📈 Elon’s Done with Politics

Stocks slip as tariff and credit worries rattle markets, Tesla defies the tech slump, and Moody’s downgrade threatens to keep mortgage rates elevated. Meanwhile, Google’s Gemini gains ground in the AI race as Wall Street reassesses its potential.

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Journals GG
May 21, 2025

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Good Morning & Happy Wednesday!

Stocks slip as tariff and credit worries resurfaced and rattled markets, Tesla defies the tech slump, and Moody’s downgrade threatens to keep mortgage rates elevated. Meanwhile, Google’s Gemini gains ground in the AI race as Wall Street reassesses its potential.

Grab your Iced Latte and let’s get into it. 👇️ 

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Markets

📉 Stock Market Drops
Wall Street hit the brakes as US stock futures dipped, Dow slipped 0.5%, S&P 500 dropped 0.6%, and Nasdaq shed 0.7%. Despite some progress on trade talks, Trump’s tariffs are still casting a long shadow, triggering renewed fears for the economy. After a six-day rally, reality set in, with strategists calling recent market optimism "unwarranted."

Meanwhile, the US dollar hit a two-week low, adding fuel to investor anxiety as G-7 talks stir speculation about Washington's stance on currency and deficits.

🏘️ What America's Latest Credit Downgrade Means For Mortgage Rates
Moody’s downgrade of U.S. credit has pushed 10-year Treasury yields higher, and that’s bad news for anyone hoping for cheaper mortgages. With yields rising, 30-year fixed mortgage rates could now hover around 7%, a tough blow for homebuyers already priced out of the market. While Wall Street shrugged it off, the bond market didn’t. Investors are growing wary of America’s long-term fiscal health.

🤫 Googles Secret Advantage in the AI Arms Race
Google’s Gemini is quietly gaining ground in the AI race, outpacing rivals like ChatGPT and Meta AI in user growth between September and March, according to Morgan Stanley. Gemini’s strength lies in its commercial edge, from product research to price comparisons, it's becoming a go-to for shoppers. With Google I/O underway, expect that spotlight to only intensify.

🤔 Is It Too Late to Invest in the S&P 500's 3 Hottest Stocks This Year?
Fears of a bear market are cooling off, the S&P 500 has quietly shifted into rally mode, now up 1% on the year after weeks of steady gains. Leading the charge? NRG Energy, Palantir, and Uber. The big question now: Are these stocks still a buy, or have they flown too close to the sun?

🔋 Tesla Stock Gains as Elon Musk Vows to Bet Less on Politics
Tesla stock broke away from the Big Tech slump Tuesday, rising as Elon Musk told the world he’s stepping back from politics to focus on business. “I’ve done enough,” Musk said of his massive political spending, reportedly around $300 million, signaling a pause on funding Trump’s 2024 campaign.

He’s also locking in on Tesla’s future, pushing for 25% voting control and confirming plans to stay CEO, unless, as he joked, he dies. Meanwhile, the Cybercab launch is still on track for June.

Quick Links

💰️ $4 trillion deficit bomb
💹 Invest in recession-resilient Mobile Home Parks with Vintage Capital. *
⚡️ Elon Musk says AI could run into power capacity issues by middle of next year.
🧠 Google’s AI Mode rolls out to US, will add support for deeper research, comparison shopping, and more.
🪙 Stablecoin bill could pave the way for a multi-year crypto bull market.
🇨🇳 US and China trade truce becomes fragile as the war of words continues.
💻️ Elon Musk says Tesla, xAI expect to keep buying chips from Nvidia and AMD.
🕴️ Google launches $250 per month ‘VIP’ AI subscription service.

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