House Passes Republican Budget Plan, Setting Up Major Spending Battles

The House narrowly approved a Republican budget resolution calling for $4.5 trillion in tax cuts and $2 trillion in federal spending reductions over the next decade, advancing key parts of former President Trump’s economic agenda. The vote, which nearly collapsed due to GOP infighting, highlights the challenge of balancing deep tax cuts with spending reductions. While the plan sets broad fiscal targets, it does not specify which programs will be cut, though Medicaid and food assistance are likely targets.

Speaker Mike Johnson played a crucial role in securing votes, with help from Trump, to unite both centrist Republicans wary of entitlement cuts and conservatives demanding deeper spending reductions. The resolution's passage enables the use of reconciliation, a process allowing tax and spending legislation to pass the Senate with a simple majority, bypassing filibusters. However, Republican lawmakers still face difficult negotiations over the specifics of tax and spending policies, with disagreements over Medicaid, business tax breaks, and the overall deficit impact.

Sources: The New York Times

Israel Vows to Maintain Military Presence in Southern Syria

Israeli Prime Minister Benjamin Netanyahu has declared that Israel will not permit Syria’s new army or the insurgent group Hayat Tahrir al-Sham (HTS) to operate in southern Syria. Speaking at a military graduation, Netanyahu emphasized Israel’s demand for a fully demilitarized zone in the provinces of Quneitra, Daraa, and Suwayda. Defense Minister Israel Katz reinforced this stance, stating that Israeli forces will remain on Mt. Hermon and in the U.N.-designated buffer zone indefinitely for security reasons. The buffer zone, initially established under a 1974 ceasefire, was taken over by Israel following the fall of Bashar Assad’s government in December. Syrian authorities and U.N. officials have called for Israel’s withdrawal, but Netanyahu’s government argues that its military presence is necessary to protect Israeli communities and the region’s Druze population. Israel has also built military posts in the area to reinforce its position.

Sources: Associated Press

Ukraine and U.S. Reach Economic Agreement on Rare Earth Minerals Amid Military Aid Talks

Ukraine and the United States have reached a preliminary agreement on an economic deal granting the U.S. access to Ukraine’s rare earth minerals, a strategically significant resource. According to three senior Ukrainian officials, the deal is expected to be signed as early as Friday, with Ukrainian President Volodymyr Zelenskyy potentially traveling to Washington to meet with U.S. President Donald Trump. The agreement does not include security guarantees for Ukraine but may help secure continued U.S. military aid, which Kyiv urgently needs.

Sources: PBS

Tesla Stock Drops More Than 8%

Tesla shares dropped more than 8% on Tuesday, pushing the company's market capitalization below $1 trillion and marking its lowest valuation since early November. The stock has declined 25% since the start of the year and is down over 35% from its record close in December. The decline could be explained by investors concerns of Musk’s political entanglements and Tesla’s struggles in key markets—including an 11.6% decline in California sales. Despite the stock’s current decline, bullish investors cite Tesla robotaxi prospects and the Optimus robot project as future sources of revenue for the company that could greatly increase the stocks value.

Sources: CNBC

World Awaits Nvidia Earnings Report

Nvidia (NVDA), a key driver of Wall Street's AI boom, is set to release its latest earnings report, which could significantly impact investor sentiment. Analysts expect Nvidia to report a 70% increase in revenue to $38 billion and a 60% rise in net income to $21 billion. However, recent volatility in AI stocks—partly triggered by Chinese startup DeepSeek’s claim of developing an advanced open-source AI model at a fraction of the cost—has raised concerns about the sustainability of Nvidia’s growth. The DeepSeek news previously wiped out $589 billion in Nvidia’s market value, as investors feared a shift in AI spending away from Nvidia’s high-cost chips.

Sources: Investopedia

Notable Headlines

• Lucid Motors CEO steps down, EV maker plans to double production

• Home Depot beats Wall Street’s estimates

• OpenAI struggles to release ChatGPT 5

• Egg prices may go up again