Welcome to Markets Desk, your midday read on what's moving markets and policy.
Thomas Massie is out. The Kentucky Republican congressman lost his primary after President Trump actively campaigned against him, calling Massie an obstacle to the GOP agenda. It's another clean win for Trump's grip on the House caucus, and a signal to any Republican considering crossing the White House that the political cost is real.
Shifting to tech, Google used its I/O developer conference to make a sweeping case that its AI investment is paying off. DeepMind chief Demis Hassabis declared humanity at the foothills of the singularity, and the company rolled out a series of new tools and services. Notably, Google held back its most powerful Gemini three point five Pro model, opting instead to deploy the smaller Flash version first and gather reinforcement learning data before a full launch.
And on the macro front, traders are watching Wednesday's Federal Reserve minutes closely for any signal on how policymakers view energy cost pass-through to consumers. With inflation still sticky, the question is whether the Fed sees businesses absorbing higher energy prices or pushing them downstream, which would complicate any pivot toward rate cuts.
That's the tape. Markets Desk, signing off the floor.
