Stocks closed at their highest mark since February on Friday with a 1% advance in the S&P 500 driving the gauge to 6,000. All major industries climbed and dip buyers flocked to Tesla, which jumped more than 3.8% in the aftermath of its co-founder’s (and the stock’s) very public meltdown yesterday. Treasuries dropped across the curve with two-year yields topping 4%. Money markets trimmed bets that the US Federal Reserve will cut interest rates this year. Interest-rate swaps showed traders now see a roughly 70% chance of a quarter-point rate cut by September, compared with a probability of about 90% on Thursday. The amount of easing priced in for the year declined to about 43 basis points, fewer than two quarter-point cuts. Here’s your markets wrap.—David E. Rovella

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Though it’s only been a day since the big breakup, Republicans on Capitol Hill appear to fear Donald Trump’s hold over the party’s base more than the whims of the richest person on Earth. The GOP tax bill, which is projected to add trillions of dollars to the national debt, deprive millions of poor and disabled of medical care and food assistance while forcing millions more to forego coverage under the Affordable Care Act, remains on track for passage. 

Musk says he sees the bill—which shifts much of the above savings to America’s wealthiest—as a calamity. The GOP says tax cuts benefitting workers will help the economy. Trump was quick to claim yesterday that the Tesla chief executive’s main complaint is the bill’s squashing of incentives to buy his cars. Musk, whose hundreds of millions of dollars helped bankroll Trump’s slim victory over former Vice President Kamala Harris, was the biggest political donor of the 2024 cycle and has threatened to help primary anyone who votes for the legislation.

Mike Johnson, the far-right Louisiana Republican Trump helped make Speaker of the House, urged unquestioning fealty to the 78-year-old president. “Do not doubt, don’t second guess and do not challenge the President of the United States Donald Trump,” Johnson warned the GOP rank and file. “He is the leader of the party. He’s the most consequential political figure of our time.”

Despite recently fraught relations tied to an alleged assassination by Indian operatives on Canadian soil, Prime Minister Narendra Modi will be attending the Canada-hosted Group of Seven summit later this month. The South Asian country is not a member of the G-7, but this will be India’s 12th time participating and Modi’s sixth consecutive invitation.

Modi said Canadian Prime Minister Mark Carney invited him. The Modi government’s alleged involvement in a killing and extortion targeting Sikhs in Canada who advocate for a separate homeland for followers of the faith blew a temporary hole in relations between the two countries. (India has denied any wrongdoing.) But the invitation comes as the South Asian nation is expected to overtake Japan and become the fourth-largest economy by March next year.

Carney announced legislation on Friday to fast-track “nation-building” projects in Canada and remove internal barriers to trade in an effort to shore up the country’s economy. The move is a reaction to the tariffs and threats emanating from south of the border. The bill that aims to build “one Canadian economy” targets projects that may include ports, railways, highways, critical-mineral mines, oil pipelines and electricity transmission systems. The government’s overall goal is to speed up approvals to two years. 

Carney won the election in April on a pledge to win the trade war with the US and make Canada’s economy the strongest in the Group of Seven. A major step will be to speed up Canada’s sluggish regulatory processes, which have made it challenging to bring the country’s resources to market overseas.

Asset managers in Brazil are ramping up to take full advantage of a comeback in local equities after long stretches of weak performance pushed investors away. Some of the country’s biggest asset managers, such as BTG Pactual Asset Management and Vinland Capital, have bolstered their equity teams in recent months as local stocks climbed to a record.

Investors have withdrawn 34.8 billion reais ($6.2 billion) from equity funds this year, more than double the 15.5 billion reais they pulled out in 2024. The value destruction has been even worse in the country’s hedge fund industry, which has struggled to beat the industry benchmark and suffered record redemptions.

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