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😵‍💫 Microsoft Cuts MORE Jobs

+ US & Vietnam Trade Deal Done Ahead of Tariff Deadline

July 02, 2025

Good afternoon! Jaguar’s electric rebrand hit the gas before the cars were even built—and now the wheels are coming off. European sales nosedived 97.5% year-over-year, with just 49 cars sold in April, as dealerships sat empty and the brand’s $200K flagship EV remained MIA. Critics say the company’s splashy campaign featuring rainbow slogans and runway-style visuals missed the mark with its core buyers.

As if the sales collapse weren’t enough, Jaguar’s sister brand Range Rover is now under federal investigation for steering components breaking away from the brake assembly. The brand’s transition away from gas models left it with no inventory, no EVs on lots, and a growing identity crisis. When your cars vanish and your ads go viral for all the wrong reasons, it’s tough to sell anything at all.

MARKETS

*Stock data as of market close*

  • Trade Winds Push Stocks Higher: Markets climbed after Trump unveiled a trade deal with Vietnam, boosting confidence across sectors. The S&P 500 and Nasdaq hit fresh records, while energy and materials led the charge.

  • Jobs Data Throws Cold Water: Still, a surprise dip in private payrolls raised eyebrows about economic strength. Despite that, investors kept riding the trade news high at least for now.

STOCKS
Winners & Losers

What’s up 📈

  • BitMine Immersion Technologies surged 27.17%, MARA Holdings gained 13.38%, and CleanSpark climbed 12.64% after BitMine announced a pivot from bitcoin mining to ethereum. ($BMNR, $MARA, $CLSK)

  • Verint Systems jumped 15.33% following reports the company is in acquisition talks with private equity firm Thoma Bravo. ($VRNT)

  • Rigetti Computing rose 15.45% after Cantor Fitzgerald initiated coverage with an overweight rating, highlighting the long-term potential of quantum computing. ($RGTI)

  • Jack in the Box spiked 7.86% after activist investor Biglari Capital disclosed a 10% stake in the fast-food chain. ($JACK)

  • Robinhood climbed 6.12% on speculation it could be added to the S&P 500 following the Juniper Networks acquisition. ($HOOD)

  • Tesla gained 4.97% after reporting second-quarter deliveries that were roughly in line with expectations. ($TSLA)

  • Constellation Brands added 4.48% after the beverage company reaffirmed its fiscal 2026 forecast despite tariff-related headwinds. ($STZ)

  • On Holding climbed 4.38%, while Nike rose 4.06% after a new trade deal with Vietnam provided tailwinds for companies with Southeast Asian manufacturing. ($ONON, $NKE)

What’s down 📉

  • Centene plunged 40.37% after withdrawing its 2025 guidance and warning of lower marketplace enrollment and higher Medicaid costs. ($CNC)

  • Molina Healthcare dropped 21.97% and Elevance Health fell 11.50% as Centene’s warning triggered a broad selloff in health insurers. ($MOH, $ELV)

  • UnitedHealth Group sank 5.70% and CVS Health declined 4.28% on spillover from Centene’s weak guidance and enrollment data. ($UNH, $CVS)

  • Intel slid 4.25% after reports emerged that it may shift its foundry strategy. ($INTC)

TECH
Microsoft Lays Off 9,000 Employees to Accelerate AI Investment Strategy


Microsoft kicked off its new fiscal year with a tough headline: 9,000 more job cuts, marking its second major layoff wave of 2025. That brings the company’s total cuts to 15,000 roles in just two months. The latest layoffs affect less than 4% of Microsoft’s global headcount and will span geographies, teams, and tenure.

While gaming was hit (again), insiders say the broader goal is removing layers of management and streamlining operations to make Microsoft more agile. It’s a common theme across the tech world this year: leaner orgs, flatter structures, and fewer titles between entry-level coders and C-suite execs.

AI Is Eating the Budget

Microsoft’s pivot isn’t just about cost-cutting — it’s about funding a full-blown AI arms race. With tens of billions earmarked for data centers, model training, and new AI infrastructure, Microsoft is trimming traditional roles to support its big AI bet. CFO Amy Hood previously told investors that the company is focused on “building high-performing teams” and “increasing agility” — which sounds great in earnings calls, but usually comes with pink slips.

This week’s move follows prior cuts to Xbox and software teams, and echoes broader tech trends: Amazon, Autodesk, Chegg, CrowdStrike, and others have all trimmed staff this year while investing more heavily in AI-powered automation.

Investors Shrug: Wall Street didn’t flinch. Microsoft shares dipped just 0.2% Wednesday, holding near record highs after a strong Q1 earnings beat and upbeat Azure guidance. The company now employs about 213,000 people, down from 228,000 a year ago but remains one of the most profitable firms in the S&P 500, with nearly $26 billion in net income last quarter.

Bottom line: Microsoft isn’t retreating — it’s reallocating. In this new phase of the AI revolution, jobs aren’t vanishing for cost reasons alone. They’re being replaced by servers, models, and code that never takes PTO.

NEWS
Market Movements

  • 👟 Nike rallies on new US-Vietnam trade deal: Nike stock climbed as much as 4% after Trump announced a tariff-laden trade pact with Vietnam that spares key US retailers. With nearly half its shoes sourced from Vietnam, Nike stood to lose big if reciprocal tariffs had kicked in — but the last-minute agreement provided relief ($NKE).

  • 💰 Coinbase expands with Liquifi acquisition: Coinbase jumped nearly 6% after acquiring token management startup Liquifi. The deal strengthens Coinbase’s token issuance and compliance tools as it pushes deeper into crypto infrastructure. It’s the company’s third major acquisition of 2025 ($COIN).

  • 🩺 Centene collapses on ACA cost shock: Centene withdrew its 2025 outlook after revealing ACA enrollees are using more health services than expected. That surprise sent the stock tumbling over 40%, dragging Oscar Health and Molina Healthcare with it. The news also intensified fears over GOP plans to slash Medicaid funding ($CNC).

  • 🏥 Health insurer stocks crater on policy and cost risks: Molina Healthcare dropped 22% and Oscar Health fell nearly 19% as ACA and Medicaid pressures mounted across the sector. UnitedHealth also slipped as scrutiny builds over Medicare Advantage costs, fraud probes, and executive turmoil following the murder of its insurance chief ($MOH).

  • 📉 Intel sinks on potential manufacturing shift: Intel shares dropped over 4% on reports its new CEO may overhaul its chip manufacturing business, potentially incurring billions in write-offs. The shift aims to compete with TSMC but spooked investors wary of another costly turnaround attempt ($INTC).

  • 🏦 Ripple applies for national bank license: Crypto payments firm Ripple filed for a U.S. national banking charter to bring more oversight to its stablecoin, RLUSD. It also requested a Federal Reserve master account for direct reserve access, signaling a broader crypto-to-finance convergence. Circle submitted a similar application earlier this week ($XRP)

  • 📉 Tesla reports second straight drop in deliveries: Tesla delivered 384,122 vehicles in Q2, down 14% from a year ago and marking the second straight quarterly decline. The company cited intense competition from Chinese EV makers and reputational issues tied to Elon Musk’s politics. Still, the report came in above bearish forecasts and lifted shares slightly on the day ($TSLA).

  • 🚀 Robinhood hits $100 as tokenized assets fuel rally: Robinhood stock hit $100 for the first time as it surged 30% since being snubbed from the S&P 500. The rally comes after the company announced crypto staking and tokenized shares of OpenAI and SpaceX for European users. Robinhood is also quietly building its own blockchain to enable 24/5 trading ($HOOD).

  • 💸 Bezos unloads $737M in Amazon stock during wedding week: Jeff Bezos sold 3.3 million Amazon shares for $736.7M under a March trading plan as he celebrated his wedding in Venice. While it marks his first sale of the year, Bezos has given nearly 930,000 shares to nonprofits in 2025. He often sells to fund his space company, Blue Origin ($AMZN).

  • 🎶 Netflix eyes Spotify partnership: Netflix is holding talks with Spotify to co-produce live music award shows and concerts as part of its strategy to boost advertising revenue and subscriber growth through expanded live TV content ($NFLX, $SPOT).

  • 🚗 Xpeng posts strong deliveries: Xpeng posted 34,611 June deliveries — marking 8 straight months above 30K despite fierce price competition while rivals saw softer momentum as BYD maintains market dominance ($XPEV, HKG:1211).

  • ✉️ Grammarly buys Superhuman: Grammarly has acquired email startup Superhuman, last valued at $825M, to boost its AI productivity suite as it deploys $1B in new funding.

TRADE
US & Vietnam Trade Deal Done Ahead of Tariff Deadline


With just seven days left before his tariff pause expires, Trump unveiled a fresh trade agreement — this time with Vietnam. The deal is the third to be announced since April, following similar pacts with the UK and China. It slaps a 20% tariff on Vietnamese imports (down from the 46% threat earlier this year) and introduces a 40% tariff on transshipped goods — a workaround where Chinese components are lightly assembled in Vietnam before hitting U.S. ports.

In exchange, Vietnam pledged to eliminate all tariffs on U.S. exports. That opens the door for more American cars, ag products, and maybe even a few F-150s... though the average income in Vietnam suggests scooters still have the edge.

Apparel Stocks Got a Boost: Markets welcomed the detente. Apparel companies with major production in Vietnam rallied: Nike jumped 4.06%, ON Holdings gained 2.85%, and Columbia Sportswear climbed 1.45%. Investors clearly prefer a good-enough handshake deal to no deal at all.

Why Vietnam Matters

Vietnam is now the third-largest source of America’s trade deficit, shipping $137B worth of goods to the U.S. last year, mostly in textiles, electronics, and sneakers. That number surged in May as exporters rushed to beat the July 9 tariff clock.

But this is also about geopolitics: Vietnam is a key U.S. counterweight to China in the region. The Trump team has tried to balance tough trade policy with strategic diplomacy even as the Trump Organization pushes ahead with a $1.5B luxury resort in Vietnam.

What’s Next? Despite the splashy Truth Social announcement, no formal term sheet or executive order has been filed yet — meaning the fine print is still TBD. With only a week left before the tariff storm returns, expect a few more late-night negotiations (and tweets) before July 9.

Calendar
On The Horizon

Tomorrow

Thursday’s warm-up act includes jobless claims and the services PMI but Friday’s main event is the nonfarm payrolls report, and it could move markets in a big way. Economists are bracing for a slowdown, expecting just 115,000 new jobs in June, down from May’s 139,000. Unemployment is also forecast to tick up to 4.3%. And after today’s ADP report showed private payrolls actually shrank for the first time in over a year, Wall Street’s feeling twitchy.


Here’s the twist: a weaker report might be exactly what the Fed needs to start easing. If job growth stumbles, it could finally justify cutting rates to support a cooling labor market. Powell’s watching closely and tomorrow’s numbers might tip the scale.

Markets Are Closed July 4th and Half a day tomorrow so there will be limited news. We shall see you Monday!! Take some time off and come back ready to kill the markets.

NEWS
The Daily Rundown

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