TL;DR

Trump signals Fed Chair pick; US-China trade talks advance; consumer credit jumps past forecasts.

Highlights

• Trump signals imminent Fed Chair announcement; Kevin Warsh rumored as a leading candidate 1.
• US-China trade deal described as "very far advanced," with talks set for Monday and "significant funds" expected 2.
• US consumer credit rose $17.87B in April, sharply above $10B consensus and prior month 5.
• Trump signs executive orders to boost drone defenses, enable eVTOL air taxis, and lift ban on supersonic flights 6.
• $42B broadband program overhauled: price caps and equity rules dropped; Starlink favored but contract uncertainty remains 7.
• Supreme Court grants DOGE (overseen by Elon Musk ) access to Social Security data; FOIA discovery paused 9.
• Elon Musk and Rep. Chip Roy highlight US fiscal concerns as debt nears $37T; May deficit at $180B, interest over $100B 10.
• Trump considers reviewing Musk ’s government contracts, including Tesla , for "fairness" 12.
• Tesla ’s Optimus robotics chief departs; Ashok Elluswamy takes over 8.
• Trump targets federal funding for California universities; state threatens to withhold $80B+ in federal tax payments 13.
• Anthropic launches AI chatbot for US national security; appoints Richard Fontaine to oversight trust 11.
• Ukrainian and Russian forces escalate strikes; Trump criticizes Ukraine’s drone attacks as provoking Russian response 34.

Commentary

Traders are focused on policy signals from the White House and Fed, with Trump hinting at a near-term announcement for the next Federal Reserve Chair. Kevin Warsh, seen as more hawkish than Powell, is reportedly under consideration 1. While Powell’s term runs to 2026, early speculation could impact rate expectations, Treasury yields, and the US dollar as markets reassess the Fed’s future direction.

Macro data showed US consumer credit growing much faster than expected in April, suggesting robust consumer activity but also raising questions about household leverage amid ongoing fiscal stress 5. The US deficit continues to widen, with May’s shortfall estimated at $180B and interest costs exceeding $100B for the month 10. Elon Musk ’s and lawmakers’ warnings about federal spending may keep pressure on long-end Treasuries and raise the risk of further volatility if fiscal concerns intensify 10.

Policy and regulatory moves are in focus across tech and infrastructure. The overhaul of the $42B broadband program removes price and equity restrictions, favoring satellite providers like Starlink, though contract uncertainty persists due to Musk-Trump tensions 7. Trump’s executive orders targeting drones, eVTOLs, and supersonic flight could benefit aerospace and defense sectors 6. Meanwhile, the review of Musk ’s government contracts and Tesla ’s robotics leadership change introduce headline risk for related equities 812.

On the geopolitical front, escalation in Ukraine-Russia border strikes 3 and Trump’s public criticism of Ukraine’s drone tactics 4 may keep defense and energy markets alert to further developments. Domestically, the funding dispute between the Trump administration and California’s universities—paired with the state’s threat to withhold federal tax payments—adds uncertainty for municipal bonds and education-linked sectors 13.

Traders should monitor weekend developments on Fed succession, US-China trade talks, and any shifts in the Musk-government relationship. Expect rate-sensitive assets, tech, and infrastructure names to react to new policy signals at the open.