US Business Confidence Dips as Tariff Uncertainty Continues to Reign; Trump Administration Aggressively Tackles Drug Prices, Defense Reforms, and China Trade Talks

• Economic optimism among U.S. companies has taken a steep plunge, with only 27% of executives positive about the economy’s outlook in the next 12 months, a significant drop compared to the previous quarters. The cause of this shift from optimism to restraint is primarily uncertainty about tariffs, which is resulting in delays in hiring, investment, and expansion plans. The Trump White House is working on several policy discussions: drug makers, such as Pfizer, have met to discuss “most-favored-nation” drug prices, and the Pentagon is redrafting procurement regulations to address burdensome requirements that discourage defense contractors.

• In market news, US stock futures rose as investors watched renewed US-China trade talks in London, where top US negotiators are pressing for a handshake deal on rare earths. However, Tesla shares faced downgrades and a premarket drop in the face of a very murky outlook, particularly with Elon Musk’s highly publicized feud with President Trump. In another twist, Robinhood Markets shares dropped after S&P Dow Jones Indices announced that it would not make any changes to S&P 500 membership, contrary to recent speculation about its inclusion.