Mortgage giant buys real estate leader, offers cheaper mortgages

Charlie McElligott, a well-known markets strategist, is weighing in on the current stock market rally—which has defied expectations—and questioning how much longer it can last. He hints that the usual rules might not apply right now, calling the situation "weird." Essentially, investors are left wondering whether this surge is sustainable or if a correction is looming.

Editor’s Note: Markets have been on a tear lately, but the underlying mechanics don’t quite add up for some experts. McElligott’s take matters because if this rally is built on shaky foundations, everyday investors—not just Wall Street pros—could feel the fallout when reality catches up. It’s a heads-up to pay attention, even if you’re not glued to the ticker.

Stocks took a nosedive in early April—one of the worst drops ever—but since then, the market has clawed its way back to record highs, with surprising calm. Charlie McElligott, a strategist at Nomura, breaks down why: investors who bailed during the crash are now piling back in, aggressively betting against volatility (i.e., expecting smooth sailing ahead). It’s a classic case of FOMO (fear of missing out) fueling the rebound.

Editor’s Note: Market whiplash like this isn’t just for Wall Street nerds—it affects retirement accounts, inflation, and even how companies plan hiring or spending. McElligott’s take hints that this rally might be more about panic-buying than fundamentals, which could mean turbulence ahead if sentiment shifts again. Worth keeping an eye on, whether you’re trading or just trying to understand why your 401(k) keeps yo-yoing.

The UK government’s borrowing costs dropped, and the pound gained strength after Prime Minister Keir Starmer emphasized his close collaboration with Chancellor Rachel Reeves. Investors seem reassured by the show of unity, signaling calmer nerves after recent economic uncertainties.

Editor’s Note: When borrowing costs fall, it’s a sign that lenders have more confidence in the UK’s financial stability—which could mean cheaper debt for public projects and better conditions for businesses. The pound’s rally also suggests global markets are warming up to the new government’s approach. In short, it’s a small but encouraging step for the economy.

House Republicans have pushed forward a tax-cut bill championed by former President Trump, setting it up for a final vote. The move signals a renewed effort to prioritize tax reductions, a key GOP agenda item, despite potential hurdles in a divided Congress.

Editor’s Note: Tax policy always stirs debate, and this bill’s progress—whether it passes or not—shows where Republicans are focusing their energy ahead of the election. If it moves forward, it could shape economic messaging for both parties, affecting everything from campaign talking points to your paycheck. But with Democrats controlling the Senate, its fate is far from certain.

Citi analysts are feeling bullish about Thales, a major European defense company, and have bumped up their stock price target to €284. The move comes as Europe ramks up military spending—likely due to ongoing geopolitical tensions—and Thales stands to benefit.

Editor’s Note: Defense stocks are heating up as European nations pour more money into military budgets, and Thales, with its tech and aerospace arms, is well-positioned to cash in. If you're watching the defense sector, this is a signal that big banks see long-term growth ahead—not just for Thales, but possibly for the industry as a whole.