Today's News You Need2Know

• Good jobs numbers help Wall Street gain

• Apple made more money than expected Q2, so their s …

• Trump looking to cut billions from budget in 2026

• Microsoft hikes Xbox prices worldwide

• 50-year-old Soviet spacecraft to return to Earth

Companies mentioned in today’s newsletter

$SPX ( ▼ 0.24% )  $MSFT ( ▲ 0.53% )  $NVDA ( ▲ 0.25% )  $JPM ( ▲ 0.06% )  $NVDA ( ▲ 0.25% )  $AAPL ( ▼ 1.77% )  

Good jobs numbers help Wall Street gain

Wall Street saw a significant boost late last week as the U.S. job market once again defied expectations, delivering stronger-than-anticipated numbers. The S&P 500 $SPX ( ▼ 0.24% ) climbed 1.6%, marking its ninth consecutive day of gains—the longest streak in 20 years. I just want to point out that last week, 80% of Cheddar readers said they expected markets to continue going down from there.

Tech stocks led the charge, with companies like $MSFT ( ▲ 0.53% ) Microsoft and $NVDA ( ▲ 0.25% ) Nvidia gaining 2.6% and 3%, respectively. Banks and financial firms also excelled, with JPMorgan Chase $JPM ( ▲ 0.06% ) up 2.4% and Visa $V ( ▲ 0.6% ) increasing by 1.3%.

April’s job report revealed 177,000 new positions, surpassing economist projections despite a slight slowdown from March. The data underscores continued resilience in employment, a key driver of consumer spending and economic growth. However, looming trade tensions and tariffs remain a pressure point. Economists fear the economic toll of heightened import taxes, which could hurt both businesses and consumers.

Despite uncertainty over trade policy, investor optimism remains buoyed by robust earnings and potential de-escalation in U.S.-China trade tensions. As we move forward, all eyes are on the Federal Reserve, employment trends, and the evolving tariff landscape. Nobody’s saying we’re out of the economic woods, in other words. But I’m sorta saying that, if you read between the lines. #NotFinancialAdvice

Apple made more money than expected Q2, so their stock went down

What’s this, another magnificent tech firm posting surprisingly resilient results?

Apple $AAPL ( ▼ 1.77% ) delivered a stronger-than-expected fiscal second-quarter performance last week, with earnings of $1.65 per share on revenue of $95.36 billion, surpassing analyst estimates of $1.62 per share on $94.19 billion in revenue. iPhone sales, a crucial revenue driver, climbed 1.9% to $46.84 billion, outpacing Wall Street’s expectations.

CEO Tim Cook emphasized Apple’s evolving supply chain strategy, including sourcing the majority of U.S. iPhones from India and iPads from Vietnam, as part of an effort to mitigate the impact of escalating tariffs tied to geopolitical tensions with China. Nevertheless, tariffs are expected to add $900 million to costs in the current fiscal quarter, underscoring the challenges of ongoing trade disputes. That’s why the company’s stock fell 2.5% on the news.

Apple: “We made $95 billion last quarter.”

Investors: “You’re worth 2.5% less than we thought before you told us tariffs are going to cost you less than $1billion.”

🤷🏻‍♂️

Today on the ‘gram: Trump ignores a question from Cheddar

Post of the day: Sawyer Hackett

Trump looking to cut billions from budget in 2026

President Donald Trump has unveiled his 2026 budget proposal, calling for $163 billion in cuts to non-defense programs. The budget reflects Trump’s vision of a bare-bones government, dramatically trimming domestic spending to its lowest level in the modern era. Key areas facing significant reductions include climate initiatives, education funding, health programs, and federal safety nets such as rental assistance.

While some Republicans, including House Speaker Mike Johnson, praised the budget as a necessary step toward fiscal discipline, opposition emerged from powerful members of his own party. Senators Roger Wicker, Susan Collins, and Mitch McConnell—all Republicans—took issue with the defense spending levels in Trump’s plan, accusing it of weakening military capabilities and relying on temporary measures rather than sustainable increases.

“President Trump successfully campaigned on a Peace Through Strength agenda, but his advisers at the Office of Management and Budget were apparently not listening,” Sen. Wicker said.

The budget’s domestic cuts have drawn fierce criticism from advocacy organizations. Programs impacted include the Centers for Disease Control and Prevention, Title I funding for disadvantaged schools, and clean energy initiatives. However, notable exceptions—such as the preservation of Head Start and advanced medical research funding—offered brief, hazy glimpses of bipartisan compromises.

Trump’s proposal sets a contentious tone for debates on the federal government’s role, priorities, and spending. But we all know how much he loves contention!

Should you check your 401(k) today?

👍️ 

Go for it.

Microsoft hikes Xbox prices worldwide

What the absolute potatoes is this?!

Microsoft $MSFT ( ▲ 0.53% ) has announced worldwide price increases for its Xbox consoles, accessories, and first-party games, citing “market conditions” and rising development “costs” as key factors.

The Xbox Series S, which initially debuted at $299.99 in 2020, now starts at $379.99 in the United States, while the more powerful Xbox Series X jumps from $499.99 to $599.99. Additionally, accessories like wireless controllers and headsets will see similar price adjustments, and new first-party games slated for release this holiday season will come with a higher $79.99 price tag.

The firm’s decision comes during a time of, let’s say, significant economic uncertainty, driven partly by tariffs introduced by the U.S. and retaliatory measures from countries like China. Industry economists warn these tariffs could further raise consumer prices for electronics that rely on global supply chains.

Microsoft isn’t alone. Competitors like Sony $SONY ( ▼ 0.89% ) recently increased PlayStation 5 prices in key international markets, while Nintendo $NTDOF ( ▼ 0.5% ) hinted at price adjustments for Switch 2 accessories despite maintaining its console’s $449.99 baseline price recently. Atari’s much beloved 2600 system remains a bargain at $75 on Ebay.

Quote of the Day: Susan Collins

50-year-old Soviet spacecraft to return to Earth

After an incredible 53 years in orbit, the Soviet-era Kosmos-482 spacecraft is finally set to reenter Earth's atmosphere in early May. Launched on March 31, 1972, the spacecraft was originally intended to reach Venus as part of the Soviet Union's ambitious space program. It didn’t. A timer anomaly stranded it in Earth orbit, and the failed mission’s payload broke into pieces days after launch, with some fragments falling over New Zealand, killing many hobbits. Also, the Soviet Union no longer exists as a country following the Chernobyl disaster and, let’s say, a few other mishaps.

Kosmos-482 has remained a silent relic of the Cold War–era space race, where failures, among other things, were often shrouded in secrecy. Now, Vladimir Putin’s opposition leaders die in Siberian prisons, or fall from hotel balconies, and there’s little serious effort to cover such things up.

Experts predict the spacecraft, weighing roughly 500 kilograms, will make an uncontrolled reentry, albeit posing little risk to people on the ground. Intriguingly, its Venus lander may survive the fiery descent, as it was originally engineered to endure the harsh atmospheric conditions of Venus, though its age and reentry trajectory add layers of uncertainty, not to mention the increasing toxicity of Earth’s own atmosphere over the last five decades.

If you see a 53-year-old object hurtling towards you from the sky, it’s not Dwayne “The Rock” Johnson, Snoop Dogg, of Jennifer Garner. It’s Kosmos-482! (Look out!)

Poll of the Day: Xbox Drama

Poll Results: Is it a Trump Slump or a Biden Overhang?

We asked: Who can we credit with today's U.S. economy?

You answered:

🟩🟩🟩🟩🟩🟩 It was Trump's bump, and it's Trump's slump (1101)

⬜️⬜️⬜️⬜️⬜️⬜️ It's a Biden overhang! We've got to get over it! (36)

1137 Votes, via @beehiiv polls