Economy grows at fastest pace in 2 years, Trump administration launches national security probe

Economic Overview - The US economy grew at a revised annualized rate of 3.8% in the second quarter, marking the fastest growth in nearly two years [2][9][12] - Jobless claims fell to 218,000, down from an expected 233,000, indicating a stronger labor market [11][12] Trade and Tariffs - The Trump administration is considering additional tariffs on imports, including robotics and medical devices, which could increase costs for consumers and manufacturers [3][6] - A recent tariff reduction from 25% to 15% on EU cars and parts is expected to ease concerns in the European car sector [23][24] Company News - Starbucks announced a billion-dollar restructuring plan, which includes cutting 900 jobs and closing unprofitable stores [3][31] - CoreWeave expanded its partnership with OpenAI, increasing the total contract value to approximately $22.4 billion for AI model training [32] - CarMax shares dropped 18% after reporting a surprise decline in comparable sales, attributed to consumers rushing to buy vehicles before tariffs were imposed [33] Market Trends - The tech sector is experiencing a pullback, with concerns about a potential tech bubble as major companies engage in multi-billion dollar deals [35][36] - Analysts suggest a barbell strategy for investment, balancing high-growth tech stocks with more defensive, lower-volatility stocks [41][44]