Bloomberg News Now: Trump-Musk Talks, Treasury Tax Plan, China Trade, and Geopolitical Tensions

Market Performance and Economic Indicators

• 📉 The S&P 500 narrowly missed an all-time high before a selloff in big tech stocks, closing down 17 points.
• 📈 The NASDAQ fell 99 points, while the Dow Jones Industrial Average lost a fraction of a point.
• 📊 The ten-year Treasury yield stood at 4.41%, and the two-year yield was at 3.94%.
• 💡 Underlying U.S. inflation rose by a tenth of a percent in May, suggesting companies are absorbing tariff costs.

Treasury Department Policy Proposals

• 🏛️ The Treasury Department is considering revoking tax-exempt status for colleges that consider race in admissions or offer race-based financial aid.
• 🎯 These proposals would affect private, nonprofit schools that favor any racial groups for scholarships or other programs.

Political Developments and International Relations

• 🤝 President Trump indicated a potential reconciliation with Elon Musk, following a public dispute over Trump's tax bill.
• 🗣️ Musk reportedly called Trump, and they spoke on Monday night; Musk has expressed regret for some past posts.
• 🇨🇳 Treasury Secretary Scott Bessant discussed trade talks with China, emphasizing the need for China to shift from excess production to greater consumption to stabilize its economy.
• 🌍 Bessant expects the U.S. to hit the debt ceiling in the middle to late summer, calling it a moving target.
• 🇺🇸 Defense Secretary Pete Hegseth testified about major global threats, including China's potential actions toward Taiwan and Russia's actions in Ukraine.
• 🚨 The Trump administration is reducing embassy staff in Iraq and allowing military families to leave due to ongoing security concerns.

Social Unrest and Legal Proceedings

• ✊ Protests against immigration raids continued for a fifth night in Los Angeles and spread to other cities, including Chicago, New York, and Atlanta.
• ⚖️ California Governor Gavin Newsom accused President Trump of misusing power regarding troop mobilization in Los Angeles.
• 🎤 Harvey Weinstein was convicted of sexual assault in New York for a second time, though acquitted of another charge, with deliberations ongoing for a rape charge.

Cultural News

• 🎶 Brian Wilson, the founder and creative force behind The Beach Boys, has died at the age of 82.