Bad News = Good Stocks?

Market Sizzle: S&P 500 Record Highs, Nvidia Chip Smuggling Exposé, $91 Trillion Debt Disaster and Chinese Export Fears ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more [Bad News = Good Stocks?]( Market Sizzle: S&P 500 Record Highs, Nvidia Chip Smuggling Exposé, $91 Trillion Debt Disaster and Chinese Export Fears [Josh Belanger](joshbelanger) Jul 3 joshbelanger   [READ IN APP](   The S&P 500 lit up the sky with all-time highs to kick off the fireworks! Tomorrow is Independence Day—yes, the Fourth of July, even though the real Declaration of Independence was signed on July 2, 1776. Markets will be closed tomorrow, and today had a shortened session, wrapping up at 1 PM EST. Friday's session will be back to normal, but expect it to be slow as everyone enjoys a long summer weekend. Stocks Surge, Fed Cuts Soon? The U.S. economy is showing signs of slowing down, and investors are happy about it! Usually, bad economic news would make stock prices fall. But right now, it's making them go up. Why? Because it means the Federal Reserve (the big bank that controls interest rates) might lower interest rates soon. Lower interest rates make it easier for companies to borrow money, which can help them grow and make more profits. Some recent reports showed that the U.S. job market is cooling down and that services businesses are shrinking. This is usually bad news, but investors see it as a good sign that the Fed will lower rates. This led to a big jump in stock prices, with the S&P 500 reaching an all-time high. Of course, there are still some risks, like political uncertainty and the ongoing fight against inflation. But for now, investors seem to be focused on the possibility of lower rates, which could be a big boost for the stock market. Governments Drowning in Debt The world faces a $91 trillion debt problem, nearly as large as the global economy. Governments owe so much due to pandemic costs, and this debt threatens living standards everywhere, including the US. Politicians avoid talking about the tough choices needed, like raising taxes or cutting spending. The International Monetary Fund urges the US to fix its budget issues. Investors are worried too, as rising debt leads to higher borrowing costs for everyone. Fixing this will be hard, but ignoring it could cause a financial crisis. Nvidia Chip Smuggling Sneaky sellers in China are secretly getting powerful computer chips from a company called Nvidia. The U.S. banned these chips because they can be used to make super-smart computers. The chips are sneaking in with the help of secret helpers. One helper was a college student who hid six chips in his suitcase when he flew home from Singapore. He got paid for each chip he brought in, but it wasn't much compared to what they're worth on the secret market. Lots of people are selling these chips online, and they can even get you whole computers full of them! Even though it's against the rules, these chips are still being bought and sold because they are so important for making smart computers. Christmas Shipping Crisis Chinese exporters are worried about Christmas delays. Rising freight costs and Red Sea attacks by Yemen's Houthi group have caused big problems. At Golden Arts Gifts & Decor, manager Richard Chan says it's the worst year in over two decades. They’re just trying to survive. Most products go to the US and Europe. Clients want orders shipped a month early to avoid delays. Freight rates jumped over 110% in two months. Some manufacturers are working weekends and borrowing money. US tariff fears add more stress. This could lead to higher prices and delays in the West. Quick Sizzles - Powell's Cautious Optimism on Inflation Cools Rate Cut Hopes: Fed Chair hints at progress but emphasizes patience before lowering interest rates. - BlackRock's Climate Split: Green Funds to Go Rogue: The asset management giant will allow climate-focused funds to take a more activist stance on environmental issues. - Wall Street's Deal Frenzy Fizzles Amidst Election Jitters: Corporate fundraising surges in the first half of 2024, but bankers brace for a slowdown as uncertainty looms. - Boeing Faces Felony Fraud Plea or Trial in Jet Blowout Case: The aerospace giant faces a tough choice in the wake of a mid-air scare and a breached agreement with the Department of Justice. - Moderna Scores $176 Million for Bird Flu Vaccine Trial: As the outbreak spreads among farm animals, the US government is investing in a new mRNA-based vaccine. - Amazon's Global Profit Turnaround: A Logistics Triumph: The e-commerce giant's international arm is on track for its first annual profit in years, thanks to streamlined operations. - Eurozone Inflation Cools, but ECB Remains Cautious: A slowdown in price increases offers some relief, but sticky services inflation could delay further rate cuts. - FTC Throws a Wrench in Tempur Sealy's Mattress Firm Takeover: A proposed $4 billion bedding deal hits a snag as regulators cry foul over competition concerns. That’s today’s Market Sizzle! You're currently a free subscriber to [Josh Belanger](. For the full experience, [upgrade your subscription.]( [Upgrade to paid](   [Like]( [Comment]( [Restack](   © 2024 Josh Belanger 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()