🔥 Stocks And Crypto Prices Crater As A Result Of Trump’s Tariff Fight With Neighbors Mexico And Canada

In today’s newsletter we discuss stocks and crypto prices crater as a result of Trump’s tariff fight with neighbors Mexico and Canada, Starbucks introduces new Valentine’s Day drinks, Beyoncé announces Cowboy Carter Tour, OpenAI partners with the U.S. National Laboratories, pending home sales drip as mortgage interest rates rise, and the LA Lakers’ get Luka Doncic in a complicated NBA trade.

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WHAT WE’RE READING

🔥 Stocks And Crypto Prices Crater As A Result Of Trump’s Tariff Fight With Neighbors Mexico And Canada

Over the weekend crypto prices cratered from all-time highs, as the Trump administration instituted their promised tariffs against our friendly neighbors Mexico and Canada.

On Monday morning Dow futures were down 600 points before the market open, foretelling an ominous opening to the trading week that is sure to be rocky.

Historically February ushers in a Bull market, but tell that to the markets, or better yet tell that to the Trump administration who has thrown a wrench into the markets by imposing tariffs of 25% on Mexico and Canada, and 10% on China over the weekend.

Welcome to higher prices, increased inflation at a time when the inflation rate had been trending downward, potentially a full on trade war that will disrupt global supply chains, all resulting in a  slow down of the global economy.

You know what comes after that?

Global recession.

Don’t believe me? History doesn’t lie. Just ask J.P. Morgan.

Is this what the American people wanted when they cast their votes in November?

To quote JD Vance over the weekend “buckle up”.

☕ Business

Starbucks just added five new drinks to their menu at a time when the company has shared plans to trim their menu by 20% in an effort to speed up the delivery of drinks to customers in under 4 minutes.

The new drinks include:

• Chocolate-Covered Strawberry Crème Frappuccino

• Chocolate Hazelnut Cookie Cold Brew

• Blackberry Sage Refresher

• Blackberry Sage Lemonade Refresher

• Midnight Drink

These drinks are available for a limited time for Valentine’s Day.

🎤 Entertainment

Over the weekend Beyoncé announced the worst kept secret in the entertainment world - that she would be doing a Cowboy Carter Tour.

There were a few catches with the announcement. First, no tour dates or locations were announced. Odd, but not completely new territory for big concert tours. And second, it hasn’t been revealed if this is only a U.S. tour, or if Beyoncé will be traveling internationally as she did with her Renaissance World Tour.

🤖 AI

OpenAI has partnered with the U.S. National Laboratories on nuclear weapons research.

What could possibly go wrong here?

I can’t shake the feeling I’ve seen this movie before!

Oh yea, Terminator 3: Rise of the Machines!

OpenAI says they will be working with the U.S. National Laboratories “using its latest artificial intelligence models for scientific research and nuclear weapons security.”

Once you open that door, be careful what comes crawling in.

🏡 Real Estate

Those pesky mortgage rates are affecting pending home sales, which saw a big drop in December as rates rose back over 7% again.

Rising interest rates aren’t a good thing for the housing marketing, and they can have a negative effect on pending home sales, including:

• Increased borrowing costs: Higher interest rates translate to higher mortgage payments. This reduces affordability, making it more challenging for potential buyers to qualify for a mortgage or to afford the monthly payments on a desired property.

• Decreased demand: As affordability decreases, the pool of potential buyers shrinks. This can lead to a decrease in demand for homes, which in turn can slow down the pace of pending home sales.

• Price adjustments: In response to decreased demand, sellers may need to lower their asking prices to attract buyers. This can lead to a moderation or even a decline in home prices in some markets.

• Buyer hesitation: Potential buyers may become more hesitant and adopt a "wait-and-see" approach when interest rates are rising.⁶ They might postpone their home purchase decisions in anticipation of rates stabilizing or potentially decreasing in the future.

Let’s not forget that the impact of rising interest rates on pending home sales can vary based on a number of things including::

• Overall economic conditions: A strong economy with rising wages can help offset the effects of higher interest rates to some extent.

• Housing supply: In markets with limited housing inventory, demand may still remain relatively strong despite rising interest rates.

• Local market dynamics: Specific local market conditions, such as affordability levels and buyer preferences, can also influence how pending home sales are affected by interest rate changes.

What is the big take away from rising interest rates on the housing market?

Basically rising interest rates usually have a dampening effect on pending home sales by reducing affordability and demand.

So if you’re looking to buy a new home expect your mortgage to be a little more expensive, and if you’re looking to sell your home it could sit on the market a bit longer and you might not get the price you’re looking for as a result of rising interest rates and their effect on the housing market.

🏀 Sports

Over the weekend the basketball world was shaken with the announcement of the LA Lakers’ trade for Luka Doncic.

This was a complicated deal between four teams: LA Lakers, Dallas Mavericks, Utah Jazz, and LA Clippers.

In the deal the LA Lakes got Luka Doncic, Maxi Kleber and Markieff Morris, while the Dallas Mavericks got Anthony Davis, Max Christie and the LA Lakers' 2029 first-round draft pick. The Utah Jazz received Jalen Hood-Schifino, the LA Clippers' 2025 second-round pick and the Mavericks' 2025 second-round selection.

You know who wasn’t consulted about the trade beforehand? LeBron James.

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irl Media NEWSLETTER is written, edited, and published by Chris Thompson.