Happy Tuesday! Wall Street is watching closely as President Trump’s latest legislative push gains traction, promising sweeping tax cuts, major shifts in federal spending, and potential market disruption across industries. Read on to see which sectors stand to benefit and which ones could get left behind.

Also, Wall Street just shrugged off a historic blow to America’s credit reputation — should you? On a day when headlines screamed “downgrade,” the markets marched higher, leaving investors wondering: is this a sign of strength, or complacency? Read on for all the details.

In today's edition

• MARKET RECAP

• FIVE ZINGERS

• TOP TRADING SETUPS

• MARKET HISTORY

• ONE FOR THE ROAD

Trump's 'Big Beautiful Bill' Advances: Here's Who Wins And Loses

A controversial new legislative package backed by President Trump is making waves on Capitol Hill — and on Wall Street.

Branded by Republicans as “One Big, Beautiful Bill” and slammed by Democrats as “One Big Beautiful Betrayal,“ the legislation is packed with sweeping tax changes, defense spending boosts, and cuts to social programs. The sweeping proposal is already shaking up sectors as investors brace for the ripple effects if the bill becomes law.

Defense giants, high-income earners, and certain tech players stand to gain, but not everyone is celebrating. Clean energy, healthcare, and even the electric vehicle market would likely take a hit. What other sectors should investors be watching or avoiding? Read on for the full scoop.

Don’t miss Benzinga’s must-attend virtual forum on the rapidly evolving ETF market! Join us on June 5th at 10 am ET to explore the latest trends in crypto ETFs, thematic ETFs and innovative structures. Gain valuable insights into strategies reshaping how financial advisors guide clients and how retail investors adjust their portfolios.

Yesterday: U.S. indexes eked out small gains on Monday as investors looked past the United States’ credit downgrade by Moody’s — the third and final major agency to strip the U.S. of its triple-A status. With another day of gains, the S&P 500 pushed its winning streak to six consecutive sessions. Defensive sectors such as health care and consumer staples outperformed, while growth and energy stocks lagged. Treasury yields opened higher, with the 10-year and 30-year yields jumping over 4.5% and 5%, respectively, at their session highs. However, both finished relatively flat, with the 10-year yield hovering around 4.45% and 30-year at 4.9%. Meanwhile, earnings season winds down with S&P 500 earnings on track for 13% growth, as investors turn their attention to major retail results and potential tariff impacts.

On Our Radar: Analysts will be monitoring a number of Federal Reserve speakers throughout the day with upcoming remarks from Tom Barkin, Susan Collins, Alberto Musalem, and Adriana Kugler. On the earnings front, Palo Alto Networks (PANW), Toll Brothers (TOL) and Keysight Technologies (KEYS) headline a slate of companies that will report after the bell today.

Smart Money, Sour Quarter: Billionaire investors like Buffett, Ackman, Icahn and Soros faced an unexpected reckoning as Q1 challenged even their boldest strategies. While their long-term returns remain impressive, this quarter showed that no one’s immune to market shakeups — especially the icons.

Net-Pause: Shares of Netflix got a rare downgrade despite its 400% run-up over the past three years. Discover why this analyst believes future gains are already priced in and why it might be time to hit the pause button and rotate into other internet names.

Biotech Buzz: Protagenic Therapeutics was the biggest winner on Monday as shares surged more than 300% following news of a definitive all-stock merger agreement with Phytanix Bio. Read on to see why Wall Street is buzzing.

Boardroom Buys: With UnitedHealth’s stock plunging more than 20% last week, insiders — including the CEO and CFO — stepped up and purchased millions of shares, signaling confidence in a rebound. Is this bold buying, or just damage control?

Altitude Loss: After a 40% rally last week, shares of Archer Aviation hit some turbulence on Monday as investors cashed in on the huge run. But with Olympic glory on the horizon, and a new partnership with Palantir, analysts say this dip is just a short layover before liftoff again.

Volatility is shaking the market — but some traders are using it to outperform the S&P. This Wednesday at 6 PM ET, join us live to get a breakdown of the specific strategies, tools and setups that are working right now. You'll see how our research team spots momentum before major moves — and how to apply the same process to your own trades.

On This Day…

Five major banks — JPMorgan, Barclays, Citigroup, RBS, and UBS — were fined a combined $5.7 billion for rigging the foreign exchange market. Traders from these firms had secretly coordinated to manipulate currency prices, using chat rooms nicknamed things like “The Cartel.” The scandal rocked the $5 trillion-a-day forex market and led to felony pleas, record penalties, and a renewed push for tougher financial oversight.

QUOTE OF THE DAY

"Compound interest is the eighth wonder of the world.”

— Albert Einstein

America's Credit Strength Just Got Cut Again: Should You Panic?

Moody’s just stripped the U.S. of its last pristine AAA credit rating, citing rising debt, mounting interest costs, and a lack of political will to fix either.

This downgrade places all three major credit agencies (Moody’s, Fitch and S&P Global Ratings), in agreement: America is no longer a perfect borrower.

While the headlines around the news sounded dire, the markets barely flinched as they shook off a pre-market selloff with all three major indexes finishing in positive territory on Monday.

Some experts say the market’s swift recovery was because the downgrade didn’t change much in practice. Key financial rules have evolved, making today’s U.S. debt just as usable and desirable as it was last week.

Still, others warn that repeated downgrades could erode long-term confidence, especially if Washington doesn’t get serious about its debt and spending issues. The bigger question isn’t whether this matters today, but what it means going forward.

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