Good morning.
Boomers told BI they are
preparing for the worst
as they worry about what cuts to the Social Security Administration could mean for their benefits and access to resources. "All I can do is cross my fingers and hope," one said.
A $4 trillion swing. An entry into bear-market territory. A new tariff threat.
Yesterday was a wild day for Wall Street.
The S&P 500 fell as much as 4.7% into the bear-market zone before briefly spiking on a tariff-suspension report the White House called "
fake news
."
Roughly $4 trillion in market value was added to the index in 34 minutes because of the report. Then the "fake news" designation sent the market back down.
The move demonstrated just how desperate investors were for relief from a relentless
three-day stock rout
.
The S&P 500 ended the day above bear-market territory, but markets aren't out of the woods yet.
The US and China could be heading for a long standoff in their trade war, risking collateral damage for economies and markets the world over,
BI's Huileng Tan writes
.
On Monday, Trump hit China with a fresh threat of an additional
50% in tariffs
— on top of a total 54% he announced since taking office — if Beijing doesn't withdraw the
retaliatory tariffs
it announced on Friday.
China's Commerce Ministry called Trump's latest threat "a mistake on top of a mistake."
"If the US insists on its own way, China will
fight to the end
," said a ministry spokesperson.
3 things in markets
1. Billionaires are turning on Trump over tariffs.
The ultrawealthy were bullish on Trump around election season, but now they're souring on him after seeing trillions wiped from the stock market. They've seen their net worths plummet during the sell-off — and
they've had enough
.
2. Larry Fink says the recession might already be here.
The BlackRock commander-in-chief said most CEOs in his orbit agree that we're "
probably in a recession right now
." But he doesn't think you should sell your stocks just yet.
3. Tesla's latest plunge has proved Trump's commerce secretary wrong.
Last month, Howard Lutnick said a $235 share price was the lowest Tesla would ever go and that they'd "never be this cheap again." Shares on Monday
dropped as low as $214
.
3 things in tech
1. The face-tech market just ain't happening.
Big Tech companies like Apple and Meta keep betting on face computers like AR and VR goggles, even though customers don't seem to be interested. This year, the
market for face tech
might even shrink — but Meta's still optimistic.
2. A logistics giant is turning its warehouses into robot testing labs.
GXO is betting big on the next frontier of physical AI, putting
humanoid robots
from three different firms to work in its warehouses. GXO's chief automation officer said the tech could theoretically complete multiple tasks in the future.
3. Trump tariffs are all about Taiwan.
Tariffs are Trump's attempt to shift the global economy away from Chinese manufacturing. That's because Taiwan, home to TSMC, is at the heart of global supply chains.
If China invades
Taiwan, the economic shock could make last week look tame.
3 things in business
1. The next big loser in Trump's beef with Canada.
Canadian investors have put some $184 billion in US commercial real estate over the last decade. Some are wealthy pension funds such as Oxford Properties Group, a partner in Hudson Yards. Trump's punitive tariffs are endangering the pipeline of
steady Canadian cash
to those projects.
2. The Okta CEO's hot take on the job market for software engineers.
Even as AI shakes up the field, Todd McKinnon expects more demand for software engineers in the next five years, not less.
Here's why
.
3. DOGE's targets in its consultancy crackdown.
From DEI to energy-related contracts, BI analyzed five
government contracts DOGE has axed
. It shows a major realignment in how the federal government is working with consultants.
In other news
What's happening today
The Insider Today team:
Dan DeFrancesco, deputy editor and anchor, in New York (on parental leave). Hallam Bullock, senior editor, in London. Nathan Rennolds, editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago.
