Elon Musk's Tesla problem just got worse

Early market activity shows a slight uptick in Dow futures following solid earnings reports from Goldman Sachs and Johnson & Johnson. However, ASML, a key player in semiconductor manufacturing equipment, saw its shares dip after cautioning that growth in 2026 could be dampened by tariff-related uncertainties.

President Trump announced he's pulling federal funding for California's high-speed rail project, calling it a "disaster" and demanding the state return $3.5 billion already spent. The project, plagued by delays and cost overruns, was supposed to connect L.A. and San Francisco but has been scaled back to a shorter Central Valley route. California officials are pushing back, arguing the move is politically motivated and vowing to fight it.

The head of the New York Fed isn’t keen on cutting interest rates just yet, warning that new tariffs could push prices even higher. Basically, he’s signaling that the fight against inflation isn’t over—and cheaper borrowing costs might have to wait.

New York Fed President John Williams warns that the economic fallout from recent tariffs is only beginning to ripple through the economy—meaning higher prices, supply chain headaches, and potential slowdowns could still be on the horizon. He’s not hitting the panic button yet, but his tone suggests businesses and consumers should brace for more turbulence.

Nvidia and AMD are poised to gain a bigger slice of China’s AI chip market after the U.S. loosened export restrictions, allowing sales of Nvidia’s H20 processors and AMD’s MI308 chips. While these chips are less powerful than their top-tier counterparts (thanks to U.S. trade rules), their availability is a relief for Chinese AI firms scrambling for hardware. Nvidia’s CEO even hinted at bringing more advanced chips to China down the line—though that’ll depend on regulatory wiggle room.

Editor’s Note: This isn’t just about chip sales—it’s a high-stakes balancing act. China’s AI industry needs these chips to keep pace globally, and U.S. firms don’t want to lose a massive market. The relaxed rules ease tensions (for now), but the tech cold war isn’t over. Watch how this plays out: tighter restrictions could return, or China might double down on homegrown alternatives. Either way, the AI arms race just got a little smoother.