What’s in the New Bipartisan Housing Bill That Congress Just Passed

Key takeaways

The tech sector is highly volatile, with AI investment and infrastructure costs leading to significant financial losses for some companies.
US markets are influenced by both technological optimism and caution, reflected in stock, oil, and cryptocurrency prices.
Semiconductors continue to be vital and lucrative, with major funding initiatives underway to meet AI-driven demand.
US political landscape remains highly contentious, especially on issues of voting rights and foreign policy, with ongoing tensions between the executive and legislative branches.
Housing policy is at a pivotal point, with recent legislation aiming to boost construction and affordability, but political interference and opposition continue to pose challenges.

Summary

Market Overview and AI Industry Candor

The episode begins with a look at the mixed performance of US stock markets, highlighting the decline in tech stocks amid fears of an AI bubble. Notably, Cerebrus, a chipmaker, announced ongoing losses, reflecting the high costs associated with AI development. Micron's earnings surpass expectations thanks to the booming demand for memory chips used in AI, though concerns about tech valuations persist. Meanwhile, global commodity and cryptocurrency markets show softness, with oil prices near pre-war levels and Bitcoin dipping below $60,000.

Advancements and Funding in Semiconductor Industry

South Korean chipmaker SK Hynix plans a massive US listing to raise over $29 billion, underscoring the rush for advanced chips driven by AI growth. This move highlights the semiconductor sector's strategic importance and the significant capital flowing into chip manufacturing amid the AI boom.

Political Maneuvering over Legislation and Foreign Policy

President Trump met with Senate Republicans to discuss legislative priorities, particularly focusing on the controversial Save America Act, which involves stringent voter ID rules and citizenship proof requirements. Trump was also visibly upset over a Senate resolution limiting the President's war powers concerning Iran, exposing the tensions in his relationship with Senate Republicans. The political discourse underscores the ongoing contest between different branches and levels of government on national security and electoral laws.

Housing Legislation and Political Dynamics

A major federal housing bill, the 21st Century Road to Housing Act, which aims to significantly ease housing development regulations, faced legislative hurdles after Trump’s abrupt decision to delay signing it into law. The bill includes provisions incentivizing localities to increase housing supply and curb private equity's role in housing. The back-and-forth was fueled by Trump’s desire to ban Wall Street investors from buying single-family homes, a move seen as politically motivated and controversial. The episode discusses the origins of the bill, bipartisan support, and current political negotiations surrounding it.

Show notes

P.M. Edition for June 24. After months of back and forth, Congress has passed new housing legislation aimed at making it easier to build homes and make housing more affordable. As part of our ongoing housing series, we hear from WSJ real estate reporter Rebecca Picciotto about what’s in the bill. Plus, President Trump met with Senate Republicans today after he refused to sign the housing legislation into law until the Senate passes a controversial voter-ID bill. Journal reporter Marianne LeVine joins us from the Capitol to discuss how the face-off went and where lawmakers go from here. And this week’s tech selloff is over, but markets are still keeping AI in focus. Alex Ossola hosts.

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