Trump praises non-farm data, urges Fed to lower rates; stocks rise, Cisco falls.

U.S. Congressional Budget Office: Trump's Fiscal Path Unsustainable, Deficit Forecast Increased by $1.4 Trillion

The U.S. Congressional Budget Office (CBO) has issued a warning that the country is on an unsustainable fiscal path, raising the deficit forecast for the next decade by $1.4 trillion. This adjustment is partly attributed to President Trump's tax law and immigration policies set for 2025. From 2026 to 2036, annual deficits are expected to reach or exceed 5.6% of GDP, marking a record high.

House Rejects Tariff Bill Against Canada

In a surprising turn, six Republican members of the House voted against a bill aimed at terminating Trump's tariffs on Canada. This reflects growing anxiety about the White House's economic agenda as midterm elections approach. Although Trump has threatened to veto similar measures, the dissent among Republicans indicates a weakening grip on the House majority.

Trump Praises Job Data, Calls for Lower Interest Rates

President Trump celebrated strong job data, suggesting that the U.S. should enjoy the lowest interest rates globally, which could save at least $1 trillion in interest payments annually. He believes this would not only balance the budget but also create a surplus.

Surge in Tariff Revenue

The U.S. government reported a significant increase in tariff revenue, with January's customs duties reaching $30 billion, totaling $124 billion for the fiscal year to date, a 304% increase compared to the same period in 2025. This surge has helped slow the growth of the budget deficit.

CME Group Plans to Launch First Rare Earth Futures Contract

The CME Group is reportedly moving forward with plans to introduce the world's first rare earth futures contract, combining the two most critical rare earth elements, neodymium and praseodymium, which are essential for manufacturing permanent magnets used in various technologies.

Trump Orders Military to Purchase Coal Power

In a bid to extend reliance on coal power, Trump has ordered the Pentagon to procure electricity from coal plants and allocated millions for upgrading existing facilities. This move aims to ensure stable power supply for critical industries.

Breakthrough in Quantum Key Distribution Network

Chinese scientists have successfully built the world's first large-scale quantum key distribution network based on integrated optical quantum chips, supporting parallel communication for 20 users over a distance of 3,700 kilometers.

Market Reactions

The Dow Jones and Nasdaq saw slight declines, while the S&P 500 closed flat. Notable stock movements included Micron Technology rising nearly 10%, while major tech stocks like Microsoft and Google fell over 2%.

Cisco Reports Record Revenue but Shares Drop

Cisco's latest quarterly revenue and earnings both saw double-digit growth, yet shares fell over 7% due to concerns over weak gross margin forecasts for the current quarter.

Meta Platforms to Invest Over $10 Billion in Indiana Data Center

Meta Platforms plans to invest over $10 billion in a new data center in Indiana, which is expected to create 300 long-term jobs and support local infrastructure improvements.

T-Mobile Projects Significant Revenue Growth

T-Mobile expects service revenue to reach approximately $77 billion by 2026, with plans to expand its broadband user base significantly.

Alibaba to Continue Heavy Investment in Taobao Flash Sales

Alibaba's management has encouraged continued investment in Taobao's flash sales, indicating a three-year plan without concerns over losses.