The Rundown - Musk Launches New Political Party, Prison Stocks Rise on Detention Center Funding

Episode Date: July 7, 2025

Stock market update for July 7, 2025. This video is for informational purposes only and reflects the views of the host and guest, not Public Holdings or its subsidiaries. Mentions of assets are not recommendations. Investing involves risk, including loss. Past performance does not guarantee future results. For full disclosures, visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Public.com/disclosures⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.

Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zadadmani, and today is Monday, July 7th. In today's episode, we'll tell you about the latest on the trade deals as we approach the July 9th deadline. We'll also tell you about Elon's plans to launch a new political party that has Tesla investors nervous. Then stick around to the end of the show to find out how much money people are expected to spend this week during Amazon Prime Day.

We got a great show for you today. Let's go. Markets are coming off. Another record-breaking week. The S&P 500 and NASDAQ both jumped around 2% last week, closing at record highs again, despite it being a short week. The big boost came on Thursday after the June jobs report showed a continued strength in the labor market.

We talked more about that on Thursday's show, so go check that out if you missed it. Now, this week should be really interesting because we are now in Crunchtime. when it comes to tariff talks. President Trump's 90-day tariff pause ends on Wednesday, July 9th, and President Trump posted on truth social that tariff letters and deals will be delivered to various countries around midday today. And then to add to the drama, President Trump also threatened countries that align with BRICS nations with an additional 10% tariff.

Briggs countries are led by Brazil, Russia, India, China, and South Africa. But there is some confusion on what the actual deadline. for trade deals is because over the weekend, Treasury Secretary Scott Besson said that if deals aren't reached by August 1st, the tariff rates will go back to the April levels shown on that infamous Liberation Day poster. So I'm still a little confused and if the deadline is July 9th or August 1st. So we'll have to see how it all shakes out this week. But I do wonder, though, how is the stock market going to react this time if tariff rates go back to the Liberation Day levels from back in April? Because remember, the markets were a bloodbath back in April.

So we'll keep an eye on all of that this week. Make sure you guys are subscribed for the podcast and tuning in every day to stay in the loop. Let's run through some headlines. Starting with Elon Musk. Elon is back in the political arena and Tesla shareholders are not thrilled. Over the weekend, Elon Musk announced that he's launching a new political party called the America Party. His goal is to take on both Republicans and Democrats by focusing on House and Senate races in

26 and maybe even back a presidential candidate too. Now, Tesla's shares are down 8% this morning because investors are worried that Elon isn't focused on Tesla at a time when the company actually needs his attention. Remember, Tesla just posted back-to-back drops in quarterly deliveries of their cars. Now, Elon had told investors during Tesla's earnings call back in May that he would be refocusing on Tesla after leaving the Trump administration, but that doesn't seem to be the case. He's still focused on politics. In a series of postings, he's a series of postings. on X, Elon Musk said that the America Party is meant to challenge the Republican Democrat Unip Party. Now, this move has caught the attention of President Trump. He fired back on Trude Social

saying that he's saddened to watch Elon Musk go completely off the rails. Now, Elon says this is all about attacking the government waste and the growing deficit. Trump, on the other hand, says that Elon is just mad that he's losing his EV subsidies, which are set to expire in September per the Big Beautiful bill. Either way, this new political venture, from Elon Musk adds more noise at a time when Tesla investors were probably hoping for less drama. Tesla stock is getting crushed this year. It's down 28% so far. And there might be more pain going forward. Let's shift gears and talk about AI. The US government continues to tighten the screws on AI chip exports. This time, they're targeting Malaysia and Thailand. The Trump

administration is drafting new rules that would block companies like Nvidia from shipping their advanced AI chips to those two countries out of concern that China is using them as a backdoor to get around U.S. chip sanctions. See, under current restrictions, China is banned from buying Nvidia's top tier chips directly. But Washington believes that Chinese companies have been rerouting shipments through third-party countries. So Malaysia and Thailand would be the first new additions to the restrictions list under Trump's planned AI chip overhaul.

And Singapore is also on Washington's radar. In Singapore, three men were just charged with trying to smuggle. AI servers to Malaysia, and one of them was a Chinese national. According to Singapore's law minister, these servers may have included Nvidia chips, and they weren't even sure if Malaysia was even the final stop. And this new draft rule by the Trump administration would also formally scrap parts of the Biden-era AI diffusion rule, which placed broader curbs on chip exports to over 40 countries. That policy wasn't very popular. It drew criticism from Nvidia and other allies for being too vague. So this is Trump's first

big step in replacing Biden's AI diffusion rule with what the team is calling a bold and inclusive strategy. I don't know if inclusive seems to be the right word here, but that's what they're going with. Now, for Nvidia, this is a tricky situation because Singapore alone makes up 18% of its revenues last year. So how this plays out could have a real consequence for their international business and the global AI race. Definitely something to keep an eye on. Let's talk about some stocks making moves today. Private prison stock. are on the move this morning. Shares of Geo Group and CoreC Civic are rising as investors expect these two companies to be major beneficiaries of the massive increase in funding

for immigration detention centers. The Big Beautiful Bill, which was signed into law by President Trump over the weekend, will triple the funding for immigration detention centers to $45 billion. That's more than the combined amount spent on detention centers during the Obama, Biden, and the First Trump administration. Geo Group and Core Civic are the two largest detention contractors. They've already won new contracts from ICE this year. As a result, both of their stocks are up this morning. Meanwhile, it's a rough morning for CoreWeave and Core Scientific. Shares of both of these companies are down after CoreWeave announced that it's acquiring Core Scientific in a stock-for-stock deal. Now, these two companies are similar. Both of them

operate data centers, but CoreWeave focuses on AI workloads while Core Scientific has its roots in crypto mining. This deal values Core Scientific at $9 billion. It's expected to close in Q4 of this year. But investors are not loving this news. Core scientific shares are down 17% this morning, and CoreWeave is off by more than 2%. Let's wrap the show with the fun fact. Amazon Prime Day kicks off this week,

and a lot of people are expected to shop. Online spending is expected to jump to $23.8 billion in the four-day window, according to Adobe Analytics. Amazon is making their prime day longer this year. they're making it four days instead of the two days that it was last year. And other retailers like Target, Walmart, and Best Buy are jumping in on the midsummer shopping spend. And like I said, these promotions seem to be working. The amount of money being spent during this period is expected to be up 28% from last year.

And it's double the amount spent online on Black Friday. Now look, I try not to fall for these sales, all right? But I'll be honest, I'm probably going to be doing some back-to-school shopping for my daughter. And along the way, if I see some good deals on vacuum cleaners, and an air fryer, I might pick that up as well. Maybe even a new monitor. They got me. All right, they got me.

Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you guys are looking for some more content, go check out our weekend deep dive from this past weekend. We talked about Figma and their upcoming IPO. Got some interesting reactions about that deep dive. So go check that out and let us know what you think. And while you're at it, don't forget to hit us with a five-star rating on Apple, Spotify,

wherever you listen to your podcast. And if you're listening on Spotify or YouTube, don't forget to leave us a comment, vote in today's Spotify poll. All that engagement really does help us out, and it helps other people find the show. Thank you guys so much for listening. Shout out to Mike and Connor for all the help behind the scenes. And we'll see you guys back here tomorrow.