Welcome to the world where the economy feels like a rollercoaster ride, starring Donald Trump, tech giants, and the Federal Reserve! Yesterday, we witnessed a drop in stock prices on Wall Street, especially in the tech sector, while the dollar slid to its lowest level in over three years. Is this the beginning of the end for tech giants or just another correction in an overvalued market? Let’s dive into the chaos!
Tech Giants Falling from the Heights
After the S&P jumped over 10% and Nasdaq soared 17% in Q2, these indices took a sharp hit yesterday. Nasdaq fell 0.82%, S&P dropped 0.11%. Tesla was among the biggest losers, with shares down over 5%. Why? Because tech stocks were overvalued, analysts say. Farz Azarm from Mizuho Americas notes that the market cooling was expected after such a surge.
Trump vs. Powell: The Interest Rate War
US President Donald Trump has been pressuring the Federal Reserve for months to slash interest rates immediately, threatening to fire Fed Chair Jerome Powell. Powell, however, stands firm, saying the economy is growing solidly and there’s no need for urgent rate cuts. This clash adds more uncertainty to the markets.
The Big Beautiful Bill: Trump’s Economic Bombshell
Despite the stock drop, Trump scored a big political win — the Senate passed his “Big Beautiful Bill” on the budget. The bill keeps Trump’s tax cuts from his first term, increases immigration control, cuts healthcare spending, and introduces new migrant taxes. Critics warn Medicaid cuts could leave 12 million Americans without health coverage.
Dollar Falls, Oil Rises Slightly
The dollar hit its lowest level since March 2020, while the euro rose to its highest in three years. Oil prices edged up, with Brent crude around $67.20 per barrel and US crude at $65.50, supported by strong demand and increased Chinese imports of Iranian oil.
What’s Next?
The economy is on edge, the tech sector is shaking, and political games between Trump and the Fed only complicate things. Will Trump’s “Big Beautiful Bill” bring economic growth or increase deficit and inequality? Will tech giants recover or is this the start of their downfall? And while the dollar falls, oil holds steady — who will come out on top?
Got thoughts on this economic circus? Drop a comment! Are you Team Trump or not? Or maybe you think tech giants are just overhyped? Let’s have some fun and debate!
