Here's why soaring yields do matter. Annual US interest expense is currently $1.3 trillion.
For context, the largest US government outlay is Social Security. It is $1.6 trillion. Source: zerohedge
Breadth within sp500 is narrowing
Source: Barclays, RBC
Inflation is now outpacing wages in America for the first time in 3 years.
Before the US-Iran war started in late February, inflation was sitting at 2.4%. It has risen to 3.8% in just two months, driven almost entirely by the energy price shock from the war. Real average hourly wages fell 0.5% in April alone and are now down 0.3% annually. Americans are earning more dollars but buying less with them. Source: Bull Theory
Republicans surge past Democrats in Senate midterm odds projected to remain in power.
Source: Polymarket
Trump just announced "Project Freedom," a U.S.-led operation to escort trapped ships out of the Strait of Hormuz starting Monday.
- Dozens of neutral vessels from countries with no role in the conflict have been stuck in the Strait, running low on food and supplies - Trump says the U.S. will guide them safely out as a humanitarian gesture - Trump warned that any interference with the process "will have to be dealt with forcefully" - He added that U.S. representatives are having "very positive discussions" with Iran and that talks could lead to something positive for all sides Will Iran allow this or will they start firing on ships crossing and talking up their mines again?
AI CapEx is the largest area of year-over-year cash use growth, followed by research and development.
> up 42% year-over-year > accelerating from 22% Buybacks, on the other hand, are out of favor. 🧐 > Falling to just 1% year-over-year > Had been up 6% Source: Markets & Mayhem
The Pentagon just announced 15,000 service members, guided-missile destroyers, over 100 aircraft, and unmanned platforms deployed to the Strait of Hormuz. Operation begins Monday morning.
Meanwhile, a senior U.S. official then told CNN, on the record, that Project Freedom "is NOT an escort mission." The Wall Street Journal said the same. The administration is calling it a coordination framework. Governments talking to insurance companies talking to shipping firms. 15,000 troops. 100 hundred aircraft. Guided-missile destroyers. Coordination framework??? really? Source: Brian Allen
There is a manufacturing boom underway in America.
Source: Anthony Pompliano
