The new Kansas law passed the Republican-controlled Legislature with more than the two-thirds majority required to override a veto. Democratic Gov. Laura Kelly said the measure “goes too far,” but let it become law without her signature.
“I think investors are aware that the trade deal is not done yet,” said Louis Wong, director for Phillip Securities Group in Hong Kong.“I would advise investors to remain cautious in the near term and to be prepared for unexpected news from the trade front,” he added.
On Wall Street, Coinbase Global jumped 24% after the cryptocurrency exchange learned its stock will join the widely followed S&P 500 index next week. That means many investment funds will likewise add it before trading begins on Monday. Coinbase will replace Discover Financial Services, which is getting bought by Capital One Financial.Stocks in the artificial-intelligence industry were also strong. Nvidia rose 5.6% and was the biggest single force pushing upward on the S&P 500. It’sSaudi Arabia’s sovereign wealth fund-owned AI startup Humain to ship 18,000 chips to the Middle Eastern nation to help power a new data center project.
Super Micro Computer, which builds servers used in AI, jumped 16%. GE Vernova, which is hoping to power vast AI data centers, rose 4%. Palantir Technologies gained 8.1%.They helped offset UnitedHealth Group, whose shares tumbled 17.8% after it
due to higher-than-expected medical costs. The nation’s largest health insurer also announced that CEO Andrew Witty was stepping down for personal reasons and that Chairman Stephen Hemsley will become CEO, effective immediately.
UnitedHealth was the main reason the Dow lagged behind other U.S. stock indexes.One of the biggest questions for the Senate: whether the tax breaks really need to be offset by cuts elsewhere.
To offset the costs of lost tax revenue, House Republicans have proposed more than $1 trillion in spending reductions across Medicaid, food stamps and green energy program rollbacks. However, Republicans in the Senate do not believe there is a cost associated with permanently extending the existing taxes, setting up a political and procedural showdown ahead.The House bill includes a $4 trillion increase in the debt limit. Treasury Secretary Scott Bessent has warned that the United States is on track to run out of money to pay its bills as early as August without congressional action.
Sen. Rand Paul, R-Ky., said he won’t support the bill if the debt ceiling increase is included. He said he’s willing to consider it if it’s taken out.But most Republican senators want it to avoid a separate fight that would require 60 votes in the Senate. Texas Sen. John Cornyn said that if they deal with the debt ceiling outside of the legislation then they would have to “pay a king’s ransom” to Democrats to get enough votes.