Good morning. US stock futures rose in Thursday morning trading as investors digested news from Federal Reserve Chairman Jerome Powell about possible interest rate hikes in the future.

"Successful investors must possess an interest in the process. If it’s not enjoyable, a lousy job inevitably results"

William Bernstein

Top News

More interest rate hikes coming

WHAT: Federal Reserve Chairman Jerome Powell continues to talk tough on inflation. Speaking at a monetary policy session in Portugal, Powell said he expects multiple interest rates increases in the not so distant future — and even at a more aggressive pace!

WHY: The Fed has hiked interest rates at each meeting since March 2022, a span that included four straight three-quarter point moves before taking a break in June.

Biden Admin funnels billions in grants to speed up EV transition

WHAT: US President Joe Biden seems intent on revving up the electric revolution. His administration announced plans to inject a cool $2 billion into turbocharging domestic electric vehicle manufacturing. The Department of Energy’s Vehicle Technologies Office said the program will prioritize projects that refurbish or retool manufacturing plants.

WHY: The Domestic Manufacturing Conversion Grants for EVs program will provide cost-shared grants for making efficient hybrid, plug-in electric hybrid, fully electric and fuel cell vehicles.

US banks pass stress tests

WHAT: The biggest banks in the United States just aced the ultimate stress test, a sign pointing to the resilience of the American banking system. The Federal Reserve reported that despite the regional banking crisis that upended Silicon Valley Bank, Signature Bank and First Republic Bank, the banking system remained robust.

WHY: The stress tests have become an annual report card for the US’ financial systems since being implemented in the aftermath of the 2008 Great Recession. The tests vary from year to year but generally involve the Fed testing to see how steep the losses in the banking industry would be if economic activity were to severely contract.

In Other News

Microsoft CEO: Takeover deal good for gaming

 WHAT: In a courtroom battle against regulators trying to block their $69 billion takeover of Activision Blizzard, Microsoft CEO Satya Nadella stepped up to defend the deal saying it would be good for the gaming industry. Taking the stand, Nadella said his goal was to get Activision games on as many consoles as possible.

WHY: Microsoft is fighting to close the acquisition ahead of a July 18 deadline that could trigger it having to pay a $3 billion breakup fee to Activision.

OpenAI sued for data theft

WHAT: A group of anonymous individuals is pointing fingers and claiming ChatGPT parent OpenAI is stealing “vast amounts” of personal information to train their AI models. The group, only identified by their occupations and initials filed a lawsuit with the federal court in San Francisco, citing $3 billion in potential damages.

WHY: ChatGPT and other generative AI applications have stirred intense interest in the technology’s promise but also sparked a firestorm over privacy and misinformation.

Refloating Twitter’s ad ship

WHAT: Twitter’s new CEO Linda Yaccarino is on a mission to bring back those elusive advertisers! According to reports from the Financial Times, Yaccarino is working on a slew of activities to woo advertisers back which include introducing a video ad service, pursuing more celebrities and raising headcount.

WHY: After Elon Musk acquired Twitter in October of last year, the social media firm faced months of chaos, including layoffs of thousands of employees, criticism over lax content moderation, and an exodus of many advertisers who did not want their ads appearing next to inappropriate content.

Key Economic Events

• Thursday - Fed’s Bostic Speaks

• Friday - U. Of. Mich. Consumer Sentiment

Notable Briefs

• Utilize these 8 resources to become a better investor!

• Here’s how to avoid those common bank fees!

• Are you an overthinker?

• Was this forwarded to you? Sign up here.

• Want to advertise in Daily Market Briefs? Go here.