Hi! It’s Jack and The Stock Insider team with the best, non-partisan daily newsletter related to politics, the US stock market, and business. 😇

The Podcast:

The Markets:

Fear & Greed Index: 71/100

🟢🟢🟢🟢🔴 The market is very greedy.

Equity Indices

US benchmarks closed firmly higher, small-caps led, and global equities were mostly positive; European blue-chips slipped despite strength in Germany.

• 🟢 Small Cap 2000 — 2,113 (+18.56 | +0.89 %)

• 🟢 Dow Jones — 42,655 (+331.99 | +0.78 %)

• 🟢 S&P 500 — 5,958 (+41.45 | +0.70 %)

• 🟢 Nasdaq — 19,211 (+98.78 | +0.52 %)

• 🟢 S&P/TSX — 25,972 (+74.45 | +0.29 %)

• 🟢 MSCI World — 3,868 (+4.87 | +0.13 %)

• 🟢 DAX — 23,776 (+27.23 | +0.11 %)

• ⚪ S&P/BMV IPC — 57,987 (+27.42 | +0.05 %)

• 🟢 S&P 500 VIX — 19.41 (+2.17 | +12.59 %)

• 🔴 Bovespa — 139,187 (-147 | -0.11 %)

• 🔴 Euro Stoxx 50 — 5,390 (-37.28 | -0.69 %)

• 🔴 CAC 40 — 7,831 (-55.22 | -0.70 %)

• 🔴 FTSE 100 — 8,652 (-32.78 | -0.38 %)

Forex & Bonds

The dollar softened against major peers while Treasury yields edged lower; bitcoin retreated.

• 🟢 EUR / USD — 1.1266 (+0.0105 | +0.94 %)

• 🟢 GBP / USD — 1.3377 (+0.0100 | +0.75 %)

• 🔴 USD / JPY — 144.93 (-0.69 | -0.48 %)

• 🔴 BTC / USD — 102,395 (-1,179.60 | -1.14 %)

• 🔴 30-yr UST — 4.899 (-0.019 | -0.39 %)

• 🔴 10-yr UST — 4.441 (-0.014 | -0.31 %)

• 🔴 5-yr UST — 4.064 (-0.009 | -0.22 %)

Stocks in Focus

Tesla and Walmart paced gainers; Qualcomm and Apple were the only names fractionally lower.

• 🟢 TSLA +2.09 %

• 🟢 WMT +1.96 %

• 🟢 AMD +1.90 %

• 🟢 BRK-A +1.52 %

• 🟢 BRK-B +1.38 %

• 🟢 GOOGL +1.36 %

• 🟢 CMG +0.54 %

• 🟢 KO +0.54 %

• 🟢 NVDA +0.42 %

• 🟢 MCO +0.32 %

• 🟢 MSFT +0.25 %

• 🟢 DEO +0.23 %

• 🟢 AMZN +0.20 %

• ⚪ JPM +0.03 %

• ⚪ QCOM -0.07 %

• ⚪ AAPL -0.09 %

Interesting Stocks to Look at:

Most Interesting Events Today:

Macro data (10 a.m. ET)

• Quarterly Retail E-commerce Sales (Q1 2025) — fresh spending detail for online merchants, parcel carriers, cloud usage, and warehouse REITs. Even a ±0.5 pp surprise could shift sector beta.

• Conference Board Leading Economic Index — April — another drop would add to slowdown chatter and feed into rate-cut odds across euro-dollar strips.

Federal Reserve speakers

• 8 : 30 a.m. — Raphael Bostic welcomes delegates to the Atlanta Fed Financial Markets Conference.

• 8 : 45 a.m. — Vice-Chair Philip N. Jefferson interviewed by Bostic (keynote). Balance-sheet hints here travel fastest through futures.

• 8 : 45 a.m. — John Williams delivers the opening economic outlook at the Mortgage Bankers Association Secondary & Capital Markets conference. Watch mortgage-rate commentary.

• 12 : 15 p.m. — Lorie Logan moderates an FMC panel on Treasury-market plumbing; liquidity remarks can tug at front-end yields.

• 1 : 30 p.m. — Neel Kashkari sits for a Q&A at the U.S. Chamber Global Summit; he often opines on policy-path probabilities.

Treasury cash-management

• 11 : 30 a.m. — 13- and 26-week bill auctions (~$108 bn total). Cover ratios and indirect-bid share feed directly into reserve-balance maths and SOFR expectations.

Index mechanics

• Coinbase (COIN) enters the S&P 500 at today’s open, replacing Discover Financial Services. Passive trackers (~$5.7 tn AUM) may need to shift about $8 bn. Expect heavy open-auction volume and ETF-basket imbalances.

Credit-quality headline

• Moody’s downgrades the U.S. sovereign rating to Aa1 this morning, citing widening deficits. Watch the long bond and dollar cross-rates for knock-ons.

Corporate earnings & events

• 8 a.m. — Niu Technologies (NIU) results: micro-EV demand read-through for battery plays (exchange calendars).

• Pre-open — Global Ship Lease (GSL): container-rate gauge for shipping ETFs.

• 8 p.m. — Trip.com Group (ADR TCOM) Q1 call: travel-demand pulse for airlines, hotels, OTAs.

• Phillips 66 sent another proxy-fight letter ahead of its 21 May AGM; any daytime vote-count leaks could jar energy spreads.

Policy & regulation

• 10 a.m. — USTR hearing on maritime-equipment tariffs; today is also the final day for written comments.

• SEC comment windows close on several exchange-fee filings.

• FINRA’s extended comment deadline on IPO-allocation reforms still expires today despite a June extension proposal.

Judicial calendar

• 9 : 30 a.m. — Supreme Court releases its order list. Trade or immigration cert-grants can ripple through specific equities or sectors.

What matters for traders

• 10 a.m. macro prints → rates and growth-vs-value positioning

• 11 : 30 a.m. bill supply → front-end funding levels and repo spreads

• Opening cross → COIN/DFS rebalance flows

• All-day → five Fed microphones and a new Moody’s sovereign rating set the tone for risk appetite

Sources

• U.S. Census Bureau – Quarterly Retail E-commerce Sales

• Conference Board – U.S. Leading Economic Index press release

• Atlanta Fed – Financial Markets Conference 2025 agenda

• Treasury – Tentative Auction Schedule (PDF)

• PR Newswire – Coinbase Global Set to Join S&P 500

• The Guardian – Moody’s downgrades U.S. credit rating

• PR Newswire – Trip.com Group Q1 2025 earnings announcement

• Business Wire – Phillips 66 letter to shareholders

• Federal Register – Section 301 maritime-equipment tariff docket

• SEC – National Securities Exchanges comment page

• FINRA – Requests for Comments portal

• Supreme Court of the U.S. – “Today at the Court” page

Most Impactful News Summaries:

USAID cuts reshape Middle East power, raise stability questions

The Trump administration's cuts to humanitarian aid, while maintaining military assistance, are reshaping the Middle East's power dynamics, particularly in Egypt and Jordan. This shift is prompting questions about regional stability.

The US is significantly reducing foreign aid to Egypt and Jordan, major recipients of US funding, while simultaneously moving USAID's regional bureau to Cairo. This decision has raised concerns about the impact on essential services and refugee support.

With the US scaling back humanitarian aid, the EU is stepping in with financial assistance, while China and Russia are increasing their influence. This evolving landscape presents both challenges and opportunities for the region.

Source: https://www.euronews.com/2025/05/19/shifting-sands-who-can-the-middle-east-turn-to-after-usaid-funding-cuts

Manufacturers struggle to replace synthetic food dyes

The Trump administration's initiative to eliminate synthetic food dyes faces challenges, as manufacturers may struggle and costs could rise. This is part of the "Make America Healthy Again" effort.

Manufacturers are finding it difficult to replace synthetic dyes with natural alternatives, as the process can be complex and expensive. The FDA is approving new natural dyes, but sourcing and stability issues remain.

The shift to natural dyes is driven by consumer demand and government regulations. Some manufacturers, like a pickled pepper maker, have already made the switch, but others face greater hurdles.

Source: https://www.npr.org/sections/shots-health-news/2025/05/19/nx-s1-5401042/food-dye-synthetic-natural-trump-fda-maha

Microsoft seeks AI profits at Seattle developer conference

Microsoft's annual developer conference in Seattle focuses on turning its substantial AI investments into profitable products and services.

The company, a major investor in OpenAI, has already spent $64 billion this year on AI infrastructure, including data centers for services like Copilot. Microsoft is also reevaluating its relationship with OpenAI and aiming to become a neutral AI provider.

Demand for Microsoft's Azure cloud AI services is growing, and the company is optimizing costs by keeping revenue-generating services in its own data centers.

Source: https://www.reuters.com/business/microsoft-hosts-developer-conference-focus-grows-ai-profits-2025-05-19/

Missile shield may cost US hundreds of billions

President Trump's proposed "Golden Dome" missile shield could cost hundreds of billions of dollars, according to estimates, potentially straining the defense budget.

The Pentagon has presented the White House with various development options for the space-based missile defense system, with a decision expected soon. The project will require significant funding and involve private contractors like SpaceX.

The system aims to protect the US from long-range missile threats, but faces technological and cost challenges. Initial funding of $25 billion has been allocated, but the total cost could exceed $500 billion.

Source: https://www.cnn.com/2025/05/19/politics/golden-dome-missile-shield-price-billions

US seeks influence over Greek ports

The United States, under the Trump administration, is focused on reducing Chinese influence in Greece, particularly regarding control of its ports. This strategy is spearheaded by US Ambassador to Greece, Kimberly Guilfoyle.

The US aims to gain influence over Greek ports like Thessaloniki and Alexandroupoli, viewing Chinese ownership of Piraeus with suspicion. India's interest in Alexandroupoli, as part of the India-Middle East-Europe Corridor, aligns with US goals.

Greece has already shown willingness to align with US interests, rejecting Chinese requests for its warships. France and Italy are also vying for influence in the region, potentially partnering with Greece or India.

Source: https://www.ekathimerini.com/economy/1270027/us-has-its-eye-on-greek-ports/

InoBat makes military drone battery in Slovakia

Slovak startup InoBat is launching a new battery specifically designed for military drones, responding to increased European defense spending.

The E10 cell, set for production in September, aims to offer superior performance, including faster charging, greater payload capacity, and longer flight times compared to existing batteries. InoBat is collaborating with European drone manufacturers.

This move follows a shift in focus from electric vehicles and reflects a broader trend of companies retooling for military production amid rising defense demands. InoBat has raised significant funding, including a recent 100 million euro investment.

Source: https://www.reuters.com/technology/slovak-startup-inobat-launches-battery-military-drones-2025-05-19/

Hollywood studios increasingly use AI voice technology

Hollywood is rapidly expanding its use of AI-generated voice technology, according to Respeecher CEO Alex Serdiuk, impacting the entire production cycle.

Serdiuk revealed at the Cannes Film Festival that studios are increasingly employing Respeecher's voice cloning services, citing examples like "Obi-Wan Kenobi" and "The Mandalorian." Disney is a pioneer, but other major studios are now using the technology extensively.

The shift reflects a move towards large-scale integration of AI voice, with discussions focusing on responsible implementation, including consent, credit, and compensation for talent.

Source: https://deadline.com/2025/05/respeecher-ai-voice-technology-hollywood-cannes-alex-serdiuk-1236403128/

China respects Denmark's Greenland sovereignty, seeks cooperation

China's Foreign Minister affirmed China's respect for Denmark's sovereignty over Greenland during a meeting in Beijing. This statement comes amid strained relations following a visit by a former Taiwanese president to Copenhagen.

Wang Yi's statement was made to Denmark's Foreign Minister, Lars Lokke Rasmussen, and included a hope for Denmark's continued support of China's stance on its own sovereignty. The meeting also touched on shared goals of multilateralism and free trade.

The meeting occurred after China strongly condemned a visit by former Taiwan President Tsai Ing-wen to Copenhagen. China is seeking to strengthen dialogue and cooperation with the European Union.

Source: https://www.reuters.com/world/china/china-fully-respects-denmarks-sovereignty-greenland-foreign-minister-says-2025-05-19/

Nvidia's Lepton platform sells AI computing power

Nvidia launched a new software platform, Lepton, to create a marketplace for cloud-based AI computing power, aiming to streamline access to its in-demand GPUs.

The platform will allow cloud computing companies, including CoreWeave and Nebius Group, to sell their Nvidia GPU capacity in a centralized location, simplifying the process for developers seeking AI chip resources. Major cloud providers like Microsoft and Amazon are not yet listed but could join.

Lepton will eventually enable developers to search for chips in specific locations and allow companies to easily rent additional Nvidia chips. Nvidia has not yet revealed its business model for the platform.

Source: https://www.reuters.com/business/media-telecom/nvidia-software-aims-create-marketplace-ai-computing-power-2025-05-19/

NVIDIA advances humanoid robot development with new platforms

NVIDIA unveiled new platforms and tools, including Isaac GR00T N1.5, to accelerate the development of humanoid robots, aiming to advance physical AI. This update promises improved robot capabilities.

The announcement includes GR00T-Dreams, a blueprint for generating synthetic motion data, and NVIDIA Blackwell systems to boost robot development. Companies like Boston Dynamics and Foxconn are adopting NVIDIA's Isaac platform.

These advancements aim to address data and testing gaps in robotics, with new simulation technologies and universal Blackwell systems. The goal is to provide comprehensive tools for every stage of robot development.

Source: https://nvidianews.nvidia.com/news/nvidia-powers-humanoid-robot-industry-with-cloud-to-robot-computing-platforms-for-physical-ai

AI demands drive enterprises toward supercomputing infrastructure

Enterprises are increasingly adopting supercomputing infrastructure to meet the growing compute and energy demands of large-scale AI initiatives. This shift is driven by the need for massive processing power.

The trend is evident in the adoption of high-density configurations and scale-up architectures, mirroring traditional supercomputing. Companies are exploring one-gigawatt data centers, and sectors like quant trading are using supercomputers for cost-effective AI workloads.

While the search for a "killer app" and high initial infrastructure costs remain challenges, the adoption of AI is driving interest in HPC systems globally. HPE offers solutions to support diverse enterprise needs, including flexible software strategies.

Source: https://www.computerweekly.com/news/366624056/AIs-thirst-for-power-pushing-enterprises-into-supercomputing

Smartex reduces textile waste using AI technology

Smartex, a sustainable fashion startup, has developed technology to detect textile flaws, preventing one million kilograms of fabric waste. The company is backed by H&M and Amazon.

Smartex uses AI and cameras to identify defects during production, increasing fabric efficiency by 0.37%. The company's technology aims to address the fashion industry's significant waste problem, where a truckload of clothes is discarded every second.

The startup has raised over $40 million and is part of Amazon's AWS Compute for Climate Fellowship. Smartex aims to create an "operating system" for fashion factories, allowing brands to track production details.

Source: https://www.cnbc.com/2025/05/19/meet-the-sustainable-fashion-startup-backed-by-hm-and-amazon.html

Northwest farmers struggle with low prices, trade war

Farmers in the Pacific Northwest face economic hardship due to low wheat prices and the potential impact of a new trade war under the Trump administration. Many fear the policies could bankrupt them.

Wheat farmers, heavily reliant on exports, are struggling with high inflation and the rising costs of farming equipment, compounded by uncertainty surrounding trade agreements. They are concerned about the long-term damage to established international markets.

Despite continued support for Trump in the region, farmers express worry about the disconnect between the White House and their needs, as well as the potential for lasting negative consequences from trade policies.

Source: https://www.npr.org/2025/05/19/nx-s1-5388501/low-prices-and-trumps-trade-war-are-pushing-these-northwest-farmers-to-the-brink

U.S. tariffs still hurt China trade

U.S. tariffs on Chinese goods remain high despite a recent trade truce, with the effective rate at nearly 32%, significantly impacting trade.

The U.S. suspended a 34% reciprocal tariff and cancelled retaliatory levies, but existing tariffs and new measures like a national security probe on semiconductors keep rates elevated. Companies like VTech are already planning to move production out of China.

While markets initially reacted positively, the underlying trade situation is still challenging, with little progress in U.S. trade discussions and companies preparing for long-term shifts away from China.

Source: https://www.reuters.com/breakingviews/post-truce-state-us-china-trade-looks-dire-2025-05-19/

Gates commits $200B for global progress by 2045

Bill Gates announced a $200 billion commitment through his foundation to improve global health, education, and poverty reduction by 2045. The foundation will close after the funds are distributed.

Gates' plan focuses on reducing maternal and child deaths, eradicating diseases, and enabling millions to escape poverty, particularly in Africa. He believes technology and AI will accelerate progress, despite government cuts in foreign aid.

Gates remains optimistic despite global challenges, citing progress in child mortality rates and urging other billionaires to increase philanthropic efforts. He sees opportunities for breakthroughs to improve lives.

Source: https://www.ndtv.com/world-news/bill-gates-bets-on-a-better-world-by-2045-pledges-200-billion-in-aid-8449601

Nvidia may invest in quantum computing firm PsiQuantum

Nvidia is reportedly in advanced discussions to invest in quantum computing startup PsiQuantum, according to a report from The Information.

The report, which Reuters could not independently verify, indicates a potential investment in PsiQuantum, a company previously valued at $6 billion. Nvidia and PsiQuantum have both declined to comment on the report.

Quantum computing could revolutionize complex calculations, potentially impacting fields like cybersecurity and artificial intelligence, which currently rely on Nvidia's chips.

Source: https://www.reuters.com/business/nvidia-advanced-talks-invest-psiquantum-information-reports-2025-05-19/

China's April industrial output, retail sales growth slowed

China's industrial output growth slowed to 6.1% in April, a decrease from March's 7.7%, indicating a potential economic slowdown.

Retail sales also decelerated, rising 5.1% in April, down from 5.9% the previous month, and missing economists' expectations of 5.5% growth. Fixed asset investment growth also slightly missed forecasts.

These figures, released by the National Bureau of Statistics, suggest a cooling of economic activity despite surpassing some analysts' expectations for industrial output.

Source: https://www.reuters.com/world/china/china-april-industrial-output-retail-sales-growth-slow-2025-05-19/