Bloomberg News Now: Stocks Rebound, Harvard Enrollment Ban, Tax Bill, and FDA Budget

Market Performance

• 📈 Stocks staged a cautious comeback after a Treasury sell-off, with the S&P 500 down two and a half points, Nasdaq gaining 53 points, and the Dow down one point.
• 📊 The ten-year Treasury yield is at 4.53%, and the two-year yield is at 3.99%.

Harvard Enrollment and Supreme Court Decision

• 🚫 The Trump administration has informed Harvard University that it cannot enroll international students, a significant blow following a freeze on federal funding.
• ⚠️ Existing foreign students at Harvard are required to transfer or risk losing their legal status, with Homeland Security Secretary Kristi Noem citing an unsafe campus environment.
• ⚖️ The Supreme Court, divided 4-4, declined to allow state funding for religious charter schools, leaving an Oklahoma Supreme Court ruling intact that rejected a Catholic virtual school.

Legislative and Commission Updates

• 💰 House Republicans passed President Trump's tax and spend bill, awaiting Senate action.
• 🗣️ Senator Lindsey Graham commented on House Freedom Caucus members urging the Senate not to dilute spending cuts, noting that some cuts are not substantial.
• 🍎 The Make America Healthy Again Commission, led by HHS Secretary Robert F Kennedy Jr., released its first report, assessing health problems and knowledge gaps.
• 🏭 The commission's report raises concerns about processed foods, vaccines, overmedication, pesticides, and lifestyle habits, while accusing corporations of influencing decisions.

FDA and Tech Investigations

• 💰 The FDA is requesting $6.8 billion for its fiscal year 2026 budget, with the chief defending staff reductions and emphasizing no impact on approval schedules or scientific reviews.
• 🔬 The FDA chief highlighted progress in removing petroleum-based food dyes, eliminating animal testing for drugs, and approving a new Alzheimer's blood test.
• 🔍 The Justice Department is investigating Google for potentially breaking the law by acquiring Character AI's technology and integrating its founders.
• 💻 Google, Microsoft, and Amazon have all made similar acquisitions of AI startups, with Google acquiring Character AI, Microsoft acquiring Inflexion, and Amazon acquiring ADAPT.

Economic Outlook and Interest Rates

• 🏦 Central banks have maintained benchmark interest rates this year due to a solid economy and uncertainty surrounding President Trump's tariff policies.
• 📉 Morgan Stanley's chief U.S. equity strategist anticipates a positive rate of change and eventual interest rate cuts, projecting seven cuts for the next year with no recession.