Stocks opened higher Friday after Fed Governor Christopher Waller, whose name is in the running to replace Fed Chair Jerome Powell, said rate cuts could come as soon as the central bank's July meeting.
"I think we’re in the position that we could do this as early as July," Waller told CNBC during an episode of "Squawk Box," noting that he doesn't expect tariff-related effects on inflation to be "that big."
However, he made sure to point out that this is his view, not necessarily the outlook of the broader Federal Open Market Committee.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In the Fed's Summary of Economic Projections, released alongside the FOMC statement after the June Fed meeting on Wednesday, seven committee members expressed expectations that the federal funds rate will remain at its current 4.25% to 4.5% through year's end.
Chip stocks drop
Price action turned choppy mid-morning, though, as several semiconductor stocks sold off after a report in The Wall Street Journal suggested the U.S. is preparing to revoke waivers that allow global chipmakers operating in China to gain access to American products without applying for a license each time.
This follows a trade truce between the U.S. and China from earlier this month that included an agreement to hold off on initiating new export controls. While The Wall Street Journal says this "action isn't a new trade escalation," it could disrupt the delicate negotiations between the two countries.
Taiwan Semiconductor Manufacturing (TSM) tumbled 1.9%, while Nvidia (NVDA) shed 1.1% and Marvell Technology (MRVL, -1.9%).
Tesla's $2 trillion bull case
Tesla (TSLA) eked out a 0.03% gain ahead of the electric vehicle maker's highly anticipated robotaxi launch in Austin, Texas, this Sunday, June 22. The initial rides, which are by invitation only, will be in Tesla's Model Y SUV.
"The golden era of autonomous for Tesla officially kicks off on Sunday," says Wedbush analyst Daniel Ives. While the initiative will start small this summer in Austin, he expects it will scale to roughly 25 U.S. cities over the next year.
"We view this autonomous chapter as one of the most important for Musk and Tesla in its history as a company," Ives says.
And Ives believes "Tesla could reach a $2 trillion market cap by the end of 2026 in a bull case scenario" when combining its full-self-driving (FSD) and autonomous penetration, along with the acceleration of Cybercab and its AI opportunity.
This is double Tesla's market cap of $1.04 trillion at the June 20 close. Just five U.S. companies currently have a market cap above $2 trillion: Microsoft (MSFT), Nvidia, Apple (AAPL), Amazon (AMZN) and Alphabet (GOOGL).
Red-hot Circle gets its first Buy rating
Circle Internet Group (CRCL) surged 20.4% after the stablecoin platform received its first Buy rating. Seaport Research Partners analyst Jeff Cantwell initiated coverage on the crypto stock, along with a $235 price target – below CRCL's June 20 close at $240.28.
Shares have been red-hot since Circle's June 5 initial public offering (IPO) – up roughly 190% since its close that day – thanks in part to the Senate's recent passage of the GENIUS Act.
The bill will create a regulatory framework for stablecoins and expand the market for the cryptocurrency.
Cantwell expects stablecoin's "market cap" to reach $2 trillion over the long term, from its current roughly $250 billion. "As this occurs, we see Circle generating annual revenue growth of 25%-30% … with the ability to drive operating leverage as it scales further," the analyst adds.
Cantwell also calls the Circle Payments Network (CPN) a potentially "disruptive service in areas like supplier payments, remittances, and even payroll."
As for the main indexes, the Dow Jones Industrial Average was up 0.08% at 42,206, the S&P 500 was 0.2% lower at 5,967, and the Nasdaq Composite had shed 0.5% to 19,447.
Related content
- Earnings Calendar and Analysis for June 23-27
- Kiplinger's Economic Calendar for June 23-27
- Why I Trust Bonds, Even Now
-
Suze Orman's Number One Retirement MistakeInterview Find out what Suze Orman thinks costs people thousands of dollars in retirement.
-
Stay NJ Could Give You $6,500: The Deadline You Can't MissProperty Taxes New Jersey has a new property tax relief program for 2025. But the application deadline is fast approaching.
-
Don't Be a Sucker: The Truth About Guarantor and Cosigner AgreementsThere are significant financial and relationship risks involved if you agree to be a cosigner or guarantor. Make sure you perform your due diligence, and know exactly what you're getting into, before agreeing to such a commitment.
-
The Hidden Risk Lurking in Most Retirement Plans: Human BehaviorWhat's one of the differences between a good financial adviser and a great one? The ability to use behavioral coaching to guide clients away from emotional decision-making and toward retirement success.
-
Addressing Your Clients' Emotional Side: Communication Techniques for Financial AdvisersRather than focusing only on financial plans, you can better serve your clients — and grow your business — by learning what to say and do when a client gets anxious or emotional.
-
Stocks Struggle Ahead of Busy Fed Week: Stock Market TodayThe minutes from the July Fed meeting will be released Wednesday, while Chair Powell will deliver a key speech at Jackson Hole on Friday.
-
Is Crypto Investing Coming to a Credit Union Near You?Credit unions are getting in on crypto investing through partnerships with third-party platforms, but the risks to investors still apply.
-
Seven Hidden Downsides of Dividend Investing, From a Financial AdviserDividend investing could be draining your wealth with unexpected costs and limited growth potential. Here are some downsides, along with smarter strategies to take control of your retirement income.
-
How to Position Your Business for a Lucrative Exit Despite Private Equity's SlowdownAs private equity firms seek strongly performing companies, crafting a narrative about your business' high-quality assets and future opportunities can make a lucrative sale possible.
-
Don't Regret Buying a Home: An Expert Guide to Navigating Today's Tough Housing MarketWhether you're a first-time buyer, want to upsize/downsize or move closer to work or family, it's critical to stay within your budget and have an emergency fund.
