“The whole secret to winning and losing in the stock market is to lose the least amount possible when you’re not right.” – William J. O’Neil

1. Treasury’s $1 Trillion Debt Deluge Threatens Market Calm — Investors are bracing for a flood of more than $1 trillion of Treasury bills in the wake of the debt-ceiling fight, potentially sparking a new bout of volatility in financial markets.
Some on Wall Street fear that roughly $850 billion in bond issuance that was shelved until a debt-ceiling deal was passed—sales expected between now and the end of September, according to JPMorgan analysts—will overwhelm buyers, jolting markets and raising short-term borrowing costs.
2. China’s Share of U.S. Goods Imports Falls to Lowest Since 2006 — The share of goods shipments the U.S. receives from China has declined to the lowest level since 2006. In recent years, imports from other countries in Asia have grown to meet the healthy demand for foreign products.
In April, U.S. businesses brought in more cars, cell phones and industrial supplies, the Commerce Department said Wednesday. Exports decreased as global growth ebbed. China’s share of trade with the U.S. dipped again, continuing a downward trend. China accounted for 15.4% of U.S. goods imports for the 12 months ended April, the smallest share since October 2006.
U.S. companies have been looking for alternatives to Chinese manufacturers in recent years. Amid geopolitical tensions between the two world powers, the Trump administration imposed tariffs on thousands of goods from China, which the Biden administration has continued.
3. GM EV Owners to Tap Tesla’s Supercharger Network — General Motors said its future electric vehicles will use the same charging hardware as Tesla TSLA a move aimed at giving GM owners more access to charging and further endorsing Tesla’s charging-port technology as the industry standard. GM reported that Tesla agreed to give GM customers access to 12,000 of Tesla’s fast chargers, known as Superchargers, starting next year. Those GM customers will need an adapter to use the chargers, because the GM vehicles use a different charge port. Starting in 2025, GM will start making EVs with the Tesla charge port instead. GM Chief Executive Mary Barra said that giving the company’s customers access to Superchargers will accelerate EV adoption and that switching to the Tesla charge port on future models “could help move the industry toward a single North American charging standard.”
4. Democrats Push for Debt-Ceiling Overhaul Bill After Default Scare — Democrats in the House and Senate introduced a bill Friday that would overhaul the debt-ceiling process, eager to capitalize on widespread anxiety in the party regarding the regular brinkmanship over the country’s borrowing limit.
Backers argue that using the full faith and credit of the U.S. as leverage is irresponsible and tantamount to taking the U.S. economy hostage. But many Republicans in Congress see the debt limit as a pressure point that can be used to extract concessions from Democrats on spending.

The week ahead — Economic data from Econoday.com: