Hey there!
Wall Street kicked off the week with confidence. AI stocks are still the market’s backbone, earnings are rolling in with strength, and a major trade agreement gave risk assets another boost. But beneath the rally, Tesla is fighting for narrative control, and crypto is caught in another round of Washington crossfire.
Here’s what you need to know.
The Big Headlines
Markets opened green after a new U.S.–EU trade deal
President Trump and EU leaders agreed to cap tariffs at 15%, defusing concerns of another transatlantic trade war. The S&P 500 and Nasdaq futures responded quickly, extending last week’s gains and setting the tone for what could be a pivotal earnings stretch.
Tesla just inked a $16.5B chip deal with Samsung
The agreement covers next-generation AI hardware for Tesla’s self-driving systems and robotaxis. After two quarters of disappointing guidance and evaporating EV subsidies, this partnership gives Tesla bulls something concrete to point to. The market approved shares opened up over 2%.
But the deal also raises expectations. Hardware execution, once a strength, has recently lagged behind Tesla’s storytelling. Investors will now be watching Samsung just as closely as Elon.
AI earnings are in focus all week
Nvidia, AMD, Microsoft, Alphabet, Amazon, and Meta all report within the next few days. Traders are bracing for any slowdown in enterprise AI spending, but so far, the tone is bullish. Google Cloud's AI unit released new Gemini integrations ahead of earnings, and Microsoft is expected to announce further expansion of its Copilot suite for enterprise clients.
🪙 Crypto Corner
Bitcoin held steady near $118K, but momentum is shaky. Ethereum dropped 2% as the SEC once again delayed its decision on several ETH ETF proposals. Meanwhile, Ripple (XRP) fell sharply after a federal court granted the SEC expanded discovery rights in its long-running case. That ruling raised fresh questions about how crypto assets will be categorized if the Senate’s new regulatory bill passes.
The crypto space isn’t collapsing, but it’s on hold. With three different bills floating in Congress and no clarity from regulators, the dominant trend is hesitation.
💬 Final Word
This week is a test for conviction. AI still has room to run if earnings impress. Tesla is trying to reclaim momentum with hard infrastructure bets. Crypto, once again, is hoping regulation doesn’t outpace innovation.
Keep watching the story behind the numbers. That’s where the money moves first.