Investment Week at a Glance
Stocks finished lower for the week. The Dow Jones Industrial Average fell 2.5%, the S&P 500 was down 2.6%, and the NASDAQ fell 2.5%. Foreign stocks (MSCI EAFE) were up, rising 1.2%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.51%. (Data source: Wall Street Journal)
House Passes Tax Bill
On May 22nd the House passed the tax bill by one vote, sending it to the Senate. This bill primarily extends the current 2017 tax cuts, while also introducing additional cuts for tips, overtime, and seniors. Congress has a set goal of July 4th to pass this bill completely, so this will likely be a drawn-out process that may cause some market volatility if we approach that date without a deal in place. The current bill is estimated to add $3 trillion to the deficit over the next decade but is likely not final yet so that number could change.
EU Tariffs Delayed Until July 9th
President Trump threatened a 50% tariff on the EU as he said they were not negotiating and needed to come to the table. Ursula von Der Leyen, the European Commission President, asked for more time to negotiate and the deadline was pushed until July 9th. Markets took well to this news Monday as stocks opened higher after a rough week as trade worries continue. It would seem that markets are optimistic a deal will be reached by then to avoid a higher tariff.
Salesforce to Acquire Informatica for $8 Billion
Salesforce announced today that it will be buying cloud data management firm Informatica for $8 billion. Salesforce specializes in customer relationship management software and continues to grow. This is their 4th acquisition since 2018 and have spent a total of $57.9 billion on those 4 deals. The company has had a rough year down 17% but still has a value of $264 billion. (CNBC)
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Quiz
How much money did the U.S Federal Government collect in 2024? (Scroll Down for Answer)
- $3.2 trillion
- $3.8 trillion
- $4.1 trillion
- $4.9 trillion
Answer:
- D) $4.9 trillion, the Federal government spent about $6.8 trillion in 2024, adding nearly $1.9 trillion to the deficit.
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