Trump Just Cracked The Stock Market - Do This Today

[00:00:00] Speaker 1: the stock market has been taking a beating and you want to pay attention to this as an investor because there are three things happening at the same time and I'm going to go over all three in this video. Number one is the AI spending might not be growing as fast as the economy would have expected. Number two is that the Federal Reserve Bank might not be cutting interest rates in 2026 they might actually be raising interest rates and number three is that because of the new conflict happening with Iran in the Middle East and President Trump announcing that there might be more attacks coming oil prices are going up again. So let me break this all down in this video starting with AI spending because for the last 18 months the biggest driver for the stock market had been more AI spending and more belief that more AI spending is coming because the stock market doesn't always operate on reality it's based off of what people believe reality will be and there's been this big belief that AI spending will just continue going up forever. Well we're getting more information right now and maybe that's not the case because number one Broadcom is one of the biggest AI chip manufacturers and they reported earnings just a couple days ago and what they said was that their numbers are fine but they did not raise their sales outlook for AI chips and what happened after that is is that the Nasdaq which is the group of stocks which are primarily tech they saw one of their biggest drops in about a year the stock market fell hard all because we got the news that AI chip sales are not expected to accelerate more than expected. Then number two if we take a look at softwares and this SaaS-pocalypse SaaS companies are software companies and they took a beating in the early part of 2026 the idea was why do you need to use a SaaS product because you can just build it yourself with AI you can use chat GPT or cloud or one of these AI tools build some AI agents that way you don't have to pay for these SaaS companies and so what we saw was that all these software companies fell extremely hard in the beginning part of 2026 but now it looks like that might be ending the idea being hey yeah these software companies might be replaced by AI but now some of these software companies are also using AI and so we don't know which one is going to be it's also kind of hard for these companies to build these new software companies themselves so maybe these software companies got over hurt they fell down a little bit too hard and so now we're starting to see the software companies go back up as companies say we still need these software companies and we still need the AI tools as well. Then number three is data centers because we just got the news that Microsoft is also canceling some of their projected data center lease builds. Why? Because maybe they don't see the demand for it or maybe they don't believe that it's going to be built on their expectation time but we don't know exactly what the answer is. The idea is now we're starting to see this trend though that data center cancellations are starting to rise and the reason why this matters is because data centers and AI go hand in hand because all of your AI tools need data centers to back them. I'll show you exactly what I mean. In 2024 six data center projects were cancelled. In 2025 25 data center projects were cancelled. In 2026 in just the first quarter the first three months of 2026 more than 20 data center projects were cancelled. So we're expected to see more of this acceleration of these data centers being cancelled. Again it could be because some of these companies are saying we're not anticipating that much need for data centers in the future or it could be that these data centers are not going to be built as fast as we wanted which is why we're canceling it. Which one? We don't exactly know just yet but because the stock market saw this lack of future growth with AI chips. Because the stock market is seeing the shift with the SaaS apocalypse and because of what's going on with the data centers we are seeing this big shift in AI spending expectations on the stock market which is the first thing that has been hitting the stock market. By the way we're covering all this on my live investor workshop on June 16th. It's at 12 p.m. Eastern time noon. If you're an investor and you want to see how all these changes in our economy with what Trump's doing with AI with the geopolitical stuff actually create investment opportunities, I invite you to join me on my investor workshop on June 16th. It's free. It's live. There's a limited number of people that can actually join me live because our software has that restriction. So if you're interested, please register soon. I have that link for you down in the description below. It's at 12 p.m. Eastern time. And when you sign up, you're also going to get access to market briefs, which is my newsletter for investors. So if you're an investor, I look forward to seeing you on June 16th at 12 p.m. Eastern time noon. The second big shift for the stock market right now has to do with what is the Federal Reserve Bank going to do. Now, all the news has been on this topic of the new Fed chairman. Kevin Warsh is the new head of the Federal Reserve Bank. The reason why this matters is because the Federal Reserve Bank, although they're called the Federal Reserve Bank, is actually not a bank. You and I can't go with the deposit money. It's not a reserve because they're not sitting on any cash reserves and they're not federal. It says so on their website. And because they're not federal, the president cannot tell the Federal Reserve Bank what to do. But because the previous chairman, Jerome Powell, his term expired, President Trump got to appoint the new chairman, Kevin Warsh. And President Trump and President Trump has been saying and demanding lower interest rates. Well, the president doesn't set the interest rates. The interest rates are set by the Federal Reserve Bank. And so President Trump says, I want lower interest rates. And that's why I'm going to appoint Kevin Warsh. So leading up to this new chairman, everybody was under the assumption that we're going to see drastically lower interest rates, because that's what President Trump wants. Well, now Kevin Warsh might not be able to do that. Part of the reason is because of higher oil prices. Part of the reason for that is the higher inflation numbers. But now we also got this new economic report, which said that in May, the jobs numbers were way better than expected, that our economy in the United States grew and the job market is growing. When that news came out, the stock market fell hard. And that might have you scratching your head. Wait, we got a good economic report. There's more jobs being added. Why would the stock market fall? Because what the Federal Reserve Bank does with interest rates depends on what's happening in the economy and inflation. If we have a strong economy, the Federal Reserve Bank has less need to stimulate the economy because we're already strong. Well, how does the Federal Reserve Bank stimulate in an economy? It stimulates through lower interest rates. So if we have a strong economy, at least the reports are saying that the job market is strong, there's less need for the Fed to cut interest rates. Likewise, if we have reports saying that inflation is a problem, that inflation is high, the way that the Federal Reserve Bank fights inflation is by raising interest rates. Right now, we have concerns about inflation. Why? Because inflation is already going up before the conflict in the Middle East. Then the United States attacked Iran, oil prices skyrocketed, and now inflation is becoming a bigger problem again. So now we have this inflation problem that's in everybody's face, while the job market seems okay. Yes, there are concerns about the job market because of AI. Yes, there are concerns about the economy because people don't have money to spend. Yes, there's a lot of concerns that people are saying the job market numbers are wrong. I get that, but I'm showing you what the Federal Reserve Bank is analyzing. According to the Federal Reserve Bank numbers, the economy looks overall pretty healthy. Inflation has a big red flag. Inflation is a problem. And this is where now you have more and more investors and more and more Wall Street institutions say, Uh-oh, we might not see lower interest rates that we were hoping for. Even though President Trump wants lower interest rates, the Fed might not be able to actually deliver it. And in fact, now more and more people are saying we might actually see higher interest rates coming in 2026. How are they predicting this? By looking at the bond market. A bond is a loan. And more specifically, they're looking at Treasury bonds. A Treasury bond is when you lend money to the United States government. We know that the government is in debt. They have $39 trillion of debt and they have to keep borrowing money. Well, the government has to pay an interest rate on that money. And so you can lend money to the United States government. That's called buying a Treasury. And in exchange, the government is going to pay you interest. Well, what we saw is that after this job market report came out, Treasury yields spiked, meaning the interest rate that the government has to pay on their interest went up. Why? Because people are now anticipating that higher interest rates are going to be coming. We are seeing the highest 30 year Treasury yield, meaning lending money to the government for 30 years, the highest interest rate on this in decades. Because people are now starting to anticipate that interest rates might have to go up in 2026 to combat the higher inflation, to combat the higher oil prices. Well, right now, the economy stays strong. If we see a collapse in the economy, now things might change. But based off the economic data today, more and more Wall Street institutions are saying we don't believe interest rate cuts are coming. We believe interest rate hikes are coming. And it's kind of funny because we were talking about this last year and it was this kind of foreign concept that, no, that's not possible. But here we are today, you're starting to hear more and more whispers that are becoming louder that we could be seeing interest rate hikes coming. So let's see what ultimately happens in 2026. But that is hurting the stock market because the stock market likes lower interest rates because that means more money comes into the stock market. Then we have number three, which is the third and arguably most notable catalyst, which is the conflict in the Middle East. We've been kind of back and forth with the ceasefire with Iran and all this other stuff. And President Trump says there are deals coming, then there's attacks that happens. And it's a very confusing process because you keep hearing about ceasefires, but attacks keep happening. Well, in the recent days, Iran attacked one of the United States helicopters. And in response, President Trump said that we have to essentially do something about it. And so we saw some attacks back on Iran and some more attacks started happening in the Middle East. Now, why does this matter for the stock market particularly? I understand that there's a cost to human life and wars are not good. And I agree. I mean, it's crazy, but that's besides the point. On the financial side, when there's conflict in the Middle East, that impacts oil prices. Because Iran not only is a major producer of oil, but because that Strait of Hormuz that is over there. The Strait of Hormuz is a big transporter of oil. And Iran can shut that down. And so when oil cannot be transported, there's less supply of oil in the world. If there's less supply of oil, now the cost of oil goes up. The reason why that matters is when you have higher oil prices, that means you have higher gas prices, higher diesel prices. Higher costs of groceries because it costs for money to ship the groceries from the farm to the warehouse to the store. And the higher cost of producing the groceries because farmers have to pay more money for fertilizer. So higher oil prices make everything more expensive. And now they're starting to be more uncertainty again. Are we going to continue to see more conflict in the Middle East, which will lead to higher oil prices for longer? Or even higher oil prices from here? Or are we going to actually have a deal which will hopefully be oil prices down and calm concerns about inflation oil prices? And the question is, we don't know. We were kind of strong on both sides again and again. We keep hearing the story that a deal is coming. A deal is coming. We're very close to a deal. But then we start to see more attacks. And that's what's causing a lot of volatility in the markets because the markets on one hand say a deal is coming. Oil prices are going to fall. Inflation is going to be under control and everything is going to be okay. But then we start to see things, actions that don't align with that. We'll start to see more conflict in the Middle East. We'll see the Strait of Hormuz get shut down. We'll see oil transportation get shut down. And now we're entering a point where more and more of this concern is leading to volatility in the stock market because the stock market does not like uncertainty. And people are starting to understand that higher oil prices are going to have a long-term impact on the economy, even if it's a short-term high oil price spike. We've seen this happen in the past multiple times that if oil prices stay high for six months, that has a long-term impact on the economy because those higher oil prices then get trickled down into other parts of the economic system. And that takes a long time for the get passed through, which causes inflation spikes, which causes pain in the job market, which causes pain in the stock market. So that's the thing now that investors are paying attention to. It doesn't mean the markets are going to just crash, but it means that it's going to create more volatility. And that's the thing that you want to understand. So what's happening right now is there's the AI spending coming under concern, that the entire market has been boosted because of all this AI spending. Then we have the concerns about what is the Federal Reserve Bank going to do. Then we have concerns about more conflict happening in the Middle East. And this is where a lot of people now start to panic and they say, well, what do I do? Should I jump in and buy this stock? Should I sell all my stocks? And the reality is no, you got to stop panicking and investing based off of emotion. Remember, changes create opportunity. This is why I'm hosting a workshop on June 16th. Again, if you haven't registered for it yet, I have the link for you down in the description. All changes create opportunity because money starts to move. And when money moves, it creates an economic and investment opportunity. And that's what you want to be paying attention to. Because the people that panic are the ones that now start to sell investments when markets go down. And the reality is you want to do the opposite. When markets go down, that's when you want to be buying even more aggressively. I call it ABB. Always be buying. Set up a system every week, maybe two weeks, every month. More money is going into the stock market. Now, maybe you have some money going into your investments passively. Maybe you have some more active investments. The idea is you are consistently investing your money. And when you're always putting money into your investments, that's how wealth is built. Period. It's not by trying to time the market. It's not by selling when markets go down. I mean, every time markets go down, you start to see the same panic. Oh my God, things are going to collapse. Now, this is the end. That's not how it works. You want to use it as a buying opportunity, not a panicking opportunity. I call it poop. Panic leads to overselling, leads to opportunity, leads to profit. Poop happens every time a downturn happens, whether it's small or big. We haven't seen a real big downturn in a little while, but they happen. They're a part of our economic system. So when you understand that poop happens, panic leads to overselling, leads to opportunity, leads to profit. And you understand ABB always be buying. Well, now when you understand poop and ABB, you have the tools to build wealth. You just have to make sure you're financially prepared, which means you have the money to invest. Because when markets go down, that creates some of the biggest invest buying opportunities for long-term investors. Again, long-term investors. That's what I'm talking about. Not traders. It creates the biggest and best buying opportunity for long-term investors because that allows you to come in and buy good investments when they're on sale. That's how I want you to be thinking. Because most people are going to be panicking. Most people start freaking out. But you've got to be able to cut through the noise and understand how to research and how to find opportunities. So a lot of changes happening in the economy. We'll see what sticks. We'll see what the market does as a reaction. But if you got value out of this video, the best thank you is a referral. So if you could, please share this video with a friend, family member, colleague, or fellow investor. That way we can continue to spread this type of financial education. Thank you. Thank you. You're welcome. You're welcome. All right. [00:16:42] Speaker 2: Let's see. We'll see you next time. Bye. Bye. Bye. Bye. The President of the United States. I'm here today to declare that America is going to win it. [00:16:53] Speaker 1: In plain English, that means hundreds of billions of your tax dollars are going to win.