Stocks opened higher Friday after Fed Governor Christopher Waller, whose name is in the running to replace Fed Chair Jerome Powell, said rate cuts could come as soon as the central bank's July meeting.
"I think we’re in the position that we could do this as early as July," Waller told CNBC during an episode of "Squawk Box," noting that he doesn't expect tariff-related effects on inflation to be "that big."
However, he made sure to point out that this is his view, not necessarily the outlook of the broader Federal Open Market Committee.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In the Fed's Summary of Economic Projections, released alongside the FOMC statement after the June Fed meeting on Wednesday, seven committee members expressed expectations that the federal funds rate will remain at its current 4.25% to 4.5% through year's end.
Chip stocks drop
Price action turned choppy mid-morning, though, as several semiconductor stocks sold off after a report in The Wall Street Journal suggested the U.S. is preparing to revoke waivers that allow global chipmakers operating in China to gain access to American products without applying for a license each time.
This follows a trade truce between the U.S. and China from earlier this month that included an agreement to hold off on initiating new export controls. While The Wall Street Journal says this "action isn't a new trade escalation," it could disrupt the delicate negotiations between the two countries.
Taiwan Semiconductor Manufacturing (TSM) tumbled 1.9%, while Nvidia (NVDA) shed 1.1% and Marvell Technology (MRVL, -1.9%).
Tesla's $2 trillion bull case
Tesla (TSLA) eked out a 0.03% gain ahead of the electric vehicle maker's highly anticipated robotaxi launch in Austin, Texas, this Sunday, June 22. The initial rides, which are by invitation only, will be in Tesla's Model Y SUV.
"The golden era of autonomous for Tesla officially kicks off on Sunday," says Wedbush analyst Daniel Ives. While the initiative will start small this summer in Austin, he expects it will scale to roughly 25 U.S. cities over the next year.
"We view this autonomous chapter as one of the most important for Musk and Tesla in its history as a company," Ives says.
And Ives believes "Tesla could reach a $2 trillion market cap by the end of 2026 in a bull case scenario" when combining its full-self-driving (FSD) and autonomous penetration, along with the acceleration of Cybercab and its AI opportunity.
This is double Tesla's market cap of $1.04 trillion at the June 20 close. Just five U.S. companies currently have a market cap above $2 trillion: Microsoft (MSFT), Nvidia, Apple (AAPL), Amazon (AMZN) and Alphabet (GOOGL).
Red-hot Circle gets its first Buy rating
Circle Internet Group (CRCL) surged 20.4% after the stablecoin platform received its first Buy rating. Seaport Research Partners analyst Jeff Cantwell initiated coverage on the crypto stock, along with a $235 price target – below CRCL's June 20 close at $240.28.
Shares have been red-hot since Circle's June 5 initial public offering (IPO) – up roughly 190% since its close that day – thanks in part to the Senate's recent passage of the GENIUS Act.
The bill will create a regulatory framework for stablecoins and expand the market for the cryptocurrency.
Cantwell expects stablecoin's "market cap" to reach $2 trillion over the long term, from its current roughly $250 billion. "As this occurs, we see Circle generating annual revenue growth of 25%-30% … with the ability to drive operating leverage as it scales further," the analyst adds.
Cantwell also calls the Circle Payments Network (CPN) a potentially "disruptive service in areas like supplier payments, remittances, and even payroll."
As for the main indexes, the Dow Jones Industrial Average was up 0.08% at 42,206, the S&P 500 was 0.2% lower at 5,967, and the Nasdaq Composite had shed 0.5% to 19,447.
Related content
- Earnings Calendar and Analysis for June 23-27
- Kiplinger's Economic Calendar for June 23-27
- Why I Trust Bonds, Even Now
-
A Cruiser’s Guide to Carnival’s Revamped Rewards ProgramWith Carnival launching a revamped dual‑earning loyalty program in June 2026, learn how to rack up points and tier status more strategically — aboard and ashore.
-
Think Twice Before You Tap Your 401(k) EarlyPenalty-free distributions have become more accessible, but they can be detrimental to your retirement security.
-
The $1 Million Retirement Question: Are You Being Tax-Smart About Your Pension?A financial planner raises some key considerations for navigating retirement with a pension and recommends four strategies.
-
The Costly Mistake You Might Be Making With Your First 401(k)Most people start contributing to their retirement savings later in life. That could be a big-time mistake, literally costing you thousands of dollars.
-
Why I Trust Bonds, Even NowColumnist Jeffrey Kosnett explains why he stands by investing in bonds.
-
An Estate Planning Attorney's Guide to the Importance of POAsRegularly updating your financial and health care power of attorney documents ensures they reflect your current intentions and circumstances. It's also important to clearly communicate your wishes to your chosen agents.
-
Divorce and Your Home: An Expert's Guide to Avoiding a Tax BombYour home is probably your biggest asset, so if you're getting a divorce, the stakes are high. Keep it? Sell it? You need to have a good plan in place for how to handle it.
-
Stock Market Today: Stocks Grapple for Peace Trade GainsOf course dramatic tension is high on Fed Day, only this time it's about war and peace as well as monetary policy.
-
Fewer Agents, Fewer Audits: How IRS Staff Cuts Are Changing EnforcementSignificant reductions in the IRS workforce appear to be increasing the number of 'no change' audit closures. The shift could potentially increase the overall tax gap — the difference between taxes that should have been paid and those that were.
-
What if You Could Increase Your Retirement Income by 50% to 75%? Here's HowCombining IRA investments, lifetime income annuities and a HECM into one plan could significantly increase your retirement income and liquid savings compared to traditional planning.
