US Stocks Hit Record Highs Amid Fed Renovation Review and Geopolitical Tensions

Federal Reserve Renovation Controversy

• 🏛️ Treasury Secretary Scott Bessent called for a review of the Federal Reserve headquarters' renovation, citing "significant mission creep" and potential jeopardy to its core monetary policy.
• ⚠️ Bessent also urged an internal review of the Fed's non-monetary policy operations, a move seen as part of the Trump administration's ongoing criticism of Fed Chair Jerome Powell.
• ⚖️ Congresswoman Anna Paulina Luna has called for a criminal referral for Powell over alleged misleading testimony regarding renovation cost overruns, though legal experts deem this unserious.

US Equity Market Performance

• 📈 US stocks continue to reach new all-time highs, with the S&P 500 closing at a record level.
• 🚀 Christopher Harvey, Wells Fargo's top US equity strategist, forecasts a double-digit increase for the S&P 500 in the second half of the year, driven by AI and strong fundamentals.
• 🌍 Major asset managers are increasing their bullish bets on risk assets, including technology shares and emerging market assets, anticipating a de-escalation of trade and geopolitical tensions.

Corporate Earnings and Trade

• 🚗 General Motors is expected to report increased vehicle sales and market share, with a significant impact from tariffs on imported cars and auto parts.
• 🚢 Japan's chief trade negotiator met with US Commerce Secretary Howard Lutnick as an August 1st deadline for higher tariffs looms.

Cybersecurity and Corporate Travel

• 💻 Microsoft is working to fix a vulnerability in its SharePoint software that was exploited to breach government systems in Europe, the Middle East, and the US.
• ✈️ BlackRock is restricting the use of company devices in China due to growing jitters around business travel and US-China geopolitical tensions.

Political and Legal Developments

• ⚖️ The Jeffrey Epstein case has stalled legislative business on Capitol Hill, with Democrats demanding the release of files, potentially leading to an early summer recess for the House.
• 📰 The White House will remove the Wall Street Journal from President Trump's travel group due to a report about Epstein.
• 📰 Billionaire Patrick Soon-Shiong plans to take the Los Angeles Times public within the next year.
• 🎤 Stephen Colbert addressed the cancellation of his show, criticizing CBS and President Trump.
• 👮 A former Kentucky police officer was sentenced to 33 months in prison for excessive force during the Brianna Taylor raid.
• ⚖️ Former NYPD interim police commissioner Thomas Donlon filed a $10 million defamation claim against Mayor Eric Adams.
• 🇺🇸 US Marines are departing Los Angeles after over a month, with Mayor Bass prioritizing National Guard support for fire season.
• 🎭 Actor Malcolm-Jamal Warner died in an accidental drowning.