TL;DR

Trump halts U.S. chip sales to China; Fed stays cautious; crypto access expands for 401(k)s.

Highlights

• Trump administration orders U.S. chipmakers to halt sales to China, escalating tech trade tensions 1.
• Fed minutes highlight inflation risks, weaker 2025–26 growth outlook, and a cautious rate stance 4.
• U.S. Treasury 2- and 5-year note auctions see strong demand, with record foreign participation 3.
• Labor Dept. rescinds 2022 crypto guidance for 401(k)s, easing access to $8.9T in retirement assets 2.
• Vice President Vance calls Bitcoin a “strategic asset,” predicts 100M U.S. users, vows to end crypto crackdowns 5.
• BlackRock to buy 10% of Circle’s USDC IPO; Circle freezes $57M USDC tied to LIBRA memecoin scam 617.
• GameStop acquires 4,710 Bitcoin with recent $1.5B raise; shares fall 10% after announcement 7.
• Tempus AI shares drop up to 15% after Spruce Point short report forecasts 50–60% downside 8.
• German automakers (BMW, Mercedes, VW) in U.S. tariff talks, considering billions in U.S. investment; shares rally 15.
• Nissan launches U.S. buyouts, global job cuts, and delays U.S. EV production amid 25% auto tariffs 10.
• Ford recalls over 1M U.S. vehicles for rearview camera faults; no injuries reported 9.
• China expands naval and bomber deployments in East Asia; U.S. increases Diego Garcia military presence 14.

Commentary

Traders are confronting a mix of policy, macro, and sector-specific headlines into the close. The Trump administration’s directive halting U.S. chip sales to China intensifies existing tech trade friction, likely pressuring semiconductor and supply chain names such as PHLX Semiconductor , Marvell Technology, Inc. Common Stock , GCT Semiconductor Holding, Inc. , VanEck Semiconductor ETF , and iShares Semiconductor ETF 1. Meanwhile, the “TACO trade” narrative—expecting Trump to soften on tariffs—faces a reality check as both the chip ban 1 and ongoing auto tariff negotiations with German manufacturers such as Bayerische Motoren Werke AG (BMW) ADR , Mercedes-Benz Group AG ADR , and Volkswagen AG ADR signal continued trade uncertainty 1516. German automaker shares are up on hopes for a tariff relief deal tied to new U.S. investment 15, but Nissan’s restructuring 10 and Ford Motor Company 's recall highlight sector stress 9.

On the macro front, Fed minutes reinforce a cautious stance, flagging persistent inflation risks and a weaker growth outlook for 2025–26 4. The successful Treasury auctions, with strong foreign demand, indicate continued appetite for U.S. paper despite deficit concerns 3. Traders should watch for curve moves and risk sentiment shifts as the Fed signals it is in wait-and-see mode 4.

Crypto remains in focus. The Labor Department’s reversal on 401(k) crypto guidance 2 and Vice President Vance’s pro-Bitcoin comments open the door for greater institutional and retail participation in digital assets 5. BlackRock ’s stake in Circle’s IPO 6 and GameStop Corp. Class A ’s sizable Bitcoin purchase 7 further highlight mainstream adoption, though GameStop’s stock drop shows that crypto treasury moves can be met with skepticism 7. Regulatory and compliance risks remain, as seen in Circle 's USDC freeze linked to a memecoin lawsuit 17.

Geopolitical risk is elevated. China’s increased military presence in East Asia and the U.S. buildup at Diego Garcia add to regional uncertainty, which could affect defense, energy, and shipping names such as iShares Defense Industrials Active ETF , Themes Transatlantic Defense ETF , Northrop Grumman Corp. , Boeing Company , and RTX Corporation 14. In equities, sector rotation is evident: high-multiple tech (e.g., Tesla, Inc. Common Stock ) faces valuation-driven outflows 18, Tempus AI is hit by short-seller pressure 8, and auto stocks are moving on trade headlines 1510. Into the close, traders should monitor headline risk, sector flows, and potential late-session volatility.