Dow Jones futures dropped sharply on Thursday, with investors growing increasingly uneasy about the ongoing conflict between Israel and Iran and the possibility of direct US military involvement. 

At the time of publication, Dow futures were 0.46% down, hovering around 42,000 level. The futures of other indices like S&P 500 and Nasdaq also traded in red on Thursday.

The dip came amid persistent inflation risks in the US and signals from the Federal Reserve that it will keep policy restrictive for longer, adding to the market concerns.

US President Donald Trump made some vague remarks on Wednesday around possible US strikes on Iran, which fed the anxiety of investors and pushed up the uncertainties in the market. 

These developments have triggered a classic flight to safety, with investors pulling back from equities and seeking refuge in assets like the US dollar. 

Fed holds rates, but inflation fears persist

The US Fed’s latest decision has only added to market jitters. In its June 2025 policy meeting, the central bank kept its benchmark interest rate unchanged at 4.25%-4.50%. 

While the decision was widely expected, the Fed’s outlook around inflation didn’t go well with the investors. 

Federal Reserve Chairman Jerome Powell called the current policy “modestly restrictive” and stressed the need to keep rates higher until inflation comes back down to target levels. 

The market sentiment may be dampened further as the central bank raised its interest rate forecasts for 2026 and 2027, now projecting rates of 3.6% and 3.4%. 

This seems to be a clear sign that borrowing costs could stay elevated longer than previously thought. 

Holiday closure and thin trading

US stock markets are closed on Thursday for Juneteenth, which meant trading volumes were lighter than usual and price moves in futures were more dramatic.

The investors kept a close watch on global developments, knowing that any major news could set the tone when markets reopen. With fewer traders in the market, any big geopolitical news or economic data may have an even bigger impact, making sharp swings more likely. 

Global ripples: Not just a US story

The risk-off mood wasn’t just limited to the US markets as investors across the world are holding their breath amid developing geopolitical situation. 

Asian markets slipped on Thursday as benchmark indices shed gains accumulated over the week. Japan’s Nikkei slipped 1.02% down while Hong Kong’s Hang Seng index dropped 1.48%. 

The traders remained cautious in India as both Sensex and Nifty 50 remained flat throughout the day and ended on a muted note. 

Meanwhile, both oil prices and the US dollar moved higher, reflecting a global rush to safe-haven assets as uncertainty spread across markets. 

With the situation still evolving, investors everywhere remained on high alert, watching closely for any signs of escalation that could ripple through the world economy. 

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The United States continued to dominate the global wealth rankings in 2024, adding more than 379,000 new millionaires to bring its total to 23.8 million, according to a new report released by UBS.

The country now accounts for nearly 40% of the world’s millionaire population, reinforcing its position as the leading generator of private wealth globally.

UBS said the US surge was supported by a strong 2024 for Wall Street and a stable dollar through most of the year.

The number of American millionaires rose 1.5% year-on-year, with an average of more than 1,000 new millionaires created each day.

Mainland China retained the second spot, registering a 2.3% rise to 6.3 million millionaires.

Turkey posted the highest percentage increase, with its millionaire population rising 8.4% to 87,000.

Overall, the global number of millionaires rose by more than 684,000 to nearly 60 million, aided largely by rising real estate values.

Dollar volatility and trade uncertainty weigh on 2025 outlook for US wealth creation

Despite the gains in 2024, 2025 has begun on shakier footing.

The US dollar has fallen around 9% so far this year, amid concerns over President Donald Trump’s renewed trade wars and fears of a domestic slowdown.

These developments have triggered volatility in financial markets and left economists cautious.

UBS economist James Mazeau told CNBC it’s too early to say whether US household wealth will grow at a slower rate this year. 

A weaker dollar actually lifts wealth in non-dollar countries. The US might not lose wealth in nominal terms, especially if equities recover.

He also noted that US housing prices have remained resilient and stocks could finish 2025 higher than current levels.

“This year could be lower than last year, but it doesn’t mean we’ll have a reversal in fortune and see negative wealth creation,” he said.

I don’t think the engines of growth are dead in the United States — far from it.

Wealth remains concentrated, even among billionaires

While the millionaire class continues to grow, wealth remains heavily concentrated.

UBS found that an estimated 60 million millionaires worldwide hold $226.47 trillion combined, which is nearly half of the world’s global wealth.

Out of these, just 2,860 individuals qualify as billionaires, controlling $15.7 trillion in assets.

The very top 15 centibillionaires, each worth over $100 billion, hold a combined $2.4 trillion.

Even among billionaires, Mazeau said, inequality is notable.

“We do see that there is wealth concentration or, I would say, wealth inequality, even amongst billionaires,” Mazeau said.

He attributed most of the concentration to the outperformance of the tech sector and the rise of “mega tech entrepreneurs.”

Aldo, while the United States accounts for nearly 40% of the world’s millionaires, Luxembourg and Switzerland have a greater density of wealth.

In both nations, more than one in seven adults holds assets worth at least $1 million, according to UBS.

Some regions, including Japan, saw declines in millionaire numbers, with Japan losing 33,000 due to demographic shifts.

Meanwhile, Singapore, Qatar, Greece, and Poland added significantly to their ranks, while billionaire wealth dropped sharply in the Netherlands and Uruguay.

“Everyday millionaires” outpace billionaires in total wealth

UBS emphasized that most of the wealth gains are happening in the middle tiers.

The number of individuals with between $1 million and $5 million—the so-called “everyday millionaires”—has quadrupled since 2000 and now totals about 52 million.

Together, they control more wealth than all the billionaires in the world.

“It is often overlooked how much wealth is rising and going toward the middle of the pack,” said Mazeau.

He added that limited data on those in the $50 million to $1 billion range distorts public perceptions of wealth inequality.

With global wealth expanding and new trends emerging in asset ownership, UBS expects the composition of the world’s wealthy to keep evolving—even if volatility and policy shifts create bumps along the way.

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X, the social media platform formerly known as Twitter, is preparing to allow users to conduct investment and trading activities directly on its app, according to its chief executive, Linda Yaccarino.

Speaking at the Cannes Lions advertising festival, Yaccarino said the company is advancing its ambitions to transform the platform into a comprehensive financial ecosystem, echoing owner Elon Musk’s vision of an “everything app.”

“You’ll be able to come to X and be able to transact your whole financial life on the platform,” Yaccarino told the Financial Times.

“And that’s whether I can pay you for the pizza that we shared last night or make an investment or a trade. So that’s the future.”

Musk’s superapp plans

As part of this expansion, Yaccarino revealed that X is exploring the launch of its own credit or debit card.

While she did not provide a timeline, she indicated that such a product could be introduced as early as this year.

The move is consistent with Musk’s stated aim of replicating aspects of China’s WeChat, a multipurpose platform that integrates messaging, payments, and e-commerce.

Musk acquired Twitter in 2022 for $44 billion and has since been repositioning the company under its new identity, X.

X had earlier announced plans for a peer-to-peer payment service called X Money.

The service is expected to launch first in the United States in partnership with Visa, and later expand to other markets.

Yaccarino said X Money would allow users to store funds, tip content creators, and purchase merchandise directly within the app.

Challenges remain for X

X’s expansion into financial services is likely to trigger significant regulatory scrutiny.

Offering investment and trading capabilities would require compliance with a range of financial regulations, including those governing licensing, anti-money laundering, and consumer protection.

The company has not disclosed how it plans to navigate these challenges or which regulatory bodies it is engaging with.

The push into financial services comes as X continues to grapple with the fallout from Musk’s controversial takeover.

Following the acquisition, many advertisers suspended spending on the platform, citing concerns over content moderation and the risk of their ads appearing next to objectionable material.

Advertising has historically accounted for the bulk of X’s revenues, and the company has struggled to stabilise its financials in the wake of the exodus.

Yaccarino rejected a recent Wall Street Journal report that alleged X threatened to sue brands that did not resume advertising.

The report claimed companies such as Verizon and Ralph Lauren returned to the platform after receiving legal threats.

Yaccarino called the report “hearsay” and questioned its credibility.

“It’s unnamed sources, random third-party commenters,” she said in the interview.

In response to the advertising pullback, X filed a federal antitrust lawsuit last year against the Global Alliance for Responsible Media (GARM), a coalition of brands and advertising agencies.

The suit accuses the group of orchestrating what X described as an “illegal boycott” under the guise of promoting online safety.

X has since amended the lawsuit, removing some companies from the complaint.

Unilever, for instance, was dropped from the case after it resumed advertising on the platform in October 2023.

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Berkshire Hathaway shares (BRK.A) have fallen nearly 10% since its CEO, Warren Buffett, announced his decision to step down from the company.

Berkshire tumbles after the announcement

Since May 3, the date when Buffett announced his plans to transition from CEO, the conglomerate’s stock has experienced a decline exceeding 10%. 

This is in contrast to the S&P 500 index, which has gained 5% in the same period. 

Before the announcement, Berkshire Hathaway was outperforming the markets with a 20% gain in the year till then against the S&P 500’s 3% decline. 

Buffett Premium 

Part of this sell-off is attributed to what is often termed the “Buffett premium.” 

This concept refers to the additional value investors have historically been willing to assign to Berkshire Hathaway’s shares, a valuation underpinned by the billionaire’s unparalleled investment track record and his exceptional acumen in capital allocation. 

As the Oracle of Omaha steps away from the company, investors might be fearing the company might be losing its edge.

Although Buffett has said his successor, Greg Abel, would be able to carry on the company’s performance and its culture, investors still have reacted sharply to the announcement. 

Berkshire investors’ reaction to the impact

Berkshire investors had mixed reactions to the development. Investors were surprised by the extent of the fall, however, while some of them think the stock can still maintain momentum till Buffett’s term ends, most are predicting it will decline after his exit.

David Kass, a finance professor at the University of Maryland and a long-standing Berkshire shareholder, expressed surprise at the magnitude of the underperformance, especially given that Buffett is not stepping down as CEO until December 31. 

Kass told CNBC that this relative decline could intensify, potentially approaching 20% in the coming weeks, as some shareholders may react to the stock’s recent price trajectory.

Kevin Heal, a Berkshire analyst at Argus Research, commented on the situation, suggesting that the immediate downturn in the first few days following the announcement was likely connected to the “Buffett premium” and potentially algorithm-driven trading. 

He further posited that subsequent declines in the stock price were more reflective of the performance of Berkshire’s underlying public and private assets.

Meyer Shields, another Berkshire analyst from Keefe, Bruyette & Woods, estimates that a “Buffett premium” of 5% to 10% may still be embedded in the stock. 

This remaining premium, he suggests, reflects the ongoing confidence among some investors in Buffett’s continued presence as chairman of the board. 

Despite the recent dips, Kass indicated that an additional decline in share value might occur after Buffett’s full departure at the end of the year. 

Impact of Q1 results

Beyond the influence of the “Buffett premium,” a contributing factor to the stock’s recent performance appears to be Berkshire Hathaway’s first-quarter earnings report. 

The company’s operating earnings, which encompass its wholly-owned insurance and railroad businesses, saw a 14% decrease, falling to $9.64 billion during the initial three months of the year.

The decline was mainly due to a 48.6% plunge in insurance-underwriting profit. 

The company’s cash pile increased to $348 billion in the quarter. 

The confluence of Buffett’s announced transition, the market’s re-evaluation of the “Buffett premium,” and a dip in first-quarter operating earnings appears to be collectively influencing Berkshire Hathaway’s stock performance. 

While the short-term trajectory remains under scrutiny, the long-term impact of this leadership shift and market recalibration will continue to be a key focus for investors.

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Circle stock price surged to a new record high after the US Senate passed the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS) and the ongoing stablecoin demand. CRCL shares closed at $200, up by over 300% from its listing price.

Cashing in on stablecoin growth

Circle stock price has surged after going public as investors focused on the GENIUS Act, which passed in the Senate this week. There are rising odds that the bill will pass in the House of Representatives since some Senate Democrats supported it.

The GENIUS Act is a bullish catalyst for Circle stock for two main reasons. First, it brings in the regulatory clarity that the stablecoin market needs without adding any undue costs. For example, the bill mandates issuers to hold liquid government bonds and do regular reporting, which Circle does already. 

Second, the GENIUS Act may make USDC gain market share if Tether refuses to comply as it did with MiCA. Such a move will force companies like Coinbase to convert user holdings from USDT to USDC as some European exchanges have done. 

Circle Payments Network is a key catalyst

The other bullish catalyst for the Circle stock price is the Circle Payments Network (CPN), a business that seeks to disrupt the financial services industry. 

CPN partners with banks and payment service companies to offer them a cheaper and faster approach to send money internationally.

Presently, these companies use SWIFT technology, a process that is expensive and slow. That’s because it uses correspondent banks and other processes. As a result, it is normal for a transaction to take a few hours or days to complete. 

The Circle Payment Network avoids this lengthy process by using USDC. In it, a company executes a payment using the stablecoin, which is then completed within a few seconds. USDC transactions cost cents, making them ideal for all parties.

The CPN business model also has a chance to disrupt traditional companies like Visa and Mastercard that make billions of dollars a year in payment transaction costs. 

Indeed, it has been reported that companies like Walmart and Amazon are considering leveraging stablecoins to cut these costs. One way for them to do that would be to partner with Circle, which already runs a popular stablecoin.

Risks for buying Circle stock

There are risks for buying Circle stock at this level. First, there are signs that USDC holdings are not growing. CoinGecko data shows that the stablecoin has a market cap of $61.45 billion, lower than the April high of $62 billion. 

Circle needs its USD supply to continue growing for it to supercharge its growth. Higher stablecoin growth means that it will generate higher investment income. 

The other risk is that the company is now highly valued since its market cap stands at over $33 billion, 54% of its total stablecoin assets. 

Further, the Federal Reserve has signaled that it will execute two interest rate cuts this year and more in 2024 and 2025. Lower rates will impact its revenue and profitability growth. 

Circle stock price will also face risks of a pullback when investors start to take profits. Cathie Wood’s Ark Invest has already dumped shares worth millions of dollars, and more investors will follow. 

The other top risk is that the company’s lockup expiry will happen in the next few months. Historically, recently IPOed companies crash or experience volatility ahead of expiry, letting insiders dump their shares. 

Finally, the ongoing momentum will likely ease now that the Circle stock price has become highly overbought. 

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