Bloomberg News Now: Market Gains, Immigration Policy, Fed Chair Prospects, and Meta's AI Push

Market Performance and Trade Talks

• 📈 The S&P 500, NASDAQ, and Dow all saw gains, with the S&P 500 rising 33 points, NASDAQ 124, and the Dow 105.
• 📊 The ten-year Treasury yield closed at 4.46%, and the two-year yield at 4%.
• 🤝 U.S.-China trade negotiations are progressing well, with Secretary of Commerce Howard Lutnick indicating they could continue for a third day to reestablish terms of a previous agreement, including rare earth shipments.

Federal Reserve Chair Prospects

• 🏦 Treasury Secretary Scott Bessant is a top contender to replace Jay Powell as the next chair of the Federal Reserve, with President Trump expected to name a successor soon.
• 🗓️ Powell's term ends in May 2026, and Bessant is scheduled for a budget hearing on Capitol Hill.

Immigration Enforcement and Legal Challenges

• ⚖️ California Governor Gavin Newsom filed an emergency motion to block the Trump administration from using the National Guard and Marines for immigration raids in Los Angeles.
• 🚨 Newsom suggested this deployment could be part of a broader immigration crackdown, calling it "blatantly unconstitutional."
• 💥 President Trump indicated that Los Angeles is just the beginning and warned of force against protesters at his upcoming military parade.
• 💰 The Pentagon stated that deploying National Guard and Marines to protests in Los Angeles will cost $134 million.

FEMA and University Funding

• 🌪️ President Trump plans to wind down much of FEMA after hurricane season, aiming to increase state-level responsibility for emergency responses.
• 🎓 Education Secretary Linda McMahon suggested that Harvard and other universities could have federal funding restored if they change policies and abide by U.S. laws, noting Harvard's response to funding freezes with lawsuits.

Middle East Policy and Meta's AI Ambitions

• 🇵🇸 The U.S. ambassador to Israel stated that the U.S. no longer wholeheartedly endorses an independent Palestinian state, suggesting it could be located elsewhere in the region.
• 🎯 The ambassador placed blame for the Israel-Hamas war solely on Hamas and stated the conflict can only end with the release of hostages.
• 🧠 Meta CEO Mark Zuckerberg has assembled a "super intelligence Group" to achieve artificial general intelligence (AGI), leveraging Meta's financial resources for AI infrastructure.