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U.Va. medical school dean set to leave for new job

SUMMARY:

  • U.Va. medical school and chief health affairs officer is finalist for UTHealth Houston presidency
  • has been at U.Va. since 2021
  • She and former CEO Dr. Craig Kent were subject of letter of no confidence in 2024

Dr. Melina Kibbe, the ‘s medical school dean and chief health affairs officer at Health, is the sole finalist for the presidency of the University of Texas Health Science Center at Houston, UTHealth announced this week.

Kibbe has been at U.Va. since 2021. Her tenure at U.Va. has been challenging, as both she and Dr. K. Craig Kent were subject of a vote of “no confidence” by 128 physicians in 2024, who called for their resignations. Kent resigned as CEO of UVA Health in February, following a closed-session meeting of the U.Va. Board of Visitors.

Kibbe remained in place, although a false letter of resignation made the rounds around the same period, forcing UVA Health head Dr. Mitch Rosner to state publicly that it was a hoax.

In response to UTHealth’s announcement Monday, Rosner released this statement: “During her tenure as dean of the University of Virginia School of Medicine and chief health affairs officer for UVA Health, Dr. Melina R. Kibbe has played a vital role in crafting and advancing UVA Health’s 10-year strategic plan, which seeks to expand UVA Health’s biomedical research enterprise and make U.Va. the nation’s top public academic health system.

“We are excited that Dean Kibbe has been named the sole finalist for the presidency of The University of Texas Health Science Center at Houston, and we wish her well as the hiring process moves forward.”

A vascular surgeon who researches novel therapies for vascular disease, Kibbe said in a statement provided by UTHealth, “It’s an extraordinary honor to be named as sole finalist for the presidency at UTHealth Houston, an institution that stands at the forefront of health education, research and patient care. UTHealth Houston is uniquely positioned to shape the future of in Texas and beyond.”

She remains the sole finalist during a state-required 21-day waiting period before officially being named president.

In the 128 faculty members’ letter to the U.Va. board, Kent and Kibbe were accused of creating a “culture of fear and retaliation” that “compromised patient safety.” The letter also accused the UVA Health leaders of “excessive spending on C-suite executives and support” and “failure to be forthcoming on significant financial matters.”

Then-President Jim Ryan and members of the UVA Health board defended Kibbe and Kent, but the university hired a law firm to perform a third-party investigation into the letter’s allegations. Following the investigation, Kent resigned. In April, a group of 21 doctors released a letter saying that some current and former board members “advanced a false narrative” that the 128 physicians who called for Kent and Kibbe to resign in 2023 were “motivated by greed.”

U.Va. did not yet disclose who will serve in Kibbe’s position when she leaves, nor what the timeline will be for a search for her replacement. Currently, U.Va.’s president, UVA Health’s CEO and U.Va.’s provost posts are all filled on an interim basis, following Ryan’s resignation in June and former Provost Ian Baucom’s departure to become president of Middlebury College.

Jennifer “J.J.” Wagner Davis, the university’s executive vice president and chief operating officer, is U.Va.’s acting president, until the board of visitors names a longer-term interim president to serve until a permanent replacement for Ryan is in place. On Tuesday, the board announced it is seeking suggestions from university community members for the interim president, in a portal that will remain open until July 25.

Omniplex lays off 199 Chantilly workers

Chantilly-based security firm World Services will lay off 199 employees on July 31, following the termination of an contract.

However, an spokesperson indicated that the employees will have the chance to interview for positions with the new vendor.

Omniplex, a subsidiary of -based , notified the state of the on Monday, in compliance with the Worker Adjustment and Retraining Notification (WARN) Act. A letter written by Constellis human resources representative Tanni Wiersema said that its contract with IAD- is being terminated on July 31, and that the contract is the only source of work for the employees.

The majority of the positions are unarmed security officers, according to Omniplex’s letter.

Because IAD-Chantilly notified Omniplex of the contract termination on June 20, Wiersema said the company was unable to provide the 60-day layoff notice required by the WARN Act.

According to the letter, the 199 employees were working at 25316 Prediction Lane in Chantilly. While the letter does not specify what was being done at the location, datacentermap.com — an online database of — says the address is an Amazon Web Services location.

The website says that Amazon Web Services does not list its data center locations publicly and that all AWS listings in its database are based on publicly available information from third parties, open databases, property registries, construction applications, permits, tenders, news coverage and its own research.

“As part of our regular course of business, we regularly evaluate our vendor partners based on a number of factors and make changes to meet our business needs,” said Amber Plunkett, Amazon spokesperson, in a statement. “As a result of that recent review, we’re changing security vendors. Employees of our current vendor will have the opportunity to interview for positions with other contracted vendors.”

Omniplex did not immediately return requests for comment.

Wiersema’s letter says that the layoffs are expected to be permanent, and employees will not have bumping rights to another position. The employees are not represented by a union.

Virginia isn’t the only location where Omniplex is laying off employees. Link NKY, a Kentucky publication, reported last week that Omniplex filed a announcing it was laying off 73 workers in Kentucky by July 31. According to a letter written by Constellis HR representative Krystle Figueroa, the Kentucky layoffs follow a recent termination of Omniplex’s contract with AWS.

According to Omniplex’s LinkedIn page, it specializes in providing professional background investigations, intelligence support and physical security services to corporations and government agencies nationwide.

US stocks drift after an encouraging report on inflation

Summary

  • and hover near record levels
  • Wholesale lower than economists expected
  • Johnson & Johnson stock rises on strong earnings
  • warns of flat 2026 growth due to tariffs

NEW YORK (AP) — U.S. stock indexes are drifting around their record levels on Wednesday following a better-than-expected update on inflation across the country.

The S&P 500 was virtually unchanged in early trading and just below its all-time high set last week. The Industrial Average was up 62 points, or 0.1%, as of 10 a.m. Eastern time, and the Nasdaq composite was edging back by 0.1% from its own record set the day before.

eased in the bond market after a report said inflation slowed by more last month at the wholesale level than economists expected. The data offer some encouragement after a report on Tuesday suggested President Donald Trump’s tariffs are pushing up the prices U.S. shoppers are paying for toys, apparel and other imported products.

Trump’s tariffs are making their weight felt across financial markets. ASML, the world’s leading supplier of chipmaking gear, warned that it can’t guarantee any growth next year, after delivering an expected 15% growth in sales for 2025.

Conditions still look strong for ASML’s customers in the artificial-intelligence business, but CEO Christophe Fouquet said in a video that “the level of uncertainty is increasing, mostly due to macroeconomic and geopolitical consideration. And that includes, of course, tariffs.”

Shares of ASML, which is based in the Netherlands, that trade in the United States fell 10.8%.

Stocks of several U.S. banks helped to offset that after they reported stronger profits for the latest quarter than analysts expected.

PNC Financial Services Group climbed 1.5% following its better-than-expected quarterly report, thanks in part to loan growth despite what CEO Bill Demchak called “an uncertain macro environment.”

Bank of America and Goldman Sachs both swayed between modest gains and losses after likewise reporting better profit than analysts expected.

Johnson & Johnson jumped 4.4% after the drug and medical device giant beat analysts’ sales and profit targets and raised its full-year forecasts for both. CEO Joaquin Duato said it expects “game-changing approvals and submissions” in the second half of 2025 on an array of products, including for lung and bladder cancer.

GrabAGun, an online retailer of firearms and ammunition, swung sharply in its first day of trading after combining with Colombier Acquisition Corp. II and taking its spot on the under the ticker “PEW.” Donald Trump Jr., the son of President Trump, is joining the company’s board. The stock quickly went from an early gain of 19% to a drop of 31% before moderating its loss, with a few halts in trading a long the way.

In stock markets abroad, indexes were mixed amid mostly modest movements.

Stocks rose 0.7% in Jakarta after Trump said Tuesday that he plans to charge imports from Indonesia a tariff of 19%, instead of the 32% that he had threatened earlier, after reaching a trade deal.

Indonesia’s central bank also cut its key interest rate by 0.25 percentage points on Wednesday, to 5.25%.

“We have calculated everything and discussed everything. The most important thing for me is my people, as I must protect the interests of our workers,” Indonesian President Prabowo Subianto told reporters, adding that “this is our offer, and we are not able to give more (to the United States).”

In the bond market, the yield on the 10-year U.S. Treasury fell to 4.45% from 4.50% late Tuesday.

Wednesday’s encouraging report on inflation could give the some confidence that it can resume cutting later this year in order to give the economy a boost.

Wall Street loves lower interest rates because they juice prices higher for stocks and other investments, and Trump himself has been clamoring for the Federal Reserve to cut rates more quickly. But the Fed has been keeping interest rates on hold this year because lower rates can also give inflation more.

Fed Chair  has been insisting that he wants to see more data about how tariffs affect the economy and inflation before making a move.

Claude Moore foundation hires new exec director

The Charitable Foundation announced Monday that its board of trustees has appointed  John H. Cook IV as its next .

His appointment follows the June retirement of longtime Claude Moore Executive Director J. Hamilton Lambert, who led the foundation for more than 34 years.

In his new role, Cook will oversee the foundation’s investments in nonprofit organizations that advance workforce development, education and human services in Loudoun County and across the state.

Based in , the foundation provides assistance exclusively for charitable and educational purposes. Since its founding in 1987 by the late Dr. Claude Moore, it has awarded more than $115 million in grants, including more than $20 million to Claude Moore Scholars, a health care education program that has reached more than 35,000 Virginia students. The foundation says in the 2025 round of scholars grants, funding went to 18 grantees for application in 56 school systems across Virginia.

Cook’s priorities include supporting Claude Moore Opportunities — a statewide organization that aims to strengthen Virginia’s health care workforce pipeline, and maximizing the potential of Moorefield, the foundation’s primary endowment asset in Loudoun County.

At attorney, Cook most recently served as the foundation’s full-time chief council, a role he held since 2021, according to his LinkedIn. He was in private practice from 1990 to 2010, acting as lead counsel on more than 100 jury trials. He later worked at Glasheen, Valles & Inderman, a Texas-based personal injury law firm, from 2011 to 2019. Cook has a bachelor’s degree from Texas Tech University and received his law degree from George Mason University’s School of Law.

“I am honored to continue J’s stewardship of Dr. Moore’s legacy,” Cook said in a statement. “The foundation’s impact across Virginia has been profound, and I look forward to building on its work to expand opportunity and transform lives across the commonwealth.”

The tariff-driven inflation that economists feared begins to emerge

Summary

  • June rose to 2.7%, up from 2.4% in May
  • Price hikes seen in goods affected by Trump’s
  • Tariffs blamed for reversing months of easing inflation
  • Trump claims inflation is over, presses Fed to cut rates

WASHINGTON (AP) — Inflation rose last month to its highest level since February as President Donald Trump’s sweeping tariffs push up the cost of everything from groceries and clothes to furniture and appliances.

rose 2.7% in June from a year earlier, the said Tuesday, up from an annual increase of 2.4% in May. On a monthly basis, prices climbed 0.3% from May to June, after rising just 0.1% the previous month.

Worsening inflation poses a political challenge for Trump, who as a candidate promised to immediately lower costs, but instead has engaged in a whipsawed frenzy of tariffs that have jolted businesses and consumers. Trump insists that the U.S. effectively has no inflation as he has attempted to pressure  Chair into cutting short-term .

Yet the new inflation numbers make it more likely that the central bank will leave rates where they are. Powell has said that he wants to gauge the economic impact of Trump’s tariffs before reducing borrowing costs.

Excluding volatile food and energy, core inflation increased 2.9% in June from a year earlier, up from 2.8% in May. On a monthly basis, it picked up 0.2% from May to June. Economists closely watch core prices because they typically provide a better sense of where inflation is headed.

The uptick in inflation was driven by a range of higher prices. The cost of gasoline rose 1% just from May to June, while grocery prices increased 0.3%. Appliance prices jumped for the third straight month. Toys, clothes, audio equipment, shoes, and sporting goods all got more expensive, and are all heavily imported.

“You are starting to see scattered bits of the tariff inflation regime filter in,” said Eric Winograd, chief economist at asset management firm AllianceBernstein, who added that the cost of long-lasting goods rose last month, compared with a year ago, for the first time in about three years.

Winograd also noted that housing costs, a big inflation driver since the pandemic, have continued to cool, actually holding down broader inflation. The cost of rent rose 3.8% in June compared with a year ago, the smallest yearly increase since late 2021.

“Were it not for the tariff uncertainty, the Fed would already be cutting rates,” Winograd said. “The question is whether there is more to come, and the Fed clearly thinks there is,” along with most economists.

Some items got cheaper last month, including new and used cars, hotel rooms, and airfares. Travel prices have generally declined in recent months as fewer international tourists visit the U.S.

A broader political battle over Trump’s tariffs is emerging, a fight that will ultimately be determined by how the U.S. public feels about their and whether the president is making good on his 2024 promise to help the middle class.

The White House pushed back on claims that the report showed a negative impact from tariffs, since the cost of new cars fell despite the 25% tariffs on autos and 50% tariffs on steel and aluminum. The administration also noted that despite the June bump in apparel prices, clothing prices are still cheaper than three months ago.

“Consumer Prices LOW,” Trump posted on Truth Social. “Bring down the Fed Rate, NOW!!!”

For Democratic lawmakers, the inflation report confirmed their warnings over the past several months that Trump’s tariffs could reignite inflation. They said Tuesday that it will only become more painful given the size of the tariff rates in the letters that Trump posted over the past week.

“For those saying we have not seen the impact of Trump’s tariff wars, look at today’s data. Americans continue to struggle with the costs of groceries and rent — and now prices of food and appliances are rising,” said Sen. Elizabeth Warren, D-Mass.

Many businesses built up a stockpile of goods this spring and were able to delay price hikes, while others likely waited to see if the duties would become permanent.

More businesses now appear to be throwing in the towel and passing on costs to consumers, including Walmart, the world’s largest retailer, which has said it raised prices in June. Automaker Mitsubishi said last month that it was lifting prices by an average of 2.1% in response to the duties, and Nike has said it would implement “surgical” price hikes.

Powell said last month that companies up and down the supply chain would seek to avoid paying tariffs, but that ultimately some combination of businesses and consumers would bear the cost.

“There’s the manufacturer, the exporter, the importer, the retailer, and the consumer, and each one of those is going to be trying not to be the one to pay for the tariff,” the Fed chair said. “But together, they will all pay for it together—or maybe one party will pay it all. But that process is very hard to predict, and we haven’t been through a situation like this.”

Trump has imposed sweeping duties of 10% on all imports plus 30% on goods from China. Last week the president threatened to hit the European Union with a new 30% tariff starting Aug. 1.

He has also threatened to slap 50% duties on Brazil, which would push up the cost of orange juice and coffee. Orange prices leaped 3.5% just from May to June, and are 3.4% higher than a year ago, the government said Tuesday.

Overall, grocery prices rose 0.3% last month and are up 2.4% from a year earlier. While that is a much smaller increase than after the pandemic, when inflation surged, it is slightly bigger than the pre-pandemic pace. The has also placed a 17% duty on Mexican tomatoes.

Families have cut spending on food as prices rise. Cassidy Grom, 29, her husband, and his mother are eating out less and try to stretch grocery store rotisserie chickens as far as possible, using them in salads and the bones for soup.

“It feels like a miracle if I’m able to leave the grocery store without spending $100,” the Edison, New Jersey resident said. “We’re trying to save for a house, we’re trying to save for a family, so prices are really on our mind.”

Accelerated inflation could provide a respite for Powell, who has come under withering fire from the White House over interest rates.

The Fed chair has said that the duties could both push up prices and slow the economy, a tricky combination for the central bank since higher costs would typically lead the Fed to hike rates while a weaker economy often spurs it to reduce them.

Virginia casinos report $78.5M in June revenue

SUMMARY:

  • Virginia earned $78.5 million in June, down $6.9 million from May
  • in Danville led with $30.57 million in revenue
  • For the month of June, taxes from adjusted revenues totaled about $14.1 million.

June gaming revenues from Virginia’s three casinos totaled $78.5 million, down $6.9 million from May, according to a Tuesday report from the .

Last month, casino reported about $21.44 million in adjusted gaming revenues (wagers minus winnings), of which about $17.24 million came from its 1,397 slots and about $4.2 million came from its 73 table games. (The casino’s temporary facility opened in July 2022, making it the first operating casino in Virginia. The permanent Hard Rock Bristol opened in November 2024.)

, which opened as Virginia’s first permanent casino in January 2023, generated about $18.6 million in June from its 1422 slots and about $7.85 million from its 84 table games, for a total adjusted gaming revenues of about $26.46 million.

The state’s newest permanent casino, the Caesars Virginia resort in Danville, reported almost $30.57 million in adjusted gaming revenues, with about $23.1 million coming from its 1,451 slots and roughly $7.46 million coming from the casino’s 100 table games. The $800 million Caesars Virginia opened in December 2024, replacing a temporary casino that opened in May 2023.

Virginia law assesses a graduated tax on a casino’s adjusted gaming revenue. For the month of June, taxes from totaled about $14.1 million.

Under Virginia law, 6% of a casino operator’s adjusted gaming revenue goes to its host locality until the operator passes $200 million in AGR for the year, at which point the host locality’s tax rate rises to 7%. If an operator passes $400 million in AGR in the calendar year, that rises to 8%.

For June, Portsmouth received 6% of the Rivers Casino Portsmouth’s AGR, getting about $1.59 million. Danville received 6% of the Caesars Virginia casino’s adjusted gaming revenue, amounting to roughly $1.83 million. For the Bristol casino, 6% of its adjusted gaming revenue — nearly $1.29 million last month — goes to the Regional Improvement Commission, which the General Assembly established to distribute Bristol casino tax funds throughout Southwest Virginia.

The Problem Gambling Treatment and Support Fund receives 0.8% of total taxes — about $112,997 last month. The Family and Children’s Trust Fund, which funds family violence prevention and treatment programs, receives 0.2% of the monthly total, which was approximately $28,249 in June.

Two more casinos are on the horizon in Virginia.

Construction began on the long-awaited $750 million Norfolk casino in February. The Pamunkey Indian Tribe remains a partner in the venture, but Boyd Gaming replaced Tennessee investor Jon Yarbrough in 2024. A temporary casino is expected to be completed by the end of the year. Developers named Ron Bailey as vice president and general manager for the forthcoming casino earlier this month.

In November 2024, more than 80% of Petersburg voters said yes to the city’s casino referendum. Baltimore-based The Cordish Cos. and Virginia Beach developer Bruce Smith Enterprise broke ground on the much-anticipated $1.4 billion casino in March.

In May, Rivers Casino and Chicago-based Rush Street Gaming announced they are planning to break ground on a $65 million hotel in Portsmouth this summer, more than two years after the casino first opened.

Nvidia to resume highly desired AI computer chip sales to China

Summary

  • approves ‘s exports to China
  • Approval follows months of lobbying by Nvidia CEO
  • H20 chip complies with U.S. restrictions, but is less powerful
  • Nvidia shares rose 4% on news, signaling trade thaw with China

BANGKOK (AP) — Nvidia’s CEO Jensen Huang says the technology giant has won approval from the Trump administration to sell its advanced H20 computer chips used to develop artificial intelligence to China.

The news came in a company blog post late Monday, which stated that the U.S. government had “assured” Nvidia that licenses would be granted — and that the company “hopes to start deliveries soon.” Shares of the California-based chipmaker were up over 4% by midday Tuesday.

Huang also spoke about the coup on China’s state-run CGTN television network, in remarks shown on X.

“Today, I’m announcing that the U.S. government has approved for us filing licenses to start shipping H20s,” Huang told reporters in Beijing.

He added that half of the world’s AI researchers are in China. “It’s so innovative and dynamic here in China that it’s really important that American companies are able to compete and serve the market here,” he said.

Huang recently met with President Donald Trump and other U.S. policymakers — and is in Beijing this week to attend a supply chain conference and speak with Chinese officials. The broadcast showed Huang meeting with Ren Hongbin, the head of the China Council for Promotion of International Trade, host of the China International Supply Chain Expo, which Huang was attending. Nvidia is an exhibitor.

Nvidia has profited enormously from the rapid adoption of AI, becoming the first company to have its market value surpass $4 trillion last week. However, the trade rivalry between the U.S. and China has been weighing heavily on the industry.

Here’s what we know.

What is Nvidia’s H20 chip?

The H20 graphics processing unit, or GPU, is an advanced AI chip — a type of device used to build and update a range of AI systems. But it’s less powerful than Nvidia’s top semiconductors today.

That’s because the H20 chip was developed to specifically comply with U.S. restrictions for exports of AI chips to China. Nvidia’s most advanced chips, which carry more computing power, are off-limits to the Chinese market.

Washington has been tightening controls on exports of advanced technology to China for years, citing concerns that know-how meant for civilian use could be deployed for military purposes. And in January, before Trump began his second term in office, President Joe Biden’s administration launched a new framework for exporting advanced computer chips used to develop AI — in an attempt to balance national security concerns about the technology with the economic interests of producers and other countries.

Restrictions on sales of advanced chips to China have been central to the AI race between the world’s two largest economic powers, but such controls are also controversial. Proponents argue that these restrictions are necessary to slow China down enough to allow U.S. companies to keep their lead. Meanwhile, opponents say the have loopholes — and could still spur innovation. The emergence of China’s DeepSeek AI chatbot in January particularly renewed concerns over how China might use advanced chips to help develop its own AI capabilities.

What’s happened since Trump took office?

In April, just months after Trump took office, the White House announced that it would restrict sales of Nvidia’s H20 chips to China — as well as MI308 chips from rival chipmaker Advanced Micro Devices.

At the time, the Trump administration again cited national security. But Nvidia said these tighter export controls would cost the company an extra $5.5 billion — and Huang and other technology leaders have been lobbying Trump to reverse the restrictions since. They’ve argued that such limits hinder U.S. competition in a sector in one of the world’s largest markets for technology, and have also warned that U.S. export controls could end up pushing other countries toward China’s AI technology.

Monday’s announcement from Nvidia signals that its lobbyingefforts paid off — although the Trump administration has yet to publicly comment on the future of H20 chip sales in China. And the exact timing remains unknown overall. It’s also unclear whether AMD will similarly see restrictions lifted for its MI308 chips. AMD didn’t immediately return an emailed request for comment Tuesday about how Trump’s policies would affect its chip sales in China.

On top of export controls, California-based Nvidia — like other tech giants today — has been caught in the crosshairs of Trump’s tariff wars abroad, particularly amid America’s tit-for-tat levies with China. But Nvidia and its CEO have garnered Trump’s favor in recent months. In April, the company announced that it would be producing its AI chips in the U.S. for the first time, starting with more than one million square feet of manufacturing space to build and test its specialized Blackwell chips in Arizona and AI supercomputers in Texas.

Trump was quick to applaud Nvidia’s move. He introduced Huang as a “smart cookie” who was helping bring jobs to the U.S. at an “Investing in America” event held at the White House later that month.

Most US stocks fall, but Nvidia keeps Wall Street near records

Summary

  • June rose to 2.7%, up from 2.4% in May
  • Fed may delay rate cuts as price pressures increase
  • jumps 4.3% on U.S. license approval, boosts
  • Treasury yields rise; Dow falls 294 points, S&P edges lower

NEW YORK (AP) — Most U.S. stocks are falling on Tuesday after an update on inflation hurt Wall Street’s hopes for lower . But indexes are staying close to their records thanks to Nvidia, the market’s most influential stock.

The was down 0.1% in midday trading and just a bit below its all-time high, which was set on Thursday. The Industrial Average was down 294 points, or 0.7%, as of 11 a.m. Eastern time, and the Nasdaq composite was 0.4% higher and on track to set another record.

Stocks were feeling pressure from a report showing inflation accelerated to 2.7% last month in the United States from 2.4% in May. Economists pointed to increases in prices for clothes, toys and other things that tend to get imported from other countries. Their prices could be rising because of that President Donald Trump has imposed on countries worldwide in hopes of getting them to open their markets further to U.S. products.

“Inflation has begun to show the first signs of tariff pass-through,” according to Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.

To be sure, the inflation rate for June reported on Tuesday morning wasn’t far from what economists expected. And an underlying measure of inflation that economists think is a better predictor of future trends accelerated by less than feared.

Altogether, the data caused Treasury yields to yo-yo a few times in the bond market before they began rising.

The yield on the 10-year Treasury climbed to 4.47% from 4.43% late Monday. The yield on the two-year Treasury, which more closely tracks expectations for what the will do with short-term interest rates, rose to 3.94% from 3.90%.

A further acceleration in inflation could tie the hands of the Fed, which has kept interest rates on hold so far this year, because lower rates can give inflation more fuel. Wall Street loves lower interest rates because they goose prices higher for stocks and other investments, and Trump himself has been clamoring for the Fed to cut more quickly.

Fed Chair , though, has been adamant that he wants to wait for more data about how tariffs affect the economy and inflation before moving. Following Tuesday’s inflation data, traders are still overwhelmingly betting that the Fed will cut its main interest rate at least once by the end of the year. But they pulled back their bets on the number of potential cuts, compared with a day before, according to data from CME Group.

On Wall Street, tech stocks were the outliers and rose after Nvidia said the U.S. government assured it that licenses will be granted for its again and that deliveries will hopefully begin soon. Nvidia’s 4.3% gain was by far the strongest force pushing upward on the S&P 500.

Earlier this year, Nvidia said that U.S. restrictions on the chips used in artificial-intelligence development chiseled billions of dollars off its results for the first quarter of the year.

Nvidia’s announcement could also be an encouraging signal for trade talks between the United States and China, the world’s two largest economies.

Stocks of big U.S. banks, meanwhile, were mixed following their latest profit reports.

JPMorgan Chase fell 0.9% despite reporting a stronger profit than analysts expected, as CEO Jamie Dimon warned of risks to the economy because of tariffs and other concerns.

Citigroup rose 1.6%, and Wells Fargo fell 5.3% following their profit reports, which also topped analysts’ expectations.

In stock markets abroad, indexes slipped in Europe after a mixed session in Asia. Indexes rose 1.6% in Hong Kong but fell 0.4% in Shanghai after a report said China’s economic growth slowed only slightly last quarter despite pressure from Trump’s tariffs.

US inflation accelerated in June as Trump’s tariffs start to bite

Summary

  • rose 2.7% in June, up from 2.4% in May
  • Monthly accelerated to 0.3% from 0.1%
  • Gas, food, and grocery prices led the increase
  • Rising inflation complicates Trump’s cost-cutting promises

 

WASHINGTON (AP) — Inflation rose last month to its highest level since February as President Donald Trump’s sweeping  are pushing up the cost of a range of goods, including furniture, clothing, and large appliances.

Consumer prices rose 2.7% in June from a year earlier, the said Tuesday, up from an annual increase of 2.4% in May. On a monthly basis, prices climbed 0.3% from May to June, after rising just 0.1% the previous month.

Worsening inflation poses a political challenge for President Donald Trump, who promised during last year’s presidential campaign to immediately lower costs. The sharp inflation spike of 2022-2023 was the worst in four decades and soured most Americans on former president Joe Biden’s handling of the economy. Higher inflation will also likely heighten the ‘s reluctance to cut its short-term interest rate, as Trump is loudly demanding.

Trump has often insisted in comments on social media that there is “no inflation” and that as a result, the central bank should swiftly reduce its key interest rate from its current level of 4.3% to around 3%.

Excluding the volatile food and energy categories, core inflation increased 2.9% in June from a year earlier, up from 2.8% in May. On a monthly basis, it picked up 0.2% from May to June. Economists closely watch core prices because they typically provide a better sense of where inflation is headed.

The uptick in inflation was driven by a range of higher prices. The cost of gas rose 1% just from May to June, while grocery prices increased 0.35. Appliance prices jumped for the third straight month.

Trump has imposed sweeping duties of 10% on all imports, plus 50% levies on steel and aluminum, 30% on goods from China, and 25% on imported cars. Just last week the president threatened to hit the European Union with a new 30% tariff starting Aug. 1.

The acceleration in inflation could provide a respite of sorts for Federal Reserve Chair , who has come under increasingly heavy fire from the White House for not cutting the benchmark interest rate.

Powell and other Fed officials have emphasized that they want to see how the economy evolves as the tariffs take effect before cutting their key short-term rate. The Fed chair has said that the duties could both push up prices and slow the economy, a tricky combination for the central bank since higher costs would typically lead the Fed to hike rates while a weaker economy often spurs it to reduce them.

Trump on Monday said that Powell has been “terrible” and “doesn’t know what the hell he’s doing.” The president added that the economy was doing well despite Powell’s refusal to reduce rates, but it would be “nice” if there were rate cuts “because people would be able to buy housing a lot easier.”

Last week, White House officials also attacked Powell for cost overruns on the years-long renovation of two Fed buildings, which are now slated to cost $2.5 billion, roughly one-third more than originally budgeted. While Trump legally can’t fire Powell just because he disagrees with his interest rate decisions, the has signaled, he may be able to do so “for cause,” such as misconduct or mismanagement.

Some companies have said they have or plan to raise prices as a result of the tariffs, including Walmart, the world’s largest retailer. Automaker Mitsubishi said last month that it was lifting prices by an average of 2.1% in response to the duties, and Nike has said it would implement “surgical” price hikes to offset tariff costs.

But many companies have been able to postpone or avoid price increases, after building up their stockpiles of goods this spring to get ahead of the duties. Other companies may have refrained from lifting prices while they wait to see whether the U.S. is able to reach trade deals with other countries that lower the duties.

Supreme Court allows Trump to lay off nearly 1,400 Education Department employees

Summary

  • pauses ruling blocking Education Dept.
  • Trump plan includes cutting nearly 1,400 federal employees
  • Lower court warned move could “cripple the department”
  • Three liberal justices dissented from the high court’s order

WASHINGTON (AP) — The Supreme Court is allowing President Donald Trump to put his plan to dismantle the back on track — and to go through with laying off nearly 1,400 employees.

With the three liberal justices in dissent, the court on Monday paused an order from U.S. District Judge Myong Joun in Boston, who issued a preliminary reversing the layoffs and calling into question the broader plan. The layoffs “will likely cripple the department,” Joun wrote. A federal appeals court refused to put the order on hold while the administration appealed.

The high court action enables the administration to resume work on winding down the department, one of Trump’s biggest campaign promises.

The court did not explain its decision in favor of Trump, as is customary in emergency appeals. But in dissent, Justice Sonia Sotomayor complained that her colleagues were enabling legally questionable action on the part of the administration.

“When the Executive publicly announces its intent to break the law, and then executes on that promise, it is the Judiciary’s duty to check that lawlessness, not expedite it,” Sotomayor wrote for herself and Justices Ketanji Brown Jackson and Elena Kagan.

Education Secretary Linda McMahon said it’s a “shame” it took the Supreme Court’s intervention to let Trump’s plan move ahead.

“Today, the Supreme Court again confirmed the obvious: the President of the United States, as the head of the Executive Branch, has the ultimate authority to make decisions about staffing levels, administrative organization, and day-to-day operations of federal agencies,” McMahon said in a statement.

The Supreme Court has handed Trump one victory after another in his effort to remake the federal government, after lower courts have found the administration’s actions probably violate federal law. Last week, the justices cleared the way for Trump’s plan to significantly reduce the size of the federal workforce. On the education front, the high court has previously allowed cuts in teacher-training grants to go forward.

Separately on Monday, more than 20 states sued the administration over billions of dollars in frozen education funding for after-school care, summer programs and more.

Education Department employees who were targeted by the layoffs have been on paid leave since March, according to a union that represents some of the agency’s staff.

Joun’s order had prevented the department from fully terminating them, though none had been allowed to return to work, according to the American Federation of Government Employees Local 252. Without Joun’s order, the workers would have been terminated in early June.

The Education Department had said earlier in June that it was “actively assessing how to reintegrate” the employees. A department email asked them to share whether they had gained other employment, saying the request was meant to “support a smooth and informed return to duty.”

The current case involves two consolidated lawsuits that said Trump’s plan amounted to an illegal closure of the Education Department.

One suit was filed by the Somerville and Easthampton school districts in Massachusetts along with the American Federation of Teachers and other education groups. The other legal action was filed by a coalition of 21 Democratic attorneys general.

The suits argued that layoffs left the department unable to carry out responsibilities required by Congress, including duties to support special education, distribute financial aid and enforce civil rights laws.