🔔 Opening Bell: NATO Allies Agree to Boost Military Spending to 5%

Jun 26, 2025

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On Wednesday, the S&P 500 closed at 6.092.16, down 0.18%, while the NASDAQ was down 0.18%, closing at 19,973.55. The Dow Jones Industrial Average closed the session at 42,982.43, down 0.31%.

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Headlines

NATO Allies Agree to Boost Military Spending to 5% After Trump's Pressure

European allies have agreed to a substantial increase in military spending, targeting 5% of their national income by 2035. This new commitment includes 3.5% for traditional military needs and an additional 1.5% for militarily adjacent projects such as infrastructure and cybersecurity. The decision came during a one-day summit in the Netherlands, marking a dramatic increase from the current 2% target.

The summit proved particularly successful in securing President Trump's public commitment to NATO's collective defense under Article 5, despite his previous reluctance. "This was a tremendous summit, and I enjoyed it very much," Trump stated at the concluding news conference, acknowledging America's crucial role in European defense. The agreement represents a major victory for Trump's long-standing demand for NATO allies to increase their defense contributions, while simultaneously reinforcing the alliance's collective defense commitment.

Source: The New York Times

Early Intelligence Suggests Iran's Uranium Largely Intact

Recent intelligence assessments from European officials indicate that Iran's stockpile of highly enriched uranium has remained largely unaffected by Israel's recent aerial attack on Isfahan. The strike, which targeted a military facility near Iran's uranium conversion site, appears to have caused minimal damage to Iran's nuclear infrastructure.

Western intelligence sources, speaking on condition of anonymity, revealed that while the attack demonstrated Israel's capability to breach Iranian airspace, it did not significantly impact Iran's nuclear program. "The strike was more symbolic than destructive," stated one senior European intelligence official, emphasizing that the attack's primary achievement may have been psychological rather than material.

Source: Financial Times

A Battery of New Data Shows How the US Economy Is Holding Up Amid Trump's Tariffs

The US economy showed mixed signals in the latest economic data release, with GDP declining at an annualized rate of -0.5% in Q1 2025, worse than previously estimated. Consumer spending grew at just 0.5%, the weakest rate in over four years, while unemployment benefits claims reached their highest level since November 2021. However, there were some positive indicators, with durable goods orders surging 16.4% and business investment showing signs of recovery.

San Francisco Federal Reserve President Mary Daly provided insight into the labor market situation, stating: "The data today confirmed that continuing claims are going up because it takes a little longer to find a job. That's consistent with the hiring numbers just being slower as the economy comes to a more sustainable pace." Despite the challenges, businesses continue to invest and adapt to the changing tariff environment, though uncertainty remains about the Federal Reserve's next moves regarding interest rates.

Source: CNN

Ursula von der Leyen Faces No-Confidence Vote Over Pfizergate

The European Commission President Ursula von der Leyen is confronting a political challenge as she faces a no-confidence vote related to the controversial "Pfizergate" affair. The situation stems from questions surrounding the EU's Covid-19 vaccine procurement process and specifically the negotiations with Pfizer during the pandemic.

The controversy has intensified following revelations about text messages exchanged between von der Leyen and Pfizer CEO Albert Bourla during vaccine negotiations, which have raised transparency concerns among EU lawmakers and watchdogs. The European Parliament's decision to proceed with a no-confidence vote marks a crucial moment in EU politics, highlighting the ongoing debate about accountability in major public health decisions.

Source: Financial Times

Fears Over US Debt Load and Inflation Ignite Exodus from Long-term Bonds

The U.S. bond market is experiencing turbulence as investors increasingly withdraw from long-term government securities, driven by mounting concerns over the nation's expanding debt burden and persistent inflation pressures. The Treasury market has seen unprecedented volatility, with investors particularly wary of longer-dated bonds due to uncertainty about the government's fiscal trajectory and monetary policy outlook.

Market sentiment has been heavily influenced by the Treasury Department's massive borrowing needs and the Federal Reserve's monetary policy stance. "The market is really struggling with the long end. There's just no natural buyer," noted Rick Rieder, BlackRock's Chief Investment Officer of Global Fixed Income, highlighting the growing hesitation among investors to commit to long-term government debt instruments amid rising economic uncertainties.

Source: Financial Times

US Goods Exports Tumble by Most Since 2020 as Trump's Tariffs Disrupt Trade

The United States experienced a downturn in goods exports, marking the steepest decline since 2020, largely attributed to the ongoing impact of trade policies implemented during the Trump administration. The disruption in international trade flows has created ripple effects across various sectors of the American economy, with manufacturers and agricultural producers particularly affected by the tariff-induced market distortions.

The decline in exports highlights the complex interplay between protectionist trade policies and global commerce, as businesses continue to navigate the challenges of increased costs and market access restrictions. The situation has prompted concerns among economists and industry leaders about the long-term implications for U.S. trade relationships and economic growth, especially as global markets continue to evolve in response to changing trade dynamics.

Source: Financial Times

The S&P 500 Is Taking a $9.8 Trillion Roundtrip

The S&P 500 is experiencing a remarkable recovery, approaching record highs after a tumultuous period earlier in the year. The benchmark index has surged 22% since its April 8 low, poised to recover $9.8 trillion in market value. The impressive comeback follows a challenging period where the index had dropped 18.9% from its February peak due to trade policy uncertainties.

Market sentiment appears cautiously optimistic, with Paul Stanley, chief investment officer at Granite Bay Wealth Management, noting: "The market is betting on continued progress on trade and a de-escalation of tensions in the Middle East is giving investors confidence." The recovery comes amid significant developments, including potential changes in Fed leadership and ongoing trade negotiations, while the US dollar has weakened to a three-year low, partly due to concerns about the Federal Reserve's independence.

Source: CNN Business

Dollar Falls to Three-Year Low After Report Trump May Name Next Fed Chair Early

The US dollar has plummeted to its lowest level in three years following reports that President Donald Trump is considering an early announcement of Jerome Powell's successor as Federal Reserve chair. This unprecedented move, potentially coming months ahead of the traditional timeline, has sent ripples through the currency markets, with the dollar declining 0.5% against a basket of major currencies.

The tension between Trump and Powell has been a major factor in this development, with Trump repeatedly criticizing Powell's leadership at the Fed. "He's a political guy who's not a smart person, but he's costing the country a fortune," Trump stated about Powell. The potential candidates for the position include former Fed governor Kevin Warsh, National Economic Council director Kevin Hassett, and Treasury Secretary Scott Bessent, with Trump confirming at a NATO summit that he has narrowed his choice to "three or four people."

Source: The Guardian

Xbox Layoffs Rumored to Remove Up to 2K Employees, Studio Closures a Possibility

Microsoft's gaming division is facing another potential round of restructuring, with industry insiders suggesting up to 2,000 Xbox employees could be affected by upcoming layoffs. The restructuring is expected to impact various teams across Xbox, including recently acquired Activision Blizzard and Bethesda divisions, representing approximately 10% of the gaming workforce.

George Broussard, co-founder of Apogee Software, shared these concerning developments, stating that studio closures might also be on the horizon. This follows Microsoft's previous layoff patterns, including the January 2023 cut of 10,000 jobs across divisions and the removal of 1,900 employees from Xbox and Activision Blizzard King teams earlier this year. The announcement is expected by the end of the week, coinciding with Microsoft's financial quarter ending on June 30.

Source: GamingRumor

Samsung Offering as Much as $300K to Sales Executives to Scoop US Chip Orders Away from TSMC

Samsung is making aggressive moves to strengthen its position in the US semiconductor market, particularly focusing on its new chip manufacturing plant in Taylor, Texas. The Korean tech giant is offering substantial compensation packages to attract top sales talent, with foundry sales director positions commanding salaries between $200,000 and $319,800. This strategic hiring initiative comes as Samsung aims to compete more effectively with TSMC, which has already begun producing 4-nanometer chips at its Arizona facility for major clients like Apple and NVIDIA.

The salary offerings represent a significant premium compared to similar positions in South Korea, highlighting Samsung's determination to establish a stronger presence in the US market. The company's Taylor facility is scheduled to begin mass production in 2026, focusing on advanced 2-nanometer chip manufacturing processes. This expansion comes at a crucial time when the US government is pushing to bring leading-edge semiconductor fabrication onshore, though Samsung faces the challenge of competing with TSMC's established reputation and superior yield rates in advanced chip production.

Source: FinanceSemiconductor