Market Beats | Investors Rush Into Risky Stocks Despite Tariff, Economic, and War Fears; BlackRock Moves to Add Private Markets to US Retirement Accounts; US Mortgage Rates Fall for Fourth Week; US Goods Exports Plunge in May Amid Trump Tariffs; Tesla Executive Exodus Continues as Elon Musk Confidant Omead Afshar Departs; Xiaomi Unveils SUV to Rival Tesla Model Y

—— Investors Rush Into Risky Stocks Despite Tariff, Economic, and War Fears; BlackRock Moves to Add Private Markets to US Retirement Accounts; US Mortgage Rates Fall for Fourth Week; US Goods Exports Plunge in May Amid Trump Tariffs; Tesla Executive Exodus Continues as Elon Musk Confidant Omead Afshar Departs; Xiaomi Unveils SUV to Rival Tesla Model Y

1. Investors Rush Into Risky Stocks Despite Tariff, Economic, and War Fears

Investors are embracing risk with fervor as the S&P 500 nears a new record high, flooding into the most volatile corners of the market — even as serious headwinds loom.

Warning signs abound: President Donald Trump’s tariff pause ends in two weeks, economic data shows signs of a slowdown, consumer confidence is slipping, and geopolitical tensions simmer. Wall Street strategists advise caution, urging investors to stick with companies that have strong balance sheets. But that advice is being largely ignored.

The Invesco S&P 500 High Beta ETF — which tracks volatile stocks — is outperforming its low-volatility counterpart at the fastest pace since 2020. Meanwhile, a Goldman Sachs index of weak-balance-sheet companies is having its best month versus the S&P 500 since last September.

“This is the very beginning of a period of FOMO that happens in the late stages of every structural bull market — every single one,” said Julian Emanuel, chief equity and quantitative strategist at Evercore ISI. “What we are surprised by is the speed at which speculation has been embraced given the record bearishness just a little over two months ago and also in light of what continues to be significant economic and policy uncertainty.”

The rally is being driven largely by individual investors, who continue to chase momentum trades in tech and speculative names. In contrast to institutional money managers who pulled out during April’s tariff-driven downturn, retail investors kept buying, helping to lift the market out of its slump.

With time running out before Trump’s tariff pause expires and more uncertainty ahead, Wall Street’s cautious tone remains — but the market’s risk appetite appears to be telling a different story.

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2. BlackRock Moves to Add Private Markets to US Retirement Accounts

Larry Fink is pushing ahead with his ambitious effort to open up private markets to millions of everyday Americans through their retirement accounts.

On Thursday, BlackRock Inc. announced that Great Gray Trust Co., which services more than $210 billion in assets, will launch a new target-date fund that includes private credit — alongside BlackRock-managed private equity, public stocks, fixed income, and other investments.

BlackRock, the world’s largest asset manager, said it is committed to offering new retirement products that blend private equity, private credit, and possibly other alternative assets with traditional stocks and bonds. The firm estimates this diversification could improve annual returns by 0.5% and potentially grow overall retirement savings by 15% over 40 years.

“Blending public and private markets exposures requires a thoughtful approach to asset allocation and the ability to actively manage risk,” said Nick Nefouse, BlackRock’s global head of retirement solutions.

Fink vowed earlier this year to “unlock” private markets for retail investors. To that end, BlackRock has spent about $30 billion acquiring firms that specialize in private-market data, infrastructure, and credit — signaling a major strategic shift into areas that have traditionally been off-limits to average investors.

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3. US Mortgage Rates Fall for Fourth Week

US mortgage rates fell for a fourth consecutive week, offering a glimmer of relief for homebuyers amid a shifting housing market.

The average rate for 30-year fixed mortgages dropped to 6.77%, the lowest level since early May and down from 6.81% a week earlier, according to Freddie Mac.

The continued decline is welcome news for buyers seeking better deals as more listings become available across much of the country. However, affordability challenges remain high, and growing economic uncertainty may still impact consumer confidence.

In the four weeks through June 22, new listings fell year-over-year in 20 of the 50 largest US metro areas, Redfin reported. Purchase contracts dropped 2.3% during the same period — the steepest decline in three months — signaling that some sellers are pulling back amid market hesitation.

“Modestly lower mortgage rates later this year could improve affordability somewhat, but meaningful improvements appear unlikely,” said Kara Ng, senior economist at Zillow Home Loans. “Still, home shoppers have advantages — a wide selection of listings has given them more bargaining power than in any spring over the past seven years.”

Although rates have eased slightly from recent highs, they’re still hovering close to 7%. Many economists argue that additional incentives are needed to motivate buyers.

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4. US Goods Exports Plunge in May Amid Trump Tariffs

US goods exports suffered their sharpest decline since the onset of the Covid-19 pandemic in May, as global demand weakened in the wake of President Donald Trump’s sweeping “Liberation Day” tariffs.

According to Census Bureau data released Thursday, exports fell to $179.2 billion in May, down $9.7 billion or 5.2% from the previous month — reversing April’s 3.5% increase.

Economists said the drop reflects growing distortions in global trade as businesses and governments brace for retaliatory measures. While some of Trump’s tariffs were paused, others — including a blanket 10% tariff and multiple sector-specific duties — have gone into effect, impacting key exports.

“Exports had been strong recently, likely due to foreign buyers trying to get ahead of possible retaliation,” said James Knightley, chief international economist at ING. “Now we’re seeing a pullback, partly due to the cooling tariff tensions, and partly because companies had already stocked up inventory in advance.”

The steepest May decline was in industrial supplies, which include crude oil and metals. This category dropped 13.6% after a 16% surge in April. Vehicle exports, which had fallen over 20% in April, rebounded by 3.5%.

Economists also cautioned that April’s unusually high gold exports, which normalized in May, may have skewed the latest trade figures.

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5. Tesla Executive Exodus Continues as Elon Musk Confidant Omead Afshar Departs

Omead Afshar, a powerful Tesla executive and one of Elon Musk’s closest confidants, has left the electric carmaker, according to people familiar with the matter — the latest in a string of high-level exits amid a tumultuous period for the company.

News of Afshar’s departure has been circulating internally in recent days. Two people said his name no longer appeared in the company’s internal directory. The reasons for his exit and his next move remain unclear.

Afshar, who worked in the CEO’s office, was promoted last year to oversee sales and manufacturing operations in North America and Europe — two regions where Tesla has recently struggled, with sales slumping due to rising competition and consumer backlash over Musk’s political involvement with President Donald Trump.

His exit follows other recent departures, including Milan Kovac, head of engineering for Tesla’s Optimus humanoid robot project, who resigned citing a desire to spend more time with family. Jenna Ferrua, listed on LinkedIn as HR director for North America, has also left and no longer appears in the company directory.

The personnel changes come during a rocky year for Tesla. Shares have fallen about 19% in 2025 as EV demand softens and Musk shifts focus to AI, robotics, and autonomous vehicles — including a limited rollout of Tesla’s long-awaited robotaxi service in Austin.

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6. Xiaomi Unveils SUV to Rival Tesla Model Y

Chinese smartphone giant Xiaomi Corp. has launched its latest electric SUV, the YU7, priced at 253,500 yuan ($35,360), positioning it as a direct rival to Tesla’s popular Model Y in China.

At a Thursday launch event, Xiaomi founder Lei Jun made a head-on comparison between the YU7 and the Model Y — much like how he once compared Mi phones to Apple’s iPhones. The YU7’s pricing came in line with analyst expectations, slightly undercutting the Model Y’s 263,500 yuan starting price. BYD’s Tang L SUV, which is smaller than the YU7, ranges from 239,800 to 289,800 yuan.

Lei, who rose to prominence vowing to challenge Apple in China, now sees EVs as the capstone of his entrepreneurial career. He’s pushing Xiaomi beyond smartphones, venturing into chips and AI-powered wearables, and has pledged to invest 200 billion yuan over five years to make Xiaomi a global leader in hardware innovation.

Xiaomi opened pre-orders for the YU7 with a 5,000 yuan deposit. In a surprise announcement, Lei said customers who ordered Xiaomi’s first EV — the SU7 sedan — and haven’t taken delivery can switch to the YU7 within three days.

Shortly after the event, Xiaomi reported over 200,000 pre-orders for the SUV within just three minutes.

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7. Tesla Rolls Out Robotaxi Service, Shares Jump Nearly 9%

Tesla Inc. shares rose sharply after the company launched its long-awaited driverless taxi service, marking a quiet but meaningful step toward what Elon Musk envisions as a transformative business model.

The first robotaxi rides began Sunday in a limited area of Tesla’s hometown, Austin, Texas. Each vehicle had a company employee in the front passenger seat to monitor for safety. Tesla selected a group of loyal retail investors and social-media influencers to test the service and live-stream their experiences.

In one video, Herbert Ong, who runs a Tesla fan account, praised the car’s acceleration and parking capabilities. Another user, @BLKMDL3, said his ride was smoother than with a human driver. Sawyer Merritt, a well-known Tesla-focused investor, called the experience “awesome.”

Tesla opted for an unusually low-key rollout with no formal launch event, relying on word of mouth and media buzz instead. This contrasted sharply with past unveilings like the 2022 “Cyber Rodeo” or last year’s invite-only prototype event in Hollywood.

While Musk has warned that autonomy may not significantly impact Tesla’s financials until at least next year, the debut of the service boosted investor optimism.

Tesla shares jumped as much as 11% on Monday—the biggest intraday gain since April 9—before settling at an 8.7% rise by early afternoon.

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