TL;DR

Trump to set broad tariffs; consumer sentiment drops; DOJ may drop Boeing charges, pay $444.5M.

Highlights

• Trump administration to send tariff notices to 150 countries; China tariffs to remain at 30% through late 2025 1.
• House Budget Committee blocks Trump’s $2T tax cut and spending bill after five GOP defections; further negotiations planned 2.
• U.S. consumer sentiment falls to 50.8, near record lows; 1-year inflation expectations jump to 7.3% 3.
• Fed to reduce workforce by ~2,400 jobs (10%) over several years, mainly via attrition 13.
• April U.S. housing starts rise 1.6% but miss forecasts; permits and completions decline 12.
• DOJ may drop Boeing criminal charges over 737 MAX crashes, proposes $444.5M payout to victims’ families 6.
• Verizon ends all DEI programs, secures FCC approval for $9.6B Frontier acquisition; deal to close in H2 2025 7.
• Anthropic secures $2.5B credit line, $2B Q1 revenue; OpenAI to launch Codex 1 software agent post-Windsurf acquisition 1516.
• Galaxy Digital lists on Nasdaq as GLXY, closes down 5% on debut; eyes stock tokenization, major data center 10.
• 14 U.S. states increase MicroStrategy holdings to $632M for Bitcoin exposure; Trump urges U.S. crypto engagement 1819.
• Israel strikes Houthi-controlled Yemeni ports after missile attacks; no major shipping disruptions reported 4.
• China overtakes U.S. as top buyer of Canadian oil via expanded Trans Mountain pipeline 9.

Commentary

Trade policy remains a central market driver as the Trump administration prepares to unilaterally set tariffs for 150 countries, with China tariffs holding at 30% 1. This approach, coupled with heightened consumer inflation expectations (7.3%, highest since 1981) and a sharp drop in sentiment, signals persistent headwinds for consumer-facing equities and import-dependent sectors 3. The failed advance of the $2T tax cut and spending bill adds to fiscal uncertainty, with further negotiations likely to keep markets cautious around policy risk 2.

Macro data offered little relief. Housing starts edged up but missed expectations, while permits and completions declined, pointing to ongoing weakness in residential construction 12. The Fed’s plan to trim its workforce by 10% over several years, mostly through attrition, aligns with broader cost-control efforts and hints at a cautious institutional outlook 13.

In corporate news, the DOJ’s potential non-prosecution agreement with Boeing could remove a legal overhang, though public backlash may linger 6. Verizon ’s $9.6B Frontier acquisition cleared regulatory hurdles after ending all DEI initiatives, setting up a major expansion of its fiber footprint 7. In technology and crypto, Anthropic’s $2.5B credit line and OpenAI’s Codex launch highlight continued capital flows and innovation in AI 1516, while Galaxy Digital ’s Nasdaq debut and rising state-level MicroStrategy exposure underscore growing institutional participation in crypto . President Trump’s call for U.S. engagement in digital assets further supports the sector’s momentum 1819.

Energy flows continue to shift as China becomes the top buyer of Canadian oil via the expanded Trans Mountain pipeline, reflecting changes in global trade patterns amid U.S. protectionism 9. Meanwhile, Israeli strikes on Yemeni ports have not yet disrupted shipping, but the situation warrants monitoring for potential escalation 4.