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Matt Davis — Need2Know Chedditor

News you Need2Know

• Stock market opens at White House

• Microsoft cuts 3,000 jobs in its Xbox division

• NASDAQ rises in big week for tech stocks

• EV batteries are lasting longer than expected

• Tobacco firms are Zyn-ing to the bank

• Poll of the day: To EV? Or not to EV?

What’s the stock market up to, eh?

$SPX ( ▲ 0.72% )  $DJI ( ▲ 0.29% )  $NDX ( ▲ 1.59% )  

Companies mentioned in today’s newsletter

$DELL ( ▲ 4.43% )  $MSFT ( ▼ 0.96% )  $NFLX ( ▼ 2.1% )  $CART ( ▲ 3.43% )  $PM ( ▲ 1.37% )  $RAI ( 0.0% )  $TSLA ( ▲ 6.69% )  $NSANY ( ▲ 2.84% )  

Stock market opens at White House

In a historic first, the opening bells for both the New York Stock Exchange and Nasdaq were rung directly from the Oval Office on Monday. Why? Because President Donald Trump decided the best way to celebrate the official launch of Trump Accounts — his new federally backed children's savings program — was to bring Wall Street right to his desk.

Seeded with a $1,000 Treasury deposit for eligible young children, the White House boldly predicts these assets could swell to seven figures by the time kids reach their late 20s. Realistically, they’ll be worth $15k in 29 years according to my trusty compound interest calculator. But the idea is to stimulate a savings habit.

Gathering a crowd of reporters, officials, and toddlers in the Oval Office, Trump credited the booming stock market under his presidency for the program's massive potential. "They can have a lot of money," he promised, adding, "It’s going to go up. I think the market’s going to go through the roof."

Trump also personally thanked big-name donors like Michael and Susan Dell of Dell Technologies $DELL ( ▲ 4.43% ) , who contributed $6.25 billion to the savings program. He used the moment to offer some helpful and totally unbiased consumer advice: "Go out and buy a Dell computer," Trump suggested, adding, "He’s not doing it for that, but I’ll bet his business brand has gotten even bigger."

And as for why the program shares his name? Trump admitted it wasn't his idea, but he was told it would "sell better.”

Quote of the day

Microsoft cuts 3,000 jobs in its Xbox division

Remember when everyone was stuck inside during the pandemic, and gaming companies assumed we would never touch grass again? Well, the bill has arrived. Microsoft $MSFT ( ▼ 0.96% ) is hacking off 3,200 jobs — roughly one-fifth of its entire Xbox division.

It turns out that spending billions on Activision Blizzard to feed Game Pass, which is Microsoft's Netflix-style $NFLX ( ▼ 2.1% )  subscription service designed to let gamers stream or download a rotating library of titles, didn't magically summon subscribers. The tech giant confidently projected Game Pass would reach a whopping 77 million subscribers this year. Instead, they are sitting on a measly 30 million. If that wasn't embarrassing enough, Xbox revenue fell 5% last quarter, and its profit margin plummeted to a depressing 3%.

Enter newly minted Xbox Chief Executive Asha Sharma. Despite having zero video game experience — her previous gig was running Instacart $CART ( ▲ 3.43% ) — she’s here to deliver the tough love. In a Monday staff memo, Sharma declared, “Our business today is not healthy” and admitted Game Pass “did not grow at the pace we expected.” Her grand solution? “We must reset XBOX.”

And how do you reset a multi-billion-dollar gaming empire? By turning it off and on again, obviously laying off thousands, spinning off or selling game development studios, raising console prices due to memory chip shortages, and keeping new Call of Duty games off the subscription service so gamers actually have to pay full price. Instead of risking money on new blockbusters, they are doubling down on Candy Crush and trying to recruit independent developers to use their PC digital store.

Best of luck to those who are losing their jobs.

NASDAQ rises in big week for tech stocks

Tech stocks are kicking off the week on a high note, with the NASDAQ composite rising nearly 1% $NDAQ ( ▼ 0.22% ) as optimistic traders eagerly brush off the AI anxieties that have jolted the market in recent weeks. This newfound confidence is about to face a series of trials that will test the market's true appetite for the AI trade over the coming week.

First up is South Korean chip giant Samsung $SSNLF ( ▲ 116.8% ) , which is scheduled to share its highly anticipated second-quarter update. Just a few days later, South Korean chipmaker SK Hynix will launch its colossal $29 billion U.S. stock-market listing, which is set to be one of the largest share sales in history. Meanwhile, SpaceX’s $SPCX ( ▼ 0.98% ) fast-track entry into the Nasdaq-100 is poised to spark an immediate flurry of trading.

Outside of tech, macroeconomic shifts are keeping investors on their toes. On Wednesday, the Federal Reserve will release minutes from its first meeting under Chairman Kevin Warsh, which traders will parse for interest rate clues. Oil prices are also edging lower after OPEC+ agreed to raise production for a fifth straight month.

It is going to be a very busy week on Wall Street.

Song of the Day: Goldie Boutilier, ‘How to be a lover’

“How to be a lover” by Goldie Boutilier is a triumphant, ‘80s-inspired noir-pop masterpiece, reclaiming feminine control. There’s a rich, cinematic atmosphere. There’s retro styling. There’s bold, vulnerable storytelling. I could play it on repeat all day!

EV batteries are lasting longer than expected

Are you terrified that buying an electric vehicle means you’ll soon be stuck with a dead battery and a massive repair bill? You aren't alone. A survey reveals that the fear of having to pay for a costly battery replacement — which can run anywhere from $5,000 to $16,000 — is the number one reason buyers steer clear of EVs. As Jessica Caldwell of analyst firm Edmunds told the Wall Street Journal, “There still is a lot of trepidation amongst buyers.”

But modern EV batteries are quietly proving the skeptics wrong. Just look at Richard Symons and his 5-year-old Tesla $TSLA ( ▲ 6.69% ) , affectionately named “Miles,” which has logged an incredible 247,000 miles. Symons, who recently finished a 260-mile road trip across England on a single charge, reports, “They are proving themselves to be exceptionally reliable.”

So, why the bad reputation? Early EVs, like the 2010 Nissan $NSANY ( ▲ 2.84% ) Leaf, lacked basic liquid-cooling systems and became infamous for wearing down quickly. Since then, improvements in battery chemical contents, thermal regulation, and advanced management systems have completely changed the game. In fact, modern EVs built from 2022 onwards have a microscopic 0.3% battery replacement rate. Even after five years on the road, the average EV retains 95% of its original range.

Of course, batteries aren't completely foolproof. If you frequently fast-charge with high power, your battery loses its range, on average, at twice the rate of slower charging. Extreme hot or cold weather also temporarily reduces range. These realities, combined with the Trump administration ending EV subsidies and regulations, have caused U.S. EV sales to plummet 25% so far in 2026.

However, battery prices have plunged more than 90% since 2010, and modern EV lifespans now rival those of traditional combustion engines. Analysts expect the U.S. EV market share to nearly double to 11% by 2030. As market analyst Ken Yannacci explains, “As EVs get a reputation for having that battery longevity, that’s definitely gonna help.”

Tobacco firms are Zyn-ing to the bank

With domestic cigarette sales dying, Big Tobacco has found its shiny new savior: "Lip pillows.”

Yes, tobacco-free nicotine pouches are the latest craze, and companies are laughing all the way to the bank as global pouch sales are projected to skyrocket to over $40 billion by 2033.

No wonder Wall Street is buzzed. Garrett Nelson, an equity analyst at CFRA, told the New York Times that tobacco giants “are now viewed as growth companies, and there is a lot of optimism surrounding products like Zyn.” 

It helps that local governments are rolling out the red carpet. Colorado Governor Jared Polis, for instance, happily defended handing over $4.5 million in state tax credits for a massive new $600 million manufacturing plant in Aurora. Bragging about his state's progressive catalog of substances, Polis declared, “We were the first state to legalize marijuana... Of course, we want safer alternatives to smoking, like Zyn, to be in our state.”

The federal government is also getting in on the action. In May, the Food and Drug Administration issued new guidance relaxing regulations on nicotine pouches, conveniently arriving just a week after tobacco giant Reynolds American $RAI ( 0.0% ) donated $5 million to a Trump-backed Super PAC. Even U.S. Health Secretary Robert F. Kennedy Jr. has endorsed the trend, calling pouches “probably the safest way to consume nicotine” while openly acknowledging that he uses them himself.

But public health experts are having a massive comedown. Dr. Gina Kruse of the University of Colorado Anschutz warns that pouches are acting as an “on-ramp” to lifelong nicotine dependence, especially with sweet flavors designed to appeal to youth. Meanwhile, Dr. Sven Jordt of Duke University School of Medicine is sounding the alarm over a “quantum jump” in pouch potency as companies boost nicotine levels up to 15 milligrams per pouch. Jordt warns that Sweden’s shift to pouches has created “an epidemic of oral tobacco use, and I think that might, unfortunately, be the future in the United States.”

While pouches may expose you to slightly fewer carcinogens than smoking, they’re not harmless, doctors say.

Free yourself from advertising forever!

Should you check your 401(k) today?

👎️ 

Still a no, I’m afraid. But yesterday was better than it has been recently.

Poll of the day: To EV? Or not to EV?

Poll of the day: You’re $1.50 hot dog people

We asked: What's a reasonable price for a hot dog?

You answered:

🟩🟩🟩🟩🟩🟩 $1.50 (The Costco Safe Haven): Inflation may have pushed gas prices up to a painful $3.85 a gallon, but the hot dog combo remains a sacred sanctuary of economic stability. I refuse to pay more for a frank than a gallon of fuel! (287)
🟨⬜️⬜️⬜️⬜️⬜️ Almost $5 (The Coney Island "Wealth Tax"): I am paying for the ambiance of rickety rollercoasters and the historic privilege of eating a Nathan's frank on the beach. I will happily weep into my mustard as long as I get to watch the eating contest. (44)
⬜️⬜️⬜️⬜️⬜️⬜️ My entire paycheck, notch by notch: Honestly, just take my credit card. I've accepted that a basic tube of ground beef is now a luxury asset class. (39)
⬜️⬜️⬜️⬜️⬜️⬜️ Free: I will simply hover around my neighbor's grill until they hand me a burger. If I didn't pay for the raw materials, did inflation really happen? (43)
413 Votes via @beehiiv polls

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