Good morning. Vice President JD Vance has recently sold his home near Washington, DC, for $172,000 above the asking price in less than three weeks. The buyer turned out to be a former Trump official.
In today’s main story, investors find themselves in a surprising position as they contend with President Donald Trump, with the stock market experiencing its worst quarter in three years.
What’s on deck
Markets: BlackRock CEO Larry Fink focuses on private markets.
Tech: YouTube is poised to surpass Disney in the media landscape.
Business: Paris offers a potential solution to America’s affordable housing issue.
However, Wall Street may face more challenges soon.
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The big story
Wall Street Faces Uncertainty
Jennifer Sor/BI
Investors have realized that Trump may not be favoring their interests.
The stock market saw its worst performance since 2022 on Monday.
Following a period of significant growth, the recent downturn has caught many by surprise with Trump’s unexpected actions since his return to the White House.
It appears that Trump is no longer seen as a market ally, with the White House indicating a shift in priorities, as noted by BI’s Jennifer Sor.
“Wall Street’s done great, Wall Street can continue to do fine, but we have a focus on small business and consumers,” the Treasury secretary mentioned last month. Instead of concentrating on stock prices, the administration is prioritizing the 10-year Treasury yield to ease borrowing costs.
Meanwhile, Trump’s tariff policies have amplified inflation and recession concerns. Consumer sentiment has reached its lowest point in years, and CEO confidence is declining, making future planning challenging.
Investors should brace for another challenging quarter.
Once-optimistic investors are now approaching the second quarter with caution.
“The expected fallout from Trump 2.0’s Reign of Tariffs undercuts our former bullishness and dims the prospects of our base-case Roaring 2020s scenario for now,” veteran analyst Ed Yardeni commented, adjusting his S&P 500 year-end prediction from 6,400 to 6,100.
In parallel, Goldman Sachs reduced its three-month forecast for the index to 5,300, signaling a potential 5% decline from current levels.
As Trump’s “Liberation Day” approaches, investors are anxiously awaiting a series of reciprocal tariffs on US trading partners. Deutsche Bank has identified three significant risks to monitor in the upcoming quarter.
3 things in markets
John Nacion/Getty Images
1. Floyd Mayweather’s real estate claims lack evidence. The retired boxing star claimed a $400 million acquisition of 62 Manhattan apartment buildings, but there’s no proof of such a sale a month later.
2. CEO Larry Fink envisions a transformation at BlackRock. After a long-standing presence in liquid markets, BlackRock is now heavily investing in private markets. In his annual letter, Fink discussed focusing on a “$68 trillion boom” in infrastructure.
3. Newsmax experiences a significant stock surge. The conservative media company’s stock market debut saw a 700% increase, valuing Newsmax at around $8 billion, doubling Trump Media’s valuation and a third of Fox Corp.’s.
3 things in tech
YouTube; Disney; Tyler Le/BI
1. YouTube poised to surpass Disney as the top media company. Generating $54.2 billion in revenue in 2024, YouTube is rapidly closing in on Disney’s lead, according to analyst Michael Nathanson. Nevertheless, many still underestimate YouTube’s scale, writes BI’s Peter Kafka.
2. Elon Musk’s supercomputer project faces power challenges. xAI is investing $400 million in creating the world’s largest supercomputer in Memphis, Tennessee, but lacks adequate power to operate it.
3. Tumblr is becoming a refuge for Gen Z. Millennials might be surprised, but Gen Z is rediscovering Tumblr as a safe space, amidst dissatisfaction with platforms run by Musk and Zuckerberg. Whether they’ll stay remains to be seen.
3 things in business
Nic Antaya for Business Insider
1. Tesla’s cautionary message to sales staff amidst protests. In a video sent before recent protests, Tesla advised employees to remain alert in a dynamic environment. The video showcased cheerful staff and promo clips but omitted direct protest references, which some employees found “trivial” and “disappointing.”
2. Adopting French urban planning could address US housing affordability. Paris’ 19th-century redesign managed high population density and aesthetic appeal. Emulating such zoning could help US cities reduce housing costs and enhance aesthetics simultaneously.
3. Luxury brands like Gucci may soon advertise on Fox News. Conservative media outlets report an increase in advertising from major brands, reflecting a shift in perception and differing from past boycotts during Trump’s initial term.
In other news
What’s happening today
- Wisconsin Supreme Court election. Elon Musk has invested over $20 million backing the conservative candidate.
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Forbes’ World Billionaires List of the world’s wealthiest individuals is announced.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York (on parental leave). Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Meghan Morris, deputy bureau chief, in Singapore. Elizabeth Casolo, fellow, in Chicago.
