Key Takeaways
- President Trump is expected to nominate Kevin Warsh as Federal Reserve chair, signaling a potential policy shift.
- A tentative deal to avert a US government shutdown was reached, but legislative hurdles remain.
- Major tech companies reported earnings, with Apple's record sales and Microsoft's AI spending-related stock drop.
- Elon Musk is reportedly exploring a merger of SpaceX with Tesla or XAI ahead of a potential IPO.
Deep Dive
- President Trump is expected to nominate Kevin Warsh, a former Fed governor, as the next Federal Reserve chair.
- Warsh's potential nomination could signal less support for interest rate cuts.
- The selection is not final until Trump makes a formal announcement, following Warsh's visit to the White House on Thursday.
- Apple reported record quarterly sales, totaling $85 billion, and a better-than-expected forecast, but warned of rising component costs.
- Microsoft shares fell 10%, representing a $357 billion drop, due to record AI spending and slowing cloud growth.
- Microsoft finalized a $750 million deal with AI startup Perplexity, while Sandisk shares climbed 20% after surpassing analyst estimates.
- Elon Musk is reportedly considering a merger of SpaceX with either Tesla or his AI firm XAI.
- This potential move is being explored ahead of SpaceX's targeted June IPO, which could value the company at $1.5 trillion.
- The merger could attract significant infrastructure and sovereign investors.
- An Illinois former sheriff's deputy, Sean Grayson, received a 20-year sentence for the second-degree murder of Soni Massey in a 2024 incident.
- In Minnesota, a man is charged with impersonating an FBI agent to free an accused killer.
- Fulton County, Georgia, officials plan to contest an FBI raid of 2020 election materials, with the FBI Director stating a judge found probable cause.
- Bloomberg News correspondent Michael McKee indicates that Kevin Warsh's potential nomination could lead to significant changes at the Federal Reserve.
- Warsh has been critical of the Fed's expanded role, advocating for a smaller balance sheet and less communication from the institution.
- The confirmation process includes Senate hearings, with Senator Tom Tillis's vote reportedly contingent on withdrawing subpoenas issued to Jay Powell.
- Microsoft shares dropped 10%, leading to a $357 billion valuation decrease, due to investor concerns over Azure growth clarity and capital expenditure for AI.
- Analysts Dan Ives and Gene Munster suggest this intense scrutiny on AI monetization will likely impact other major tech giants.
- Amazon's upcoming earnings are anticipated to show strong performance from its AWS cloud service, with its stock potentially undervalued.