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- ⭐️ White House expects stablecoin bill to unlock trillions – May 22, 2025
⭐️ White House expects stablecoin bill to unlock trillions – May 22, 2025
Investors are favoring emerging markets over U.S
Jack Roshi
May 22, 2025
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: 66/100
🟢🟢🟢🟢🔴 The market is greedy.
Major World Market Indices
Global equities are broadly lower this session, led by a ~2 % slide in U.S. benchmarks and similar losses across Europe; Mexico’s IPC is the lone gainer, while a jump in the VIX underscores the risk-off tone.
🔴 Dow Jones 41,860 (-816.80 | -1.91 %)
🔴 S&P 500 5,844.61 (-95.85 | -1.61 %)
🔴 Nasdaq 18,872.64 (-270.07 | -1.41 %)
🔴 Small Cap 2000 2,046.56 (-59.02 | -2.80 %)
🟢 S&P 500 VIX 21.59 (+0.71 | +3.40 %)
🟢 S&P/BMV IPC (Mexico) 58,568.01 (+256.86 | +0.44 %)
🔴 S&P/TSX (Canada) 25,839.17 (-216.46 | -0.83 %)
🔴 Bovespa (Brazil) 137,881 (-2,228 | -1.59 %)
🔴 MSCI World 3,818.22 (-11.60 | -0.30 %)
🔴 DAX 23,856.76 (-260.93 | -1.08 %)
🔴 FTSE 100 8,695.47 (-90.99 | -1.04 %)
🔴 CAC 40 7,812.27 (-98.22 | -1.24 %)
🔴 Euro Stoxx 50 5,387.25 (-67.21 | -1.23 %)
Forex & Bonds
The dollar is mixed, but higher U.S. yields (10-year near 4.60 %) add pressure to risk assets as the Treasury curve shifts upward again.
🔴 EUR/USD 1.1313 (-0.0015 | -0.14 %)
🔴 USD/JPY 143.31 (-0.35 | -0.25 %)
🟢 GBP/USD 1.3425 (+0.0006 | +0.04 %)
🔴 BTC/USD 110,847.90 (-951.90 | -0.85 %)
🟢 US 5-Year Yield 4.157 (+0.09 | +2.21 %)
🟢 US 10-Year Yield 4.596 (+0.115 | +2.57 %)
🟢 US 30-Year Yield 5.09 (+0.123 | +2.48 %)
Notable Stock Movers
Tech leadership fractures as Google bucks the sell-off, while chip names and consumer discretionary lag; speculative favourites CRWV and XPEV surge on volume.
🟢 CRWV +19.00 %
🟢 XPEV +13.00 %
🟢 GOOG +2.87 %
🟢 GOOGL +2.79 %
🔴 LUMN -4.51 %
🔴 NKE -4.12 %
🔴 TSLA -2.68 %
🔴 AAPL -2.31 %
🔴 NVDA -1.92 %
🔴 JPM -1.75 %
🔴 AMZN -1.45 %
🔴 AMD -1.28 %
🔴 MSFT -1.22 %
🔴 T -1.12 %
🔴 ADI -1.01 %
Interesting Stocks to Look at:
Most Interesting Events Today:
A crowded Thursday features fresh labor-market data, housing figures, a regional manufacturing pulse check, a TIPS reopening, a high-profile Fed speech from Reykjavík, and more than 70 earnings reports—including Intuit, Autodesk, Ross Stores, and Analog Devices—plus multiple shareholder meetings and Fastenal’s 2-for-1 split. Any surprise in these items might sway rate-cut odds, real-yield curves, and sector momentum.
Macro data releases
Initial jobless claims (08:30 ET) – Street expects ~230 k. A print outside the 220–240 k band might recalibrate June rate-cut probabilities and payroll models.
Existing-home sales, April (10:00 ET) – March showed a 5.9 % slide. Traders will focus on median price and inventory shifts for clues on mortgage-rate drag and home-builder sentiment.
Kansas City Fed manufacturing index (11:00 ET) – Likely to stay negative; even a mild uptick can ripple through regional-bank books and TIPS breakevens.
Federal Reserve diary
Governor Adriana Kugler (06:45 ET) speaks on “Maximum Employment” in Reykjavík. Labour-slack language might tilt bets for the July FOMC.
New York Fed workshop (all day) on balance-sheet runoff bridges staff research and market desks; any comments on neutral reserves could hit term-premia models.
Treasury supply
10-Year TIPS reopening ($18 bn, 13:00 ET) plus 4- and 8-week bills. Added real-rate supply into month-end duration adjustments might nudge breakevens.
Washington watch
House tax-and-spending bill heads to Senate after a 215-214 overnight vote. Budget hawks are already gaming deficit paths and debt-ceiling deadlines.
Earnings to monitor
Before the open
Analog Devices surprised with a revenue beat; its outlook guides chip-sector positioning. (reuters.com)
Pre-market roster also includes TD Bank, Ralph Lauren, Lightspeed, CSW Industrials, and others.
After the close
Intuit (call 16:30 ET) – TurboTax season color on consumer strength.
Ross Stores (call 16:15 ET) – Off-price traffic vs. big-box softness.
Autodesk (call 17:00 ET) – Guidance bar amid AI-capex build-outs.
Home Depot virtual AGM (09:00 ET) focuses on labor practices and capital allocation.
Lincoln National virtual AGM (09:00 ET) revisits reserve-charge fallout.
Cheesecake Factory AGM (10:00 PT) covers wage inflation and unit growth.
Fastenal begins trading on a split-adjusted basis at the open; retail flow might spike liquidity.
Sources
Most Impactful News Summaries:
Google integrates Gemini AI into Volvo cars
Google and Volvo are expanding their partnership to integrate Google's Gemini AI into Volvo vehicles, aiming to accelerate automotive innovation. This will bring the latest Android features to Volvo drivers.
The collaboration will make Volvo a reference hardware platform for future Android development, with Gemini replacing Google Assistant in Volvo cars later this year. This will allow for natural conversations and reduce driver distraction.
Volvo, aiming for full electrification by 2040, will see its models, like the EX90, benefit from the partnership. The integration is expected to set new industry benchmarks for connected car experiences.
UK borrowing exceeds expectations, pressuring Chancellor Reeves
UK borrowing surged to £20.2 billion in April, exceeding expectations and intensifying pressure on Chancellor Rachel Reeves to manage the nation's finances. This rise complicates efforts to fund public services and stimulate economic growth.
The April borrowing figure is £1 billion higher than the previous year and the fourth-highest on record for that month. This occurred despite increased employment taxes implemented by Reeves, as public spending outpaced revenue growth due to rising service costs and benefits.
The Chancellor faces scrutiny ahead of the upcoming spending review, with calls for wealth taxes to avoid welfare cuts. The government also revised down its borrowing estimate for the previous financial year, highlighting ongoing fiscal challenges.
Source: https://www.theguardian.com/business/2025/may/22/uk-government-borrowing-april-rachel-reeves
Multi-agent systems boost startup efficiency and automation
The availability of multi-agent systems is revolutionizing how startups operate, offering a significant advantage over traditional single-agent AI. These systems enable collaborative AI, streamlining workflows and adapting to changing conditions.
Multi-agent systems, now accessible through platforms like AWS and Google's new tools, feature networks of independent agents. They divide tasks, optimize processes, and handle unexpected scenarios more effectively than single-agent models, leading to greater efficiency.
Startups can leverage these systems for research, sales, and data extraction, automating tasks and reducing manual workloads. However, challenges like transparency and data validation require careful implementation and a collaborative approach.
German office loans plummeted, deepening real estate crisis
Office building loan volume in Germany plummeted 26% in the first quarter, signaling a deepening crisis in the nation's real estate sector.
The VDP banking association reported loans for offices totaled 4.3 billion euros, down from 5.8 billion euros the previous year, reflecting the impact of high interest rates and remote work. This decline contrasts with increased lending for residential and other commercial properties.
This drop occurs despite a recent rise in commercial property prices, highlighting the specific challenges facing office buildings amid broader economic shifts.
Investors fear China-Taiwan conflict, pulling money from Taiwan
Foreign investors are increasingly concerned about a potential Chinese invasion of Taiwan, viewing it as a significant "tail-risk" scenario they must prepare for, but cannot effectively hedge against. This is due to the potential for war and the resulting impact on the market.
Investors are facing a difficult choice: either completely exit the market or remain invested, hoping for the best, as the risk of an invasion is difficult to mitigate. This concern has led to nearly $11 billion in foreign investment being pulled from Taiwan stocks this year.
Geopolitical tensions, particularly those stemming from former President Trump's policies, have heightened these fears, despite Taiwan's economic importance, especially due to Taiwan Semiconductor Manufacturing Co. (TSMC).
Microsoft unveils new AI tools and services
Microsoft heavily emphasized AI at its Build 2025 developer conference, unveiling new tools and services focused on AI integration across various platforms. This signals a significant shift in Microsoft's strategic direction.
Key announcements included an advanced coding agent for GitHub Copilot, a research platform called Microsoft Discovery, and new tuning features for Microsoft 365 Copilot. These tools aim to automate tasks and enhance productivity using AI agents.
These advancements reflect Microsoft's vision of an "agentic web," where AI assistants handle various tasks. The company is investing heavily in AI, anticipating its widespread adoption across diverse industries in the coming years.
House committee advances Trump's tax and spending bill
A massive tax and spending bill championed by former President Trump has passed a key House committee, setting up a vote for passage within hours. The bill extends Trump's 2017 tax cuts.
The Republican-controlled House Rules Committee approved the measure after a lengthy session, despite deep divisions among Republicans. The bill includes tax cuts, spending increases for military and immigration enforcement, and cuts to food and health programs.
The bill's passage faces challenges, including concerns about rising national debt and opposition from Democrats. The nonpartisan Congressional Budget Office estimates the bill will add trillions to the national debt over the next decade.
UK's US trade deal risks violating WTO rules
The UK is facing accusations of violating World Trade Organization (WTO) rules through its recent trade agreement with the United States, potentially straining relations with the EU.
The European Commission expressed concerns that the UK-US deal, which lowers tariffs on some goods, may violate the WTO's Most Favored Nation principle. This principle requires equal treatment for all trading partners, not preferential treatment.
Experts warn that the deal's tariff adjustments and quota changes could be WTO-incompatible. The UK is considering joining a WTO dispute resolution system, but has been hesitant due to concerns about upsetting the US.
White House expects stablecoin bill to unlock trillions
David Sacks, the White House crypto czar, predicts a stablecoin bill will unlock trillions for the U.S. Treasury if passed. This is due to increased demand for U.S. Treasuries.
The GENIUS Act, which regulates stablecoins, is expected to pass with bipartisan support, according to Sacks. The bill has already cleared a key Senate vote, with 15 Democrats supporting it.
Concerns remain about potential conflicts of interest due to President Trump's crypto ventures. The bill aims to provide a legal framework for stablecoins, which are pegged to real-world assets like the dollar.
Blue Origin advances lunar lander propellant transporter
Blue Origin unveiled details about its "transporter" vehicle, a key component for its Blue Moon Mark 2 lunar lander, as it prepares for the first launch of a smaller lander.
The transporter will refuel in Earth orbit and transport propellants to the Moon for the Blue Moon lander, enabling lunar landings. It will use zero-boiloff technology to prevent propellant loss and is designed to carry 100 metric tons to lunar orbit.
Blue Origin is also preparing for the first flight of its Blue Moon Mark 1 robotic lander, scheduled for later this year, with a second lander already in production. The company aims for both uncrewed and crewed landings of the Mark 2 lander before the end of the decade.
Investors are favoring emerging markets over U.S
Emerging markets are poised for a potential bull run, fueled by a shift away from U.S. assets following Moody's downgrade of the U.S. credit rating.
Bank of America and JPMorgan have upgraded emerging market equities, citing attractive valuations and easing U.S.-China trade tensions, as confidence in U.S. assets wanes. The MSCI Emerging Markets Index has outperformed the S&P 500 this year, with a dented confidence in U.S. assets.
Experts point to a weaker dollar, low investor positioning, and discounted valuations as factors supporting emerging markets, with India and Argentina highlighted as promising investment opportunities.