The S&P 500 touched bear market territory to open the trading day on Monday, April 7. Stock markets continued to trek in the red in response to President Trump’s tariffs.
Hong Kong’s Hang Seng Index had its worst trading day since 1997, dropping 13.2%.
Trump described his tariff policies as “medicine,” and the White House said more than 50 countries have reached out to negotiate trade terms.
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Stocks entered bear market territory on Monday, April 7, as investors continued dumping stock in the wake of President Donald Trump’s tariff policies. The S&P 500, Dow Jones Industrial Average and Nasdaq each fell more than 4% to start the trading day, while the S&P 500 officially traded in bear market territory.
A bear market is typically when a stock index falls 20% from a recent high. In the case of the S&P 500, a weighted index of the 500 largest companies listed in the U.S., the most recent high is the closing record of 6,144.15, hit on Feb. 19.
Minutes after the stock market opened on Monday, the S&P 500 traded below 4,915, marking a more than 20% decline. If the S&P 500 closes the trading day below that mark, it will signify a bear market.
The cause of this trek into bear market territory is straightforward. President Trump’s widespread tariff policies rocked markets after he announced them on Wednesday, April 2, and stock markets around the world have been taking a beating ever since. By Monday morning, the S&P 500 had fallen more than 12% since Wednesday’s close.
“I don’t want anything to go down. But sometimes you have to take medicine to fix something,” Trump said about the stock market aboard Air Force One on Sunday, April 6.
Some global stocks have worst day in decades
The financial fallout is not limited to the U.S. In Asia, Hong Kong’s Hang Seng Index fell 13.2% on Monday, the most significant single-day decline since the 1997 Asian financial crisis. The index includes many companies involved in global trade on the Chinese mainland.
China announced it would retaliate against Trump’s 34% tariffs by implementing 34% tariffs of its own. It also targeted some American companies and plans to restrict exports of rare earth minerals.
Over the weekend, the 10% tariff baseline on all U.S. imports took effect. The so-called reciprocal tariffs are set to take effect on Wednesday, April 9, which includes that 34% levy on Chinese goods.
The Trump administration said more than 50 countries have reached out to negotiate trade terms.
An error in the equation?
While the Trump administration long referred to the coming tariff rates on other countries as reciprocal, the calculations point to a different equation. Straight Arrow News took a look at that formula and how each country’s “tariff rate” was calculated. Essentially, the tariff rate is equal to the trade deficit divided by U.S. imports.
The conservative think tank American Enterprise Institute said the more complex equation the White House claimed to use has an error that inflates the tariff rate.
“Their mistake is that they base the elasticity on the response of retail prices to tariffs, as opposed to import prices as they should have done,” the editorial reads.
If the error is corrected, the 49% tariff rate on Cambodia would change to 13%, for example.
European, Asian stocks plummet amid Trump’s new tariffs
All eyes are on the stock market as President Donald Trump’s tariffs fallout on dozens of other countries continues. What to expect at the opening bell and the president’s remarks on the nation’s trade deficit. Also, deadly spring storms — ranging from tornadoes to rising rivers and flooding — are predicted to persist this week, impacting areas most susceptible to severe weather. These stories and more highlight your Unbiased Updates for Monday, April 7, 2025.
European, Asian stocks plummet amid Trump’s new tariffs
Stock shares continue to plummet worldwide as increased U.S. tariffs and retaliation from China trigger massive sell-offs.
European shares tracked Asian markets downward, as Germany’s DAX fell 6.5%, while France’s benchmark stock index declined 5% and Britain’s FTSE (Footsie) 100 dropped 4.5%.
Meanwhile, U.S. futures indicated further weakness ahead of trading on Wall Street on Monday, April 7.
The futures for both the Dow and the S&P 500 are down more than 4%, while the Nasdaq futures are down by more than 5%. Monday could be another rocky day on Wall Street as it heads toward bear market territory.
On Friday, April 4, the worst market crisis since the COVID pandemic shifted into high gear occurred, as the S&P plummeted 6%, the Dow plunged 5.5% and the Nasdaq composite dropped 5.8%.
Still, President Donald Trump won’t back down from his tariffs.
“I don’t want anything to go down, but sometimes you have to take medicine to fix something,” Trump said.
He continued, “We will be taking in over a trillion dollars over the next short period of time with the tariffs that I’ve already instituted. They’re already in place. Now, what’s going to happen with the market? I can’t tell you, but I can tell you our country has gotten a lot stronger.”
Trump administration officials said more than 50 nations have already called about launching negotiations to lift the tariffs.
“We have massive financial deficits with China, the European Union and many others. The only way this problem can be cured is with tariffs,” Trump posted to Truth Social.
Deadline looms for Trump administration to return deported Maryland man to US
A federal judge gave the Trump administration until 11:59 p.m. on Monday, April 7, to return a Maryland man to the U.S. after his wrongful deportation to a high-security prison in El Salvador.
AP Photo/Jose Luis Magana
AP Photo/Jose Luis Magana
The Trump Administration asked the federal judge on Friday, April 4, to postpone the deadline for returning Kilmar Abrego Garcia to the U.S. However, the judge determined that Abrego Garcia’s deportation was a “grievous error” that needed rectification.
The Trump administration admitted to mistakenly deporting Abrego Garcia, who was under a 2019 court order not to be sent to El Salvador due to fears of reprisal from a violent gang.
Meanwhile, the Justice Department placed the attorney who argued on behalf of the government on Friday, April 4, on indefinite paid leave for what Attorney General Pam Bondi called a failure to “zealously advocate on behalf of the United States.”
Last week, Vice President JD Vance called Abrego Garcia a convicted MS-13 gang member who has no legal right to be here.
Dangerous flooding to persist for days in South, Midwest following deadly storms
Forecasters warned of dangerous conditions in the days ahead following a storm system that swept through parts of the South and Midwest, from Texas to Ohio.
Since Wednesday, April 2, officials reported that at least 20 people have died across seven states due to the outbreak of severe weather. This includes a 9-year-old boy from Kentucky who was swept away by floodwaters while walking to a bus stop.
A strong EF-3 tornado ripped through Selmer, Tennessee, killing several people on Thursday, April 3.
In Kentucky, rising and churning rivers have prompted evacuations and warnings for people to move to safer ground. Rescues continue in flooded areas.
Residents in low-lying areas are preparing for potential flooding. Forecasters predict that the Kentucky River will reach a historic crest on Monday, April 7, putting to the test the flood walls constructed to protect against severe flooding.
RFK Jr. touts MMR vaccine following second US measles death
Health and Human Services Secretary Robert F. Kennedy Jr. has touted the measles, mumps and rubella vaccine as the “most effective” way to prevent the spread of measles.
Kennedy visited Texas and met with the family of an 8-year-old girl who died from the disease.
In Seminole, Texas, with Jake and Tina Fehr whose 2-year-old daughter, Helena was just discharged after three weeks in the ICU, Peter and Eva Fehr whose daughter, Kayley, 6, passed in February, and Pete and Eva Hildebrand whose daughter, Daisy, 8, we buried this afternoon. I also… pic.twitter.com/BjErlRkCJX
Two Texas children have now died from the preventable disease.
According to The New York Times, the hospital in Lubbock, where the second child died, confirmed that the child was not vaccinated.
The first child to die from the outbreak occurred in late February.
At the time, Kennedy, who has a history of vaccine skepticism, appeared to downplay concerns about the significance of the outbreak.
The measles outbreak has spread rapidly since January in the South Plains and Panhandle regions of Texas, with nearly 500 people infected, many of whom are school-aged children.
Trump to meet with Netanyahu about war in Gaza, tariffs
On Monday, April 7, Trump will host Israeli Prime Minister Benjamin Netanyahu at the White House.
The Israeli leader posted on Sunday, April 6, that he will be talking with Trump about several issues related to the war in Gaza. One of his main concerns includes the hostages that Hamas continues to hold since it attacked Israel in October 2023.
Netanyahu will likely discuss Israel’s strategy for achieving victory in Gaza, where a ceasefire collapsed in March due to Israel’s massive ground offensive. He also hopes to discuss and resolve Trump’s tariffs on the Middle Eastern nation.
Netanyahu expressed his hope to be able “to help on this issue.”
He pointed out that he is the first foreign leader to meet with Trump regarding the tariff issue, which is important to the Israeli economy, and that a long line of other leaders wishes to do the same.
On Wednesday, April 2, Trump imposed 17% tariffs on Israeli goods. Israel had canceled its tariffs on American products to “strengthen the alliance and ties between Israel and the U.S.”
UConn sweeps South Carolina for record 12th championship win
As the Florida Gators and Houston Cougars prepare for Monday night’s showdown on the hardwood for the NCAA Men’s Basketball Championship game, the women’s side has already crowned its top team.
— NCAA March Madness (@MarchMadnessWBB) April 6, 2025
They are the first trio of teammates to each score 100 points in an NCAA tournament since the 2009 UConn group of Maya Moore, Renee Montgomery and Tina Charles.
Strong is the first player in history to record at least 20 points, 15 rebounds, and five assists in a national championship game.
Capitals’ Alex Ovechkin surpasses Wayne Gretzky’s all-time scoring record
Hockey star Alex Ovechkin made history this weekend by officially breaking “The Great One” Wayne Gretzky’s all-time scoring record.
Ovechkin netted his 895th goal during the Washington Capitals game against the New York Islanders on Sunday, April 6, beating fellow Russian Ilya Sorokin in the second period.
It was the first time Ovechkin had ever scored on Sorokin, making him the 183rd different goaltender Ovechkin has scored on.
Gretzky was there to congratulate Ovechkin on the achievement and participated in the festivities. Ovechkin and Gretzky have played exactly the same number of games: 1,487.
However, despite the big win for Ovechkin, it was the Islanders who defeated the Capitals 4 to 1.
Trump reaffirms support for tariffs despite stock market losses
Stocks continue to fall after President Donald Trump announced blanket 10% tariffs and reciprocal duties against more than 180 countries. And a federal judge now says he may hold the government in contempt of court regarding deportation flights to El Salvador. These stories and more highlight your Unbiased Updates for Friday, April 4, 2025.
Trump doubles down on support for tariffs despite US stock market losses
President Donald Trump reaffirmed his commitment to the tariffs imposed this week aboard Air Force One, comparing the U.S. economy to someone who has just had surgery, survived the operation and is now recovering.
The president showed optimism despite the Dow Jones Industrial Average plunging nearly 1,700 points Thursday, April 3. A global sell-off led U.S. stocks after Trump announced reciprocal tariffs against more than 180 countries and territories on Wednesday, April 2.
“It was a sick patient. It went through an operation on ‘Liberation Day,’” Trump said. “And it’s going to be — it’s going to be a booming country. A very booming country. It’s going to be amazing, actually. And we see it because we have trillions of dollars committed to come in. Trillions.”
On Wednesday, the president announced a 10% across-the-board tariff on imports, with even higher tax rates on products from countries such as China, Japan and Vietnam, as well as from members of the European Union.
Still, stock futures lowered even more Friday morning, April 4, despite Trump remarking late Thursday that the markets will “boom.”
Straight Arrow News business correspondent Simone Del Rosario analyzes Trump’s “Liberation Day” impact on the markets here.
NSA director reportedly fired by Trump administration
The Trump administration fired the head of the National Security Agency and U.S. Cyber Command, according to multiple sources.
According to the Washington Post, Noble will take a different position in the Pentagon.
It’s still unclear why they were fired, but this occurred amid significant changes in the government structure during Trump’s new term.
U.S. Cyber Command Deputy Lt. Gen. William Hartmann has reportedly been appointed as the acting NSA director. Sheila Thomas, who previously served as the executive director at the NSA, will assume the role of acting deputy director.
Judge blocks Trump administration over $11B in cuts to public health funding
A federal judge on Thursday temporarily blocked the Trump administration’s attempt to cut more than $11 billion in public health funding to states as nearly two dozen states and the District of Columbia sued to keep the money flowing.
The states are taking legal action against the Department of Health and Human Services and Secretary Robert F. Kennedy, stating that the funds are necessary for “urgent public health needs,” including the monitoring of diseases and vaccines, as well as mental health and addiction services.
The Trump administration contends the end of the COVID-19 pandemic justifies cutting funding that was first offered to state and local health departments during the public health emergency caused by the coronavirus.
Judge Mary S. McElroy, appointed by President Donald Trump during his first term, presided over Thursday’s hearing.
New York Attorney General Letitia James, who represents one of the states in the lawsuit, wrote on X that she will “continue to fight to ensure states can provide the medical services Americans need.”
James and Trump have engaged in various lawsuits over the last few years.
Judge may hold Trump administration in contempt regarding deportation flights
A federal judge said there is a “fair likelihood” that the Trump administration violated his order to turn around two planes carrying suspected Venezuelan gang members, and he indicated that he may hold the government in contempt of court regarding this matter.
Judge James Boasberg, who blocked the administration’s deportation flights of apparent Tren de Aragua gang members last month, said Thursday that the administration possibly “acted in bad faith” by not returning the planes to the U.S.
Instead, the flights continued to El Salvador, where more than 200 Venezuelan nationals are currently in a maximum-security prison.
Boasberg issued a temporary order halting deportations under the Alien Enemies Act that the Trump administration was using to deport suspected illegal immigrants.
At Thursday’s hearing, the Department of Justice attorney argued that the government complied with Boasberg’s order, but did not know who instructed the planes to continue to El Salvador.
South Korea’s impeached president removed over martial law order
South Korea’s constitutional court officially ousted embattled President Yoon Suk Yeol.
The court’s unanimous decision on Friday signifies Yoon’s formal dismissal from the presidency after parliament voted to impeach him in December 2024, following his brief declaration of martial law.
His removal takes effect immediately, meaning he must now leave the presidential residence. An election will also be held to replace him.
South Korean Prime Minister Han Duck-soo stepped in as acting president.
In a separate criminal trial, police arrested Yoon in January on charges of leading an insurrection.
However, he was released in March after a court canceled his arrest warrant. The court did not drop his charges.
Women’s Final Four: UCLA, UConn, South Carolina, Texas chase history
It’s Final Four weekend in both the men’s and women’s NCAA basketball tournaments. In both leagues, just four teams remain.
— NCAA March Madness (@MarchMadnessWBB) April 3, 2025
The women’s NCAA Final Four features three No. 1 seeds, including the defending national champs, and a team that has won a record 11 national titles. The first women’s matchup tips off Friday, April 4, in Tampa, Florida.
Straight Arrow News sports reporter Chris Francis takes a look at the powerhouse schools aiming to make history here.
Dow Jones drops nearly 1,700 points as Trump’s tariffs roil stock market
The Dow Jones fell 4%, the S&P 500 fell nearly 5% and the tech-heavy Nasdaq dove nearly 6% as investors reacted to President Donald Trump’s tariffs. It’s the worst single trading day for the stock market in years.
Some countries are considering retaliation against the U.S. for imposing steep tariffs.
Global markets also fell Thursday, April 3, the first chance for traders to react since Trump announced his “Liberation Day” tariffs.
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The stock market took its steepest dive in years on Thursday, April 3, as traders reacted to President Donald Trump’s tariff policies. The Dow Jones Industrial Average lost more than 1,600 points, the biggest hit to the index since 2020.
The S&P 500 fell nearly 5% while the tech-heavy Nasdaq plunged nearly 6%. The 500 largest companies lost nearly $2 trillion in value in a single day.
Apple fell more than 9%, Amazon also fell 9% and Nvidia was down nearly 8% at the close. Nike took a 14% hit, while Target was down nearly 11%.
The U.S. was not alone in the rout. Global markets also fell, with benchmarks in Europe and Asia losing around 3%.
“I think it’s going very well,” President Donald Trump said when asked about his tariffs on Thursday. “The markets are going to boom.”
How much is the US planning to charge?
It’s the first time investors in the U.S. had the opportunity to react since Trump announced his “Liberation Day” tariffs. All U.S. imports will be subject to a 10% tariff starting April 5. The varying tariff levels calculated by trade deficits will go into effect on April 9.
China will face a new 34% tariff on top of the existing 20% tariff Trump previously imposed. Canada and Mexico were excluded from the latest round due to the 25% tariffs already planned.
Some countries are vowing to retaliate against the U.S. and Trump’s tariff policies, while others are hoping to negotiate their position.
The White House kept quiet about the exact details of the Liberation Day tariffs until the Wednesday afternoon announcement, which occurred after the stock market closed.
“For nations that treat us badly, we will calculate the combined rate of all their tariffs, nonmonetary barriers and other forms of cheating,” Trump said on April 2.
Liberation Day was a promise to apply reciprocal tariffs to countries around the globe. However, the calculation appears to rely on import and export data, not tariffs.
For how the Trump administration calculated the rates to charge trading partners, click here.
Stock market dips as Trump threatens EU with 200% tariffs
President Donald Trump threatened the EU with 200% tariffs. The move comes after the EU responded to U.S. tariffs on steel and aluminum.
A new poll finds the majority of Americans believe Trump’s moves on the economy are “too erratic.”
The S&P 500 dipped into correction territory Thursday as some of America’s most prominent CEOs said uncertainty is bad for business.
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President Donald Trump threatened a 200% tariff on specific products from the European Union on Thursday, March 13. The president’s latest salvo in his trade regime hit as policy uncertainty weighs on markets.
Trump’s 200% threat would apply to alcohol imports coming from the EU, according to a Truth Social post. He said the EU must remove its retaliatory tariffs on the U.S.
What’s the latest on the tariff back-and-forth?
Trump officially implemented a 25% tariff on steel and aluminum on Wednesday, March 12. The EU responded by issuing duties on American items like motorcycles and whiskey.
“The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky,” Trump wrote on Truth Social.
“If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES,” he added in the post.
“The Entire World is RIPPING US OFF,” the president said in a separate post later Thursday.
Do Americans think Trump’s moves are “too erratic?”
This week, a new poll found the majority of Americans believe Trump’s economic policy moves have been “too erratic.”
A Reuters/Ipsos poll of 1,422 Americans taken this week found 57% believe “Trump’s moves to shake up the economy” are “too erratic.” Meanwhile, 60% of Republicans disagreed with the statement, while only 29% agreed.
Six in 10 Americans said they think the president should focus on inflation over anything else. Seven in 10 said they believe higher tariffs will lead to higher prices.
A majority of Republicans support Trump’s tariff policies
More than half of Republicans surveyed agreed higher tariffs are a good idea even if prices increase and said that workers come out ahead when the U.S. charges tariffs. They disagreed that tariffs cause more harm than good.
When polling all adults, only around one-third agreed that higher tariffs are a good idea in the face of rising prices and that workers come out ahead. More than half said tariffs will do more harm than good.
The Reuters/Ipsos poll found 39% of voters approve of Trump’s handling of the economy. Trump’s numbers are still higher than what his predecessor President Joe Biden scored for the majority of his term in the White House. However, in Trump’s first term, he never scored below 44% in this category.
Some CEOs say uncertainty is bad for business, but others say wait and see
The stock market is sitting at a six-month low. After a post-election rally on Trump’s victory, stock market indexes have given up those gains. On Thursday, the S&P 500 dipped into correction territory as the major indexes slid more than a full percent by Thursday afternoon.
Some of the most prominent CEOs in the world are highlighting the uncertainty created by these tariffs. JPMorgan Chase CEO Jamie Dimon notably changed his tune on trade duties.
“I don’t think the average American consumer who wakes up in the morning and goes to work changes what they’re going to do because they read about tariffs,” Dimon told Semafor at a summit on retirement hosted by BlackRock and the Bipartisan Policy Center. “But I do think companies might. Uncertainty is not a good thing.”
In January, Dimon claimed tariffs were good for national security and that critics need to “get over it” if they are a little inflationary.
“The collective impact in the short run is that people are pausing, they’re pulling back,” BlackRock CEO Larry Fink told CNN at the same event. ”Talking to CEOs throughout the economy, I hear that the economy is weakening as we speak.”
Meanwhile, the CEO of Goldman Sachs is taking a more patient approach on Trump’s policy.
“I think the business community understands what the president is trying to do with tariffs,” David Solomon said during an appearance on Fox Business’ “Mornings with Maria.” “Now, the business community is always going to want lower tariffs everywhere, everywhere in the world. At the moment, there is some uncertainty. The market is digesting that, but we’re going to have to watch and see how this all plays out.”
Stock market continues its dive as Trump leaves recession on the table
The Dow tumbled nearly 900 points and the Nasdaq just had its worst trading day since 2022 as stocks roiled Monday, March 10.
President Donald Trump declined to rule out an upcoming recession during an interview that aired Sunday. The comments come as the stock market was already sinking with uncertainty over the administration’s tariff policies.
U.S. Commerce Secretary Howard Lutnick firmly wrote off the chance of a recession.
“I hate to predict things like that,” he said in response to a question from Bartiromo about whether there would be a recession. “There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. It takes a little time.”
But some in the Trump administration are more definitive when it comes to questions about a recession.
“Donald Trump is a winner; he’s going to win for the American people,” Commerce Secretary Howard Lutnick said during an appearance on NBC’s “Meet the Press” on Sunday, March 9. “That’s just the way it’s going to be. There’s going to be no recession in America.”
Stock market sinks on Trump’s comments, tariff developments
All three major stock market indexes sank on Monday, March 10, as investors are rattled about what the future holds regarding tariffs.
The Nasdaq had its worst day since 2022, dropping 4% in a single day. The S&P 500 dropped 2.7%, while the Dow Jones Industrial Average fell nearly 900 points, closing about 2.1% down.
A recent survey of economists from the U.S., Canada and Mexico by Reuters found 70 of the 74 polled said the risk of recession in their economies has increased.
“I wanted to help Mexico and Canada to a certain extent. We’re a big, big country, and they do a lot of their business with us, whereas in our case, it’s much less significant,” Trump said in the Sunday interview. “And I wanted to help the American car makers until April 2.”
Election gains wiped from the board
Markets have been reeling in recent weeks as investors worry about the impact the president’s tariffs could have on U.S. consumers and the economy as a whole. During the week of March 3, the S&P 500 and tech-heavy Nasdaq each lost more than 3%. Meanwhile, the Dow fell 2.4%.
Markets surged after Trump won the election in November. As of Monday, the S&P 500 and Nasdaq have given up all of those gains and are now below where they were on Election Day.
“What I have to do is build a strong country. You can’t really watch the stock market,” Trump said of recent swings in equity markets. “If you look at China, they have [a] 100-year perspective. We go by quarters.”
But two consecutive quarters of economic contraction doesn’t necessarily signify a recession these days. A group of eight economists at the National Bureau of Economic Research are tasked with taking a more nuanced approach to declaring an official recession. The experts who make the decision say a recession “involves a significant decline in economic activity that is spread across the economy and lasts more than a few months.”
Government shutdown looms as House votes against latest funding bill
A government shutdown looms nearer after the House rejected a bill that would have kept it funded into March. And drones are now banned in parts of New York and New Jersey after a spate of mysterious sightings. These stories and more highlight your Unbiased Updates for Friday, Dec. 20, 2024.
House votes against latest stopgap bill aimed to avoid government shutdown
The House rejected a stopgap bill Thursday, Dec. 19, that would have kept the government running. The vote came ahead of a potential shutdown starting at midnight Saturday, Dec. 21, when lawmakers head home for the holidays.
The bill fell short of the needed two-thirds majority to speed up its passage. More than three dozen Republicans joined 197 Democrats in voting against it. Republicans split with each other on how the bill handles government spending.
“Three hundred and thirty billion dollars. Congratulations. You’ve added to the debt since you were given the majority again on Nov. 5,” Rep. Chip Roy, R-Texas, said.
Roy voted against the bill.
He added, “It’s embarrassing. It’s shameful. Yes, I think this bill is better than it was yesterday in certain respects. But to take this bill, to take this bill yesterday and congratulate yourself because it’s shorter in pages but increases the debt by $5 trillion, is asinine.”
Meanwhile, Rep. Anna Paulina Luna, R-Fla., said on the House floor, “The deal on the table will keep the government open for the American people and if you guys so choose to shut it down, it will be on you but not the Republican Party.”
She added, “We will not be going back to the table. This deal stands as it is. So let you go back home on Christmas and explain to your people why you shut down the government because we won’t be doing it.”
The latest spending bill, known as a continuing resolution, is a quickly amended bill tailored to the liking of President-elect Donald Trump and his top ally Elon Musk.
Musk postedrepeatedlyonX condemning the original bill. House Speaker Mike Johnson, R-La., worked on it with bipartisan support from Republicans and Democrats.
However, when both Musk and Trump opposed the bill, that guaranteed most House Republicans would vote against it and forced Johnson to craft a new bill.
Now, there are two conflicting interests. Musk wants major government spending cuts, and while Trump agrees, he also wants to permanently suspend the debt ceiling.
The new plan lifts the debt limit, leading Trump to support the bill in a Truth Social post.
“Now we can Make America Great Again, very quickly, which is what the People gave us a mandate to accomplish,” Trump posted.
But Democrats attacked the bill over what spending Republicans chose to cut.
“The Musk-Johnson proposal is not serious, it’s laughable,” said House Minority Leader Rep. Hakeem Jeffries, D-N.Y. “Extreme MAGA Republicans are driving us to a government shutdown.”
The bill removed funding for a bipartisan program for pediatric cancer research, studying genetic conditions like Down syndrome and treatment options for sickle cell disease as well as cancers.
It will be on Johnson to craft a bill to secure votes from the majority of the House.
However, Johnson may not have the political leeway to rely on support from Democrats. He’ll need nearly every returning member of the House Republican caucus to vote for him next month to remain speaker.
The new Congress takes office in the new year.
New details of accused UnitedHealthcare CEO shooter’s plan emerge
Newly unsealed court documents put into perspective what led up to the deadly shooting of UnitedHealthcare CEO Brian Thompson. A federal complaint shed light on 26-year-old Luigi Mangione’s “hostility toward the health insurance industry and wealthy executives in particular.”
In a notebook found on Mangione when he was arrested, he allegedly wrote of his plans to “wack” an insurance company CEO at its investor conference. Federal prosecutors said he traveled from Georgia to New York to stalk and kill Thompson.
Magione appeared in a New York courtroom Thursday, and four new federal charges were levied against him. The charges included murder with a firearm, which is an offense punishable by the death penalty.
The hearing followed Mangione’s extradition from Pennsylvania, where police arrested him on Dec. 9, to New York.
Armed guards surrounded Mangione as NYPD officers walked him off a helicopter upon his arrival in Manhattan. New York City Mayor Eric Adams joined the walk.
“Police Commissioner [Jessica] Tisch and I all want to send a very clear and loud message that this act of terrorism and the violence that stems from it is something that will not be tolerated in this city,” Adams told the press at the site of the helicopter arrival.
Mangione already faces state-level charges in New York. Manhattan District Attorney Alvin Bragg brought charges against him Tuesday, Dec. 17, including for murder as an act of terrorism.
However, Mangione also received a hero’s welcome from protesters outside the courthouse. Thompson’s killing sparked backlash against the health insurance industry and its coverage policies.
While judges have not set any dates yet, Mangione will face state-level charges first. A federal trial will follow.
New York abolished the death penalty, meaning it’s not an option for Mangione in the state-level case. However, the death penalty can still be exercised in the federal case.
FAA temporarily bans drones in parts of New York and New Jersey
Drones are now banned in parts of New York and New Jersey — at least for the time being. It comes amid an investigation into multiple mysterious sightings over the last month that set off fear and speculation.
In a statement, New York Gov. Kathy Hochul said the Federal Aviation Administration’s bans are “purely precautionary.” Meanwhile, the FAA’s restrictions in New Jersey are largely aimed at limiting drone flights over power stations and infrastructure.
The FAA implemented emergency flight restrictions across New Jersey, prohibiting drone operations until Jan. 17, 2025, for “special security reasons.” Unless operators obtain special government clearance, the directive bans uncrewed aircraft within a one-nautical-mile radius of designated areas and up to 400 feet in altitude.
The FAA designated areas such as Camden, Jersey City, Elizabeth and South Brunswick as “National Defense Airspace.”
Violators may face severe penalties, including interception, detention, certificate revocation and potential criminal charges. In extreme cases, authorities are authorized to use “deadly force” against drones posing an “imminent security threat.”
These restrictions follow a surge in unexplained drone sightings across New Jersey and nearby states that began in mid-November. Federal agencies, including the Federal Bureau of Investigation (FBI) and the Department of Defense (DOD), received over 5,000 reports of drone activity.
Dow Jones snaps worst losing streak in 50 years
The Dow Jones Industrial Average snapped its worst losing streak in 50 years Thursday. The losing streak lasted 10 days.
During the losing streak, the market wiped out all of its post-election gains. The Dow ended Wednesday down 2.5% from when Trump won the election.
Also on Wednesday, Wall Street’s fear gauge, the CBOE Volatility Index, had its second-biggest percentage spike in history. The VIX shot up 74% after the Federal Reserve shared its outlook for the coming year.
On Wednesday, the Fed cut its benchmark interest rate for a third time in 2024, which was widely predicted.
Feeling the holiday blues?
The holidays are often called “the most wonderful time of the year,” but the season can bring about sadness and stress for many. This -emotional shift, commonly known as the “holiday blues” or seasonal affective disorder (SAD), can affect millions of people across the country.
Licensed adult psychiatrist Dr. Patrice Mann said the holiday blues are due to several factors. They include social pressures, disruptive routines and financial strain.
“Things like having a bunch of holiday events on the calendar, not to say we don’t look forward to them oftentimes, but they take a toll on us,” says Dr. Mann. “You’re up late, interacting with a lot of people, and that’s not everyone’s nature.”
Grief and seasonal depression can also complicate these feelings. According to the National Institute of Mental Health, seasonal depression affects millions of Americans every year, but many may not even realize they have it.
Symptoms of holiday blues and seasonal depression can include a persistent low mood, loss of interest in activities and changes in eating or sleeping habits. If these symptoms last more than two weeks, Dr. Mann said it could indicate a more serious depressive episode. In such cases, seeking professional help is important.
Dr. Mann recommended several self-care strategies to help manage both the holiday blues and seasonal depression. She suggested getting tested for vitamin D deficiency and taking supplements during winter. Vitamin D plays a vital role in mood and energy levels.
She also advised getting as much sunlight as possible during the shorter winter days. Light therapy boxes can mimic outdoor sunlight if natural sunlight isn’t available. Using them for 20 to 30 minutes in the morning can help trick the brain and improve mood.
For those experiencing grief during the holidays, Dr. Mann encouraged reflecting on personal needs and communicating with trusted friends or family members. She also recommended incorporating new social activities into your routine and checking in with yourself after attending events.
For those supporting others through grief, it’s important to recognize that everyone processes emotions differently. Dr. Mann suggested engaging in activities with those less open about mental health, such as cooking or playing games, to help create a comfortable environment for them to express themselves.
While the holiday season brings unique challenges, small steps can make a big difference. Prioritizing self-care, maintaining routines and reaching out for support are important practices to help manage holiday stress.
If you or someone you know is struggling, remember that professional help is available. The National Suicide Hotline is available 24 hours a day by calling 988.
Dow Jones snapping worst losing streak in 50 years
After the worst losing streak in 50 years, the stock market is looking to snap back Thursday, Dec. 19. The Dow Jones Industrial Average’s 10-day losing streak through Wednesday, Dec. 18, is the longest since 1974.
During the losing streak, the market wiped out all of its post-election gains. The Dow ended Wednesday down 2.5% from when President-elect Donald Trump won the election.
Also on Wednesday, Wall Street’s fear gauge, the CBOE Volatility Index, had its second-biggest percentage spike in history. The VIX shot up 74% after the Federal Reserve shared its outlook for the coming year.
Usually, when the Fed does what markets expect, investors take the news in stride. On Wednesday, the Fed cut its benchmark interest rate for a third time in 2024, which was widely predicted. But it was what came next that spooked investors.
“It was all but a known fact that they were going to do it,” Aaron Cirksena, CEO and founder of MDRN Capital, said. “I think when Jerome Powell says that they were starting to get on the cusp of whether it was the right decision or not, that’s really him using some leading language into next year, to just preface that, look, you’ve got to have some caution, that they might not be willing to just go into next year full steam saying, yes, we’re definitely going to be lowering every time we sit down another six to eight times next year.”
“I think at one point three months or so ago, that was kind of the assumption heading into 2025,” Cirksena continued. “I think now that’s starting to just get pulled back a little bit.”
The Fed went from projecting four cuts in 2025 to now projecting just two. They also expect inflation to be higher next year than previously forecast, which directly translates to a higher-for-longer interest rate policy.
As of Thursday, Dec. 19, the probability market isn’t favoring another Fed cut until May.
Wednesday marked the worst performance on record for the S&P 500 during a Fed interest rate announcement day, according to Bespoke Investment Group. But the biggest market losses since the election are more isolated to the Dow.
If you zoom out for the bigger picture, the entire market’s up double digits on the year. The tech-heavy Nasdaq has the highest gains, followed by the S&P 500 and then the Dow Jones.
Stock market soars to records on Trump election victory
The Trump trade is back on and bigger than ever. The stock market surged to record highs Wednesday morning, Nov. 6, on news former President Donald Trump is now president-elect.
The Dow Jones soared up 1,300 points, around 3%, to start the day. Trump Media, which trades like a meme stock on Trump’s political momentum, opened the day 30% higher.
Trump isnt the only one with the largest share of a public company seeing a spike.
“We have a new star. A star is born. Elon,” Trump said when celebrating his victory.
Tesla also got a big Trump bounce, popping about 13% to start the trading day. It’s expected CEO Elon Musk will play a big role in Trump’s administration.
“I will create a government efficiency commission tasked with conducting a complete financial and performance audit of the entire federal government and making recommendations for drastic reforms,” Trump said in September. “And Elon, because he’s not very busy, has agreed to head that task force.”
Musk spent over $100 million on Trump’s campaign through his America PAC. That included the million-dollar daily giveaways he issued through the campaign’s final weeks.
Musk posted on his social platform X, “America is a nation of builders. Soon, you will be free to build.”
The stock market bounce comes in part from the expectations the Trump administration will mean fewer regulations and lower taxes. Also riding Trump’s victory coattails is the dollar. It surged as other major currencies like the euro fell.
Like the dollar, cryptocurrencies are on the rise.
“We have the first Bitcoin president,” Anthony Pompliano told CNBC. “President Trump ran on a campaign point that he was going to protect Bitcoin, he was going to create a Bitcoin strategic reserve, and I think you saw Bitcoin’s price reflect having somebody who was so pro-Bitcoin win the White House.”
Bitcoin traded around $75,000 in the early morning hours.
Along with foreign currencies, other “losers” of the Trump trade are green energy companies and shipping companies.
The prime piece of his economic platform is tariffs, of which shipping companies could be on the losing end of a trade war.
Trump has said revenues from widespread tariffs will not only bring production back to the U.S. but also reduce the deficit, even as he pledges to cut tax revenues.
“It will be a certain tariff percentage, which will be higher than people had heard in the past, and we will be bringing in billions and billions of dollars, which will directly reduce our deficits,” Trump said in September.
The question as Trump’s new term comes into focus is how many of his campaign pledges will be fully realized, especially with certain advisers in play. When Trump raised tariffs on China during his first term, Elon Musk’s Tesla was one of thousands of companies to sue his administration.
This time around, Trump has said tariffs on China will be 60% or more. But China is very important to Tesla’s business. Will Musk’s influence lead to a softer stance?
“This is what I call the silly season. Lots of promises are made,” former Comptroller General David M. Walker told Straight Arrow News. “I think what’s more realistic is you could see selected imposition of tariffs on certain goods from certain countries in order to try to help level the playing field and in order to try to help promote more domestic jobs. But you’re not going to see, I think, across-the-board approaches, and you’re not going to see a fundamental shift away from our historical revenue sources, because the gap is just too great.”
For now, all independent analyses have to go on are those promises made, in which case, the right-of-center Tax Foundation says Trump’s collection of tax cuts and tariff increases will reduce the nation’s revenues by $3 trillion over the next decade.
To get a historical look at Trump’s proposal to replace the income tax with tariffs, click here.
Overreaction or rational? Here’s why the US stock market plunged Monday.
Investors slammed the sell button the morning of Monday, Aug. 5, with the Dow Jones Industrial Average sliding more than 1,000 points before the opening bell. The tech-heavy Nasdaq lost 6% while the S&P 500 was down more than 4% before the stock market opened.
The global sell-off started overseas in Japan with the Nikkei index having its worst day since 1987’s Black Monday crash. On Monday, the Nikkei plunged 12.4%.
It was Tokyo traders’ first chance to react to Friday’s U.S. jobs report, where unemployment unexpectedly spiked to 4.3%, triggering a U.S. recession indicator.
Japan’s rout was contagious and U.S. markets slid further Monday than their own initial reaction Friday, when the S&P fell 1.8%. On Monday, the market’s “fear index” surged to levels not seen since spring of 2020.
There is no doubt the sell-off is sparked by recession concerns from the jobs report and worries the Federal Reserve is way behind the eight ball when it comes to cutting rates.
“The Federal Reserve is at real risk of missing the boat, of being too late to the game when it comes to making sure that jobs continue to grow and that workers have good opportunities in the labor market,” former Acting and Deputy Labor Secretary Seth Harris told Straight Arrow News on Friday.
“We’re beginning to hear from folks on Wall Street, the R word, the discussion of recession,” Harris said. “Now, I don’t think that this report tells us that we’re headed for recession. But as folks on Wall Street begin to start talking about it, that can become a downward spiral as it becomes a decision-making point for businesses.”
“If you think that we’re going to shrink – if the economy is going to slow and shrink – you don’t invest in hiring people, you don’t invest in capital equipment, you don’t invest in expansion, you don’t invest in inventories,” Harris continued. “And so that is the concern.”
In the case Harris describes, negative conditions can become a self-fulfilling prophecy. Will cooler heads prevail? Many assessments of Monday’s sell-offs are that it is an overreaction to the data. But it is not just the labor market and Fed actions feeding into it.
For some time, investors worried tech stocks are overinflated this year, and over the weekend, Warren Buffett’s Berkshire Hathaway announced it sold nearly half its Apple stock in the second quarter. Apple started the day down 8% and dragged down Nvidia and other tech stocks with it.
Bitcoin also fell from around $62,000 Friday night to briefly under $50,000 Monday morning.
“Bitcoin doesn’t look like The New Gold,” Bloomberg Reporter Joe Weisenthal wrote. “It looks like 3 tech stocks in a trenchcoat.”
