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- š° 5 Fact Friday: Trump-Musk Rift Erases $150B
š° 5 Fact Friday: Trump-Musk Rift Erases $150B
Just when it looked like we were headed for a drama-free week, the White Houseās billionaire bromance came to a crashing halt. And things got ugly fast.
Good morning, Maniacs!
The streak continues. Our Maniac Sentiment Index slipped to 2.4/5 for June, marking five straight bearish reads.
And itās been a big week for power dynamicsāboth political and electrical.
Trump and Xi reportedly patched things up over the phone, clearing the way for a new trade deal and unlocking rare earth flows. But back at home? Trumpās relationship with Elon Musk melted down publicly and spectacularly.
Weāre also covering Metaās nuclear ambitions, a crypto IPO that shocked Wall Street, and a job market thatās somehow hot and cold at the same time.
Letās dive in! š
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POLITICS
1. Trump-Musk Feud Explodes š
Just when it looked like we were headed for a drama-free week, the White Houseās billionaire bromance came to a crashing halt. And things got ugly fast.
Hereās how it played out:




The result? Tesla $TSLA ( ā¼ 0.66% ) dropped 14%, erasing over $150 billion in market cap. Elon Musk personally lost $34 billion, the second-largest single-day wealth hit in history.
But the fallout may be just beginning.
While part of Teslaās drop reflects the loss of political proximity and the perks that come with it, the broader implications could be more severe.
Muskās companies have secured $22.5 billion in federal contracts since 2000, and now they may be entering stormier political waters:
SpaceX: Roughly 10% of its revenue comes from NASA contracts.
Tesla: Approval for robotaxis depends on the National Highway Traffic Safety Administration.
Neuralink: Still in early stages, it requires FDA clearance for trials and eventual market approval.
The Boring Company: Projects involving infrastructure and tunneling face oversight from agencies like the EPA and the Department of Transportation.
If Washington turns cold, the impact could ripple across Muskās empire.
Thereās also a broader effect to watch.
Musk plays in nearly every frontier sectorāAI, robotics, EVs, space, and brain tech. If his companies fall out of favor, the vacuum they leave behind could open the door for new players to emerge.
The bottom line? Ignore the drama. Watch the second-order effects. This feud could spark a new wave of unexpected winners and losers.
STOCKS
2. Meta Goes Nuclear To Power AI āļø
Big Techās energy arms race is heating upāand lately, itās atomic.
On Tuesday, Meta $META ( ā² 1.04% ) signed its first-ever nuclear power deal: a 20-year agreement with Constellation Energy $CEG ( ā¼ 0.73% ).
The deal kicks off in June 2027 and secures the entire output of the Clinton Clean Energy Center in Illinois, a plant that had previously been on the brink of closure.
Meta will purchase 1.1 gigawatts of zero-carbon electricity at an estimated $80 per megawatt-hour. Thatās enough to power nearly 1 million homes! Or, a growing fleet of AI data centers.
But this is just the start.
Meta plans to secure up to 4 gigawatts of nuclear energy to support its increasingly power-hungry AI operations. Since 2019, the companyās electricity use has nearly tripled, thanks to its Llama AI model.
Why nuclear? Because it checks every box.
ā
Reliable, 24/7 baseload power
ā
Carbon-free emissions
ā
Long-term price stability
That makes it a perfect match for data centers running nonstop inference workloads. Unlike wind and solar, nuclear doesnāt need the sun to shine or the wind to blow.
Metaās move follows a broader trend:
Microsoft is restarting a shuttered reactor in Pennsylvania.
Amazon bought a nuclear-powered data center campus.
Google is backing small modular reactor (SMR) startups.
Constellation, which operates 20% of U.S. nuclear capacity, is one of the few providers capable of meeting Big Techās scale. And with the Trump administration pushing to quadruple U.S. nuclear output by 2050, permitting is expected to get faster and friendlier.
The trend is clear: AI demands electricity, and nuclear is emerging as the smartest bet for powering that future.
Investors are taking notice. VanEckās Nuclear ETF ($NLR) is up +19% YTD, crushing the S&P 500ās modest +1% gain.
Where do you stand on nuclear power? |
CRYPTO
3. Circle Rockets 168% On IPO Day š
Circle $CRCL ( ⼠15.54% ), the company behind the USDC stablecoin, just made its public debut⦠and it did not disappoint.
After upping its IPO size twice in one week, Circle shares officially began trading Thursday and soared 168% by the closing bell.
The stock priced at $31, opened at $69, and briefly topped $103 before settling at $83.23. The crypto firm now has a market cap north of $16 billion.
Not bad for a company that scrapped its SPAC deal less than three years ago.
Whatās behind the excitement?
Circle is the second-largest stablecoin issuer in the world, with $60B worth of USDC in circulation.
Unlike Bitcoin, which swings with market sentiment, stablecoins are built to stay steady. Theyāre pegged 1:1 to the U.S. dollar and backed by cash or short-term Treasuries. That means Circle earns serious interest incomeā$579 million in Q1 alone.
If this day-one performance is any indication, stablecoins are getting their moment in the (regulatory-approved) sun. And Circle may be doing more than riding the crypto waveāit could be reviving the IPO market, too.
After a multi-year drought, Circleās blowout debut could encourage other crypto hopefuls to test the public waters.
ECONOMY
4. Jobs Data Sends Mixed Signals š¼
This weekās labor data was all over the place. Depending on where you look, the job market is either holding steady⦠or slamming the brakes.
Letās start with the governmentās JOLTS report for April:
7.4 million job openings, up from 7.2 million in March
5.6 million hires, the most in seven months
1.8 million layoffs, a sharp jump
3.2 million quits, the lowest of the year
All told, it suggests a market thatās slowing, not stalling. Demand is cooling, but employers are still hiringāand not panicking.
Then came the ADP private payroll report, and the vibes changed.
It showed just 37,000 new jobs in Mayāthe weakest reading since March 2023. Thatās a big miss versus the 110,000 expected. And while ADP isnāt the most watched data source, it was enough for President Trump to once again call on the Fed to lower interest rates.
So whatās the disconnect?
JOLTS measures gross hiring activity, including people hired to replace others. ADP only measures net job gainsāhires minus separations.
JOLTS covers April and both public and private jobs.
ADP covers May and only the private sector.
Fortunately, weāll get the final and most influential piece of the puzzle later this morning. The Non-Farm Payrolls report offers the broadest and most reliable snapshot of the job market.
Economists expect:
130,000 jobs added
4.2% unemployment
62.6% participation rate
A strong report could lift the dollar and stocks, while lowering the odds of a Fed rate cut anytime soon. A weak one could do the opposite, pushing bond yields down and raising hopes for cheaper borrowing ahead.
STOCKS
5. Guess That Stock šµļøāāļø
This company was once the most hated bank in America. Now, itās finally getting off the Fedās naughty list. Can you name the stock?
1. After a 2016 fake-accounts scandal, this bank was hit with a historic $1.95 trillion asset capāthe first time the Fed ever blocked a bank from growing.
2. The cap stayed in place for seven years, limiting deposits, lending, and acquisitions while rivals like J.P. Morgan sprinted ahead.
3. This week, the Fed finally lifted the restriction. Officials said the bank had improved its risk controls and passed a third-party audit.
4. The company serves around 70 million customers and is one of the largest banks in the U.S., even after years of regulatory timeout.
5. To celebrate, it handed out $2,000 bonuses to over 200,000 employees. The stock ticked up 3% as investors welcomed its return to full strength.
Got a guess? Tap here to reveal the answer ā
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