Feb. 20, 2025

Trump and Zelenskyy exchanges blows, Circuit Court rejects Trump's birthright citizenship order, Apple unveils iPhone 16e, Growth stocks take a hit

Author

The Daily Loop
February 20, 2025

US-Ukraine Relations Fray as Trump and Zelenskyy Exchange Blows

Relations between Ukrainian President Volodymyr Zelenskyy and U.S. President Donald Trump took a sharp downturn as the two leaders exchanged pointed criticisms over Ukraine’s war with Russia. Zelenskyy accused Trump of being trapped in a "Russian-made disinformation space," while Trump labeled Zelenskyy "a dictator without elections," referencing Ukraine’s decision to delay elections due to martial law. The rift comes amid Trump’s push to negotiate a peace deal with Russia, with senior U.S. and Russian officials recently holding talks in Saudi Arabia. Russian President Vladimir Putin expressed willingness to meet with Trump and praised the discussions as a step toward restoring U.S.-Russia relations. Meanwhile, Trump repeated claims that Ukraine was to blame for the war and criticized U.S. military aid to Kyiv, remarks that were widely celebrated in Russian state media. The dispute raises concerns about the future of U.S. support for Ukraine as it struggles to fend off Russia’s offensive.

American officials have signaled that Ukraine’s NATO membership remains unlikely in the near future, even if a peace deal is reached.

Circuit Court Rejects Trump Administration’s Bid to Reinstate Birthright Citizenship Order

A three-judge panel from the 9th U.S. Circuit Court of Appeals denied the Justice Department’s request to immediately reinstate President Donald Trump’s executive order limiting birthright citizenship. The executive order, which sought to deny citizenship to children born in the U.S. if their mothers were unlawfully present and their fathers were neither citizens nor permanent residents, has faced legal challenges for allegedly conflicting with the Fourteenth Amendment. The panel ruled that the Justice Department had not demonstrated a strong likelihood of success in its appeal. Judge Danielle Forrest, a Trump appointee, wrote a concurring opinion emphasizing that legal challenges to major policy shifts are routine and do not necessarily constitute an emergency. The decision sets the stage for a potential Supreme Court review.

The 9th Circuit Court is often a key battleground for immigration-related legal disputes. A Supreme Court ruling could clarify whether an executive order can alter birthright citizenship without a constitutional amendment.

Sources: NBC

Apple Unveils iPhone 16e with AI Features and Higher Price Tag

Apple has introduced the iPhone 16e, its most affordable model featuring the company’s new AI system, Apple Intelligence. Priced at $599, the device is a significant departure from its predecessor, the iPhone SE, as it ditches the home button and Touch ID in favor of Face ID. The phone's AI capabilities include notification summaries and writing recommendations, initially available in English but set to expand to more languages soon. Apple hopes the device will boost sales amid declining iPhone revenue, which has dropped 2% from its 2022 peak. The company also debuted its first custom modem chip, the C1, replacing Qualcomm’s modems for 5G connectivity. Notably, the price increase—40% higher than the last SE model—comes amid stagnant smartphone sales, though analysts say it is unrelated to recent U.S. tariffs on Chinese imports.

Apple has been working on its in-house modem chip since 2019 after settling a lawsuit with Qualcomm and acquiring Intel’s modem business. While AI features are a selling point, research suggests most consumers upgrade phones due to aging hardware rather than new AI capabilities.

Dow and S&P Remain Stable, Growth Stocks Suffer

The stock market remained relatively stable on Wednesday, with the S&P 500 and Nasdaq making slight gains, while the Dow Jones edged up 0.1%. However, several high-profile growth stocks experienced sharp declines. Palantir Technologies (PLTR) dropped over 10% amid reports that the Trump administration is planning an 8% defense budget cut, raising concerns about reduced government contracts. Additionally, the company’s CEO is planning to sell $1.2 billion in stock according to some reports. Axon Enterprise (AXON) plunged 16.4% after analysts downgraded the stock due to concerns over a key tech partnership breakup. Cava (CAVA) also saw a steep decline, falling 10.4%, in line with a broader pullback in restaurant stocks.

While some individual stocks saw sharp declines, the overall market maintained stability, suggesting that broader investor confidence remains intact. While Palantir has benefited from AI-related enthusiasm, questions remain about whether its technology justifies its high valuation.

Enjoyed reading today’s newsletter? Forward this email to a friend!