Trump Set to Oust FDA Commissioner

Key News Updates

1. FDA Commissioner Firing Plan Under Consideration

A plan to fire FDA Commissioner Marty Makary has been signed off by President Trump, according to sources familiar with the matter. This decision follows a period of conflict within the regulatory body over issues such as vaping, abortion, and drug policy. Makary, a former Johns Hopkins surgeon who frequently appeared on TV as a MAHA surrogate, would be the latest top official to be dismissed under Health Secretary Robert F. Kennedy Jr. The plan is not yet final and could still change. Makary has not responded to requests for comment. The White House has praised the Trump administration and stated that it continues to focus on delivering historic victories for the American people.

1. Apple and Intel Reach Preliminary Chip Agreement

Apple and Intel have reached a preliminary agreement on chip-making. However, it remains unclear which Apple products will be affected by this deal, according to sources. Apple ships over 200 million iPhones annually, along with millions of iPads and Mac computers. Both companies have declined to comment on the matter. Last summer, the Trump administration converted nearly $9 billion in federal grants into Intel stock, giving the U.S. government a 10% stake in the company. This move played a key role in bringing Apple to the table.

1. Virginia Supreme Court Rejects Democratic Redistricting Effort

The Virginia Supreme Court ruled against Democrats' attempt to create more blue-leaning districts ahead of the midterm elections. The 4-3 decision is a significant victory for Republicans, who are striving to maintain their narrow majority in the House. The court determined that the legislative process used to advance the new map violated the state’s constitution. In a tit-for-tat scenario, states are drawing new congressional maps to gain an advantage for either Republicans or Democrats.

1. Russia and Ukraine Agree to Cease-Fire and Prisoner Exchange

Russia and Ukraine have agreed to a three-day cease-fire and prisoner exchange. Trump announced this on Truth Social, stating that the pause in hostilities will begin the following day. The truce coincides with Russia's annual Victory Day, a celebration of its World War II victory over Germany. The most recent temporary cease-fire was a 32-hour pause for Orthodox Easter, during which both sides accused each other of breaking the truce.

1. U.S. Forces Strike Iranian Oil Tankers

U.S. forces struck two empty Iranian-flagged oil tankers attempting to bypass the American naval blockade against Iranian ports, according to Central Command. The airstrikes occurred as Secretary of State Marco Rubio expressed expectations for a response from Tehran regarding a proposed memorandum of understanding to end the war. Iranian officials have indicated they may agree to the proposal with some modifications. Additionally, the article highlights how Iran is gaining ground in the information war.

The Number

California plans to give away 400 diapers to every newborn born in the state this year. This initiative aims to address the Golden State’s affordability crisis. Priority will be given to mothers enrolled in the state’s Medicaid program, as announced by Governor Gavin Newsom.

Spotlight

U.S. Job Market Surpasses Expectations

The U.S. job market exceeded expectations in April, driven by gains across various industries. According to the Labor Department, the month saw a net gain of 115,000 jobs, down from 185,000 in March. The April report is expected to shift the focus to inflation data when determining the next steps for the Federal Reserve, which has paused interest-rate cuts. The jobs report, combined with a chip-stock rally, pushed U.S. stocks to new records.

Quoted

Catch Up

• Rubio Challenges European Allies to Make NATO More Useful (Read)
• North Korea’s New Nuclear-Capable Warship Poses Fresh Threat to South Korea, U.S. (Read)
• Why It’s So Hard to Spot a Stock-Market Bubble (Read)
• 🎥 What Happens to Air Travel When 20% of the World’s Exported Jet Fuel Vanishes (Watch)

Reporter’s Journal

Gunjan Banerji, a reporter and host of the new video series "The WSJ Money Interview," shares insights on the current stock market, the impact of the Iran war, and the role of AI in investing.

Q. What’s going on with this new-record-set-almost-every-day stock market?

A. Several factors are driving the stock market to record highs. One is a strong corporate earnings season, with 85% of S&P 500 constituents beating estimates. Other factors include individual investors buying the dip and piling into markets during short downturns.

Q. How is the Iran war impacting—and not impacting—the markets?

A. Initially, the Iran war caused market jitters, pushing the Nasdaq composite into a correction. However, the FOMO trade took hold, with investors betting that the war wouldn’t persist long. Thus far, they’ve been rewarded.

Q. What’s AI’s role in all this?

A. AI is increasingly influencing investment decisions, with many investors evaluating potential investments through the lens of AI’s impact on a company’s business.

Q. Doubters warn that blockbuster bets and momentum-chasing algorithms are fueling markets possibly divorced from reality. What’s your read on that?

A. There has been a boom in risky bets and trend-following algorithms. While some argue the market is detached from reality, strong corporate profits suggest otherwise.

Take a Break

Trisha Addicks, a coach specializing in sorority rush, has authored a new book titled “The Rush Bible.” For $4,990, she helps clients improve conversation skills and avoid #RushTok. Her book, released Tuesday, offers expertise to a broader audience.

Beyond the Newsroom

WSJ | Buy Side:

These new personal fans will keep you cool this summer.

Today’s newsletter was curated by Zlati Meyer in collaboration with Liz Webber in New York. Follow Zlati on X at @Zlatimeyer.

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