U.S. tariffs are shaking global and local markets (June 2025 - Novanews)
"My father gave me the greatest gift anyone could give another person: he believed in me." — Jim Valvano
Father’s Day is a time to celebrate the dads, mentors, and father figures who’ve helped shape who we are. While we honor them, the U.S. economy is going through some big changes, which we've summarized in this newsletter.
TODAY'S TOPICS
With the most homes on the market in 5 years, sellers might be forced to lower prices to attract buyers.
Businesses lose confidence in the U.S. economy.
China’s deflation and weak demand spark concerns.
Fiery jumps earn Tom Cruise a new world record.
QUIZ
1. In what state did the idea of Father’s Day first take off?
Washington
New York
Texas
2. Which iconic TV dad worked in a nuclear power plant?
Red Forman
Bob Belcher
Homer Simpson
REAL ESTATE
Current mortgage rates
30-year – 6.89%
15-year – 6.20%
Real estate news
With the most homes on the market in 5 years, sellers might be forced to lower prices to attract buyers. U.S. home listings value hits $698B, which is 20% more than a year ago. But prices remain high, and most buyers can’t keep up. Learn more
Buffalo, New York, tops the list of most competitive housing markets in 2025. It leads with 12.7 engaged home shoppers per listing and an average home value of $235,363. Hartford (Connecticut), Providence (Rhode Island), and Boston follow closely behind. Learn more
U.S. ECONOMY
Inflation
Current US inflation rate: 2.3%
Unemployment
Current US unemployment rate: 4.2%
FED rate
Fed funds interest rate: 4.33%
U.S. economy news
U.S. restaurants are facing staff shortages as stricter immigration enforcement adds pressure to an already tight labor market. Industry leaders warn that the shortage will likely drive up wages and make it harder to find qualified staff. Learn more
Businesses lose confidence in the U.S. economy. Just 27% of business executives feel good about the US economy over the next year, down from 47% last quarter and 67% at the end of 2024. The sharp drop shows that confidence is fading fast. Learn more
GLOBAL OUTLOOK
China’s deflation and weak demand spark economic concerns. China’s producer prices fell by 3.3% in May — the steepest drop in nearly two years — while consumer prices dropped again for the fourth month in a row, showing weak demand. Learn more
Japanese investors sold almost $10.4 billion worth of German bonds. This happened after Germany's borrowing costs jumped due to new debt rules, allowing more government spending. This was the biggest sell-off since 2014. Learn more
STOCK EXCHANGE
Stocks recommended by experts
Top 3 best-performing S&P 500 stocks of 2025 (year-to-date gains):
Palantir Technologies Inc. (PLTR) – 511.45%
GE Vernova Inc. (GEV)– 187.60%
Axon Enterprise Inc. (AXON) – 181.75%
Stock market news
More businesses are jumping into crypto, risking the market. More and more companies with no crypto background are loading up on bitcoin to boost their stock prices. Critics warn the trend could add new risks and worsen selloffs during crypto downturns. Learn more
COFFEE BREAK
Fun news
Fiery jumps earn Tom Cruise a new world record. While filming Mission: Impossible – The Final Reckoning, Tom Cruise completed 16 jumps with a parachute set on fire, earning a Guinness World Record for the most burning parachute jumps by an individual. Learn more
Question of the Month
Can you please explain how paying extra on my mortgage reduces the interest paid? Sincerely, Ana Z.
Hi Ana. Mortgage interest is charged based on the remaining debt. By paying extra on the mortgage, the interest is calculated based on the new remaining balance, and since the balance is lower, this equals less interest. For example: let's say you have a $380,000 mortgage with a 6.5% interest rate for a 30-year term. This scenario will give you a monthly mortgage payment of $2,401.86 - principal and interest only, this excludes escrow (home insurance + property taxes). Under this scenario, the total interest due at the end of 30 years would be $484,669.06.
But let's say that when you make your first month's payment, you decide to pay $1,000 extra to your regular payment of $2,401.86. This action reduces your debt more aggressively, reducing the total interest payable at the end of 30 years to $478,750.90.
This equates to a savings of $5,918.15 in interest simply by making an extra payment of $1,000 towards your principal reduction.
Investor of the month
Lukas Swisher
Lukas Swisher is a general partner at Coatue Management, where he helps lead investments in fast-growing tech companies. A Harvard graduate, his focus is on AI, software, and cybersecurity. He recently led investments in Flock Safety ($7.5B), Harvey ($3B), and Cyera ($1.4B). Swisher also oversaw Coatue’s backing of major startups like OpenAI, SpaceX, and Databricks — each now worth tens of billions. Learn more
QUIZ ANSWERS
Washington
Homer Simpson
CONTENT YOU CAN’T MISS
This month’s recommended book
by D. Acemoglu & J. A. Robinson
This bestselling book explores why some countries thrive while others remain trapped in poverty, arguing that inclusive political and economic institutions are the key to long-term prosperity.
Don't buy a house yet, prices will go down soon
Think it’s a bad time to buy a house? This video shows why it might actually be the smartest move.
Paying off your mortgage vs. investing
Should you pay off your mortgage faster or invest it? This video breaks it down with real numbers.
