CNBC Business News Update Market Midday: Stocks Lower, President Trump Tells GOP Lawmakers To Get Budget Bill Done, More Tesla Drivers Are Buying Cadillac EVs 5/20/25
May 20, 2025
The stock market is experiencing a decline, with major indices feeling the pinch amid political instability. President Trump's push for budget cuts is stirring discussions among GOP lawmakers. Meanwhile, a trend emerges as more Tesla drivers are swapping for Cadillac electric vehicles, signaling a shift in consumer preferences. Insights from top business minds help decipher what this all means for your financial future.
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Trump's Medicaid Budget Message
- President Trump urges Republicans to avoid pushing further Medicaid cuts and get the budget bill done.
- The bill currently includes $715 billion in Medicaid cuts, highlighting a tough balance in the deficit debate.
Tax Cuts Raise Deficit and Rates
- Large tax cuts in the budget increase the federal deficit, leading to Moody's downgrade of the U.S. credit rating.
- Interest rates tend to rise when tax cut discussions occur, negatively impacting the economy.
Tesla and Cadillac EV Dynamics
- Elon Musk commits to running Tesla for the next five years.
- Meanwhile, Cadillac EVs attract many new buyers, including about 10% switching from Tesla.