Weekend Update #230
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The S&P 500 fell for a fourth straight session, extending its decline after snapping a six-day winning streak on Tuesday, as investor concerns deepened over the U.S. fiscal outlook. Sentiment soured after the House narrowly passed President Donald Trump’s multi-trillion dollar tax bill (215-214) on Thursday—a package aimed at averting year-end tax hikes but at the cost of further expanding the federal deficit. The move followed a recent downgrade by Moody’s, intensifying scrutiny of U.S. debt sustainability.
Treasuries sold off further, with weak demand for a 20-year bond auction pushing yields above 5%, highlighting investor unease around holding long-term U.S. debt. The 30-year yield rose toward 5.14%, nearing financial-crisis-era levels, while the 10-year edged up to 4.61%. Strategists warned that “bond vigilantes are back,” signaling a revival of market discipline over fiscal policy.
The Bloomberg Dollar Index slid to its lowest since 2023 as traders grew increasingly bearish on the greenback amid rising recession risks.
Volatility spiked further Friday morning after President Trump threatened a 25% tariff on Apple if it fails to bring iPhone production to the U.S.—a warning he later broadened to all foreign-made smartphones, including those from Samsung. Just 30 minutes later, Trump escalated tensions with Europe, threatening a 50% tariff on EU goods starting June 1, citing failed negotiations and accusing Brussels of unfair treatment toward U.S. companies. “Our discussions with them are going nowhere,” he said, adding he’s “not looking for a deal.”
Meanwhile, a wave of retail earnings this week highlighted growing pressure on consumer spending. Ross Stores withdrew its full-year profit forecast, citing the unpredictable impact of volatile trade policies on the economy, consumer behavior, and profitability. Shares of Ugg-maker Deckers plunged over 20% after the company issued disappointing guidance and scrapped its full-year outlook due to a lack of visibility. Target also cut its sales forecast following a weaker-than-expected quarter, reflecting continued strain on household budgets.
Amid the broader risk-off environment, Bitcoin surged to a record high of $111,980, driven by rising institutional demand, supportive signals from the White House and Congress, and investor rotation into alternative assets like gold and crypto as concerns over tariffs and deficits mount.
Friday’s Close (Weekly Performance)
S&P 500 5,802.82 (-2.61%)
Nasdaq 18,737.21 (-2.47%)
Dow Jones 41,603.07 (-2.47%)
Thank you Senior Analyst NICK PEART.
FDA Commission Marty Makary Supportive of Psychedelic Compounds for Research and Development of New Therapeutics for Hard To Treat Mental Illnesses, including PTSD and Severe Depression
Jilllian Michaels The world’s biggest celebrities are claiming psychedelics changed their lives as well as President Trump’s pick for Surgeon General. Dr. Casey Means says it helped her find love. Now whether that be Ibogaine, magic mushrooms, ayahuasca. Research suggests that these plant medicines can help treat addiction, traumatic brain injury, PTSD and more. Yet they remain illegal. Joining me today is the head of the FDA, Dr. Makary to weigh in. Doc, happy Friday. Thanks for joining me.
Jillian Michaels
First off, we’ve got to talk about Dr. Means. Now, she’s a personal friend, so I recuse myself from commenting here, but I’m going to ask you, as an extremely accomplished doctor yourself: why the controversy, and do you think she’s a good pick?
Marty Makary
Well, she’s a force of nature, and she is making a very sort of broad critique of what is wrong with our system. And that she is calling out our health care system as a sickness system. And she is educating millions of people about health, something that she has described has been missing in medical education and our payment system in the way that the elites think about our health care system.
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