Highlights

• U.S. stocks and the dollar plunged after President Trump publicly attacked Fed Chair Powell and demanded immediate rate cuts; Dow fell 972 points, gold hit a record above $3,400, and Bitcoin neared $90,000.
• S&P 500 E-mini futures dropped 100–120 points after breaking key 5251 support; VIX spiked 15% as volatility surged.
• Foreign investors accelerated selling of U.S. corporate bonds, adding pressure to the dollar and raising concerns about broader U.S. asset outflows.
• U.S. judge ruled Google’s ad tech business is an illegal monopoly; DOJ seeks divestitures that could force a breakup of Google’s core ad units.
• Capital One received final approval to acquire Discover in a $35.3B deal, creating the 8th largest U.S. bank; both stocks rallied pre-market.
• Tesla stock dropped 7% amid Model Y delay and expectations for weakest profit since 2021; analysts cut price targets and warn on margins.
• Eli Lilly’s oral weight loss drug orforglipron succeeded in Phase III trials; Lilly stock surged 14% while UnitedHealth plunged after weak earnings and guidance cut.
• Ford halted U.S. vehicle exports to China as tariffs hit 150%; Mazda also suspended shipments to Canada as auto trade tensions escalate.
• Pro-crypto advocate Paul Atkins sworn in as SEC Chair; CFTC explores 24/7 crypto futures, while BlackRock bought 1,000 BTC for its ETF as Bitcoin approached $88K.
• Oregon AG sued Coinbase over unregistered crypto securities, signaling continued legal uncertainty for U.S. crypto exchanges.
• Chevron began production at its $1.6B Ballymore oil project in the Gulf of Mexico, targeting 75,000 boepd.
• China set a strong yuan midpoint and saw $45B in retail inflows into equities amid trade tensions and new U.S. tariffs.

Market Commentary

Markets enter Tuesday’s session gripped by volatility and heightened risk aversion. President Trump’s public attacks on Fed Chair Powell and calls for immediate rate cuts have rattled investors, fueling fears of central bank politicization and eroding confidence in U.S. monetary policy. The result has been a sharp selloff across equities and the dollar, with safe-haven flows propelling gold to all-time highs above $3,400 and Bitcoin surging near $90,000. The S&P 500’s technical breakdown below 5251 support and a 15% spike in the VIX underscore the fragility of risk sentiment.

Fixed income markets are not immune: foreign investors have accelerated their exit from U.S. corporate bonds, amplifying downward pressure on the dollar and raising the specter of broader capital outflows from U.S. assets. The 10-year Treasury yield has climbed to 4.40%, reflecting both inflation concerns and diminished demand from overseas buyers. Traders should watch for further signs of foreign selling and its impact on credit spreads and the broader risk complex.

In equities, sector rotation is pronounced. Big Tech faces a regulatory reckoning after a U.S. judge ruled Google’s ad tech business an illegal monopoly, with the DOJ seeking structural remedies that could force a historic breakup. Tesla’s woes deepen as delays and weak margins prompt analyst downgrades, while Eli Lilly’s successful weight-loss drug trial has sparked a sharp rally in healthcare, contrasting with UnitedHealth’s plunge on disappointing earnings. Capital One’s acquisition of Discover adds M&A tailwinds to the financials sector, with both stocks outperforming.

Trade tensions remain front and center. Ford’s halt of U.S. vehicle exports to China and Mazda’s suspension of Canadian shipments highlight the real-world impact of escalating tariffs, which are also roiling currency markets. China’s strong yuan fix and retail-driven equity inflows suggest Beijing is actively managing both sentiment and capital flows in response to U.S. actions. Meanwhile, energy markets get a supply-side boost from Chevron’s new Gulf of Mexico project, though geopolitical risks linger amid Israeli military drills and U.S.-Iran tensions.

Crypto assets are in focus as institutional adoption accelerates—BlackRock’s ETF purchase and a pro-crypto SEC chair signal a more favorable regulatory environment, even as legal risks persist (e.g., Oregon’s suit against Coinbase). With volatility elevated and cross-asset correlations rising, traders should be alert for further dislocations at the open, especially in rate-sensitive and high-beta names. Watch for any Fed response to mounting political pressure, and monitor technical levels in the S&P 500 and dollar index for signs of stabilization or further risk-off cascades.