation yesterday summarized in one image courtesy of Trend Spider.
Tesla was a big laggard in the session, down more than 14%, after President Donald Trump said he was “very disappointed” in CEO Elon Musk. Musk shot back at President Donald Trump, saying in a post on X that “without me, Trump would have lost the election.” The feud further intensified after Trump called Musk ”‘CRAZY” and signaled that he might cut his companies’ government contracts.
U.S. treasury just bought back $10 billion of its own debt, the largest buyback ever
Source: Department of the Treasury
The Trump-Elon meltdown: the breakup between the world’s most powerful politician and the world’s richest man is playing out in a manner befitting an era of hyperreality:
With stunning speed, wild recriminations, and in public via television and their own social media platforms. Tesla shares plunged 14%, comp lost $153bn in mkt cap, now worth less than $1tn. Source: HolgerZ, Bloomberg
Coming soon...
Source: Jonas DM. @dm_jns on X
BREAKING: WHITE HOUSE SCHEDULES FRIDAY CALL FOR ELON AND TRUMP
Trump and Elon are signaling a more measured tone after their recent debate over the “Big Beautiful Bill,” Trump’s signature legislative package. ➡️ In an interview with POLITICO, Trump projected calm, saying, “It’s going very well, never done better,” and emphasizing his strong poll numbers. White House aides encouraged the president to focus on the bill’s passage and avoid escalating any disagreements. A call is scheduled between Trump and Elon to discuss their views further. Hedge fund manager @BillAckman urged both men to work together for the country’s benefit, a sentiment Elon echoed on X. Source: POLITICO
ECB lowered interest rates for the 8th time in a year after inflation dipped <2% and the economy suffered repeated blows from US tariffs.
ECB cut the deposit rate by 25bps to 2% and reiterated that it’s not pre-committing to a particular path. ECB balance sheet shrank to €6.3tn. Note that ECB deposit rate has fallen below the German inflation rate for the first time since September 2023. Source: HolgerZ, Bloomberg
Gold’s 2025 Surge: Defying the Commodity Downturn
Divergence Began in November 2023 By May 2025, gold prices had surged 25.0% year-to-date, in sharp contrast to the broader commodity market slump. The overall commodity index fell 9.0%, with energy prices down 12.9% and food prices down 5.9%. Gold's value stood 153% above its pre-pandemic level—outpacing the commodity index by 117%, energy by 138%, and food by 109%. Source: Econonovis on X
Elon Musk: "Flatten the curve"
Source: Future timeline
