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Regional Powers Cannot Substitute U.S. For Gulf’s Defense Against Iran

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Regional Powers Cannot Substitute U.S. For Gulf’s Defense Against Iran


The U.S.-Israel war against Iran, launched on February 28, saw Tehran take the unprecedented step of repeatedly targeting all six Arab Gulf monarchical member states of the Gulf Cooperation Council with ballistic missile and explosive drones. After the April 8 ceasefire halted hostilities, some in the Gulf states began questioning why larger regional powers like Egypt didn’t do more to help defend them against Iran.

Iran and its regional militia proxies fired missiles and drones at the Gulf states throughout the war, with the United Arab Emirates enduring the brunt of these attacks. The UAE’s world-class air defense found itself under unprecedented strain, and the daily Iranian attacks undermined its carefully cultivated reputation for security and stability that Abu Dhabi strove to uphold for decades.

The Emirates and other GCC states provided grants and investments worth tens of billions of dollars to Egypt to prop up its economy since 2013. The war consequently left some Gulf Arabs wondering aloud why Egypt, which has the largest army of any Arab country, didn’t do more to assist them militarily.

In another unprecedented development of the war, Israel forward-deployed troops to operate Iron Dome anti-rocket and even the new Iron Beam laser defense system to help defend Emirati airspace from these constant attacks.

Tareq al-Otaiba, a former official in the Emirati national security council, wrote a scathing article for the Arab Gulf States Institute, charging that the Iran war exposed “the hollowness of Arab solidarity.”

“In the face of Iranian aggression, several states have stepped up to provide real assistance to the UAE,” he wrote. “Primarily, the United States and Israel have proved to be true allies by offering support through extensive military aid, intelligence sharing, and diplomatic backing.”

“The same support has not come from the Arab world.”

Al-Otaiba also correctly noted that the crisis was the worst the Gulf has seen since August 1990, when Saddam Hussein’s Iraq infamously invaded and annexed the GCC member state of Kuwait. On that occasion, the U.S. responded by assembling a multinational coalition that expelled the Iraqi Army in the ensuing 1991 Persian Gulf War.

Since then, the United States has remained the predominant military backer and arms supplier of the Gulf states, which host various American air and naval forces in large bases throughout the region that Iran bombarded during this latest war.

None of this necessarily means that other regional powers did nothing as the GCC faced its worst crisis since 1990.

Almost a month after the April 8 ceasefire, the UAE Ministry of Defense revealed that Egypt had deployed some of its French-made Dassault Rafale multirole fighter jets to the Gulf state. Egyptian President Abdel Fattah el-Sisi even visited and “conducted an inspection visit to the Egyptian fighter detachment stationed” there with his Emirati counterpart, Mohamed bin Zayed al-Nahyan. How many of these jets, where they are stationed, and whether they played an active role in helping the UAE shoot down drones during the conflict, remains unclear. Nevertheless, their deployment is a symbol of Egypt’s support for its Gulf ally’s defense and certainly isn’t nothing.

France deployed 12 Rafales to the UAE during the war which intercepted several drones. The French fighters expended at least 80 MICA air-to-air missiles, an expensive and unsustainable way of shooting down relatively inexpensive Iranian drones. France has already modified the Rafale’s cannon to intercept such drones more cost-effectively, something the UAE has probably taken note of, given the pending delivery of 80 Rafale F4s Abu Dhabi ordered in December 2021. In the meantime, Egyptian Rafales could conceivably augment their French counterparts if Iranian drone attacks resume in the near future.

The United Kingdom has also armed its Eurofighter Typhoons operating in the Middle East with the cost-effective Advanced Precision Kill Weapon System, which uses relatively inexpensive laser-guided rockets rather than conventional air-to-air missiles to intercept drones. The UAE and several other Gulf states have made large orders of thousands of APKWS rockets after their respective experiences in dealing with unrelenting Iranian drone barrages during the war.

The Wall Street Journal recently reported that Egypt also deployed ground-based air defenses to the UAE and other Gulf states during the war. The systems in question were reportedly the Skyguard Amoun, which integrates anti-aircraft guns and surface-to-air missiles, making it suitable for providing point defense for bases and critical infrastructure. As with the Rafales, it’s unclear if these intercepted anything.

Additionally, Reuters reported that Saudi Arabia’s longtime ally, Pakistan, had deployed 8,000 troops, along with JF-17 Thunder multirole fighter jets and long-range Chinese-made HQ-9 air defense missile systems to the kingdom. Islamabad has stationed troops on Saudi soil during past regional crises, including the Iran-Iraq War and the 1991 Persian Gulf War, to help bolster its defenses. The Iran war was no different. It’s also long been suspected that Pakistan and Saudi Arabia have an understanding in which the former would put its nuclear arsenal at the disposal of the latter if the kingdom faced an existential threat.

Today, Pakistan, Egypt, and Turkey, which also have troops and F-16 fighter jets stationed in GCC member Qatar, are earnestly pushing for negotiations aimed at ending hostilities with Iran. They have a vested interest in doing so: both for regional security and stability and, of course, to mitigate the risk that their troops and military hardware in the Gulf could come under Iranian fire if this regional war resumes.

The war wasn’t the first time the GCC had found its regional allies somewhat lacking in providing an alternative or parallel military support to the U.S. and other Western armed forces.

In the 1980s, leading GCC states supported Saddam Hussein’s Iraq during the Iran-Iraq War with the notable exception of Oman. Muscat has always had the closest ties to Tehran of any GCC state, but that still didn’t spare it from Iranian attacks this year. Back then, Oman shrewdly understood that “only Tehran could potentially act as a balance to an immensely powerful Baghdad,” which Saudi Arabia and Kuwait were financing and helping to become a predominant military power in the region with an enormous army. A mere two years after the Iran-Iraq War ended, Saddam Hussein infamously annexed Kuwait, sending shockwaves throughout the GCC states. In 2019, then-Iranian President Hassan Rouhani even argued that Saudi Arabia and the UAE only survived that crisis because Tehran didn’t cooperate with Saddam Hussein against them.

While the U.S.-led coalition liberated Kuwait and shielded the GCC, these states briefly explored a regional non-American solution for their defense. The subsequent March 1991 Damascus Declaration envisioned the GCC financing a long-term deployment of Egyptian and Syrian troops in Kuwait and Saudi Arabia to defend them against Iraq. Both Arab countries had provided sizable troop detachments to the U.S.-led coalition that fought the Gulf War.

However, grand plans for a permanent force of up to 100,000 Egyptian-Syrian troops were quickly reduced to a much more “symbolic” force of a mere 3,000 to 5,000. Even newly liberated Kuwait expressed its belief that there was “no substitute for Western might.”

Egyptian and Syrian troops left the Gulf by the summer of 1991, and talk of any Egypt-Syria force was abandoned by the end of the year or, in the words of one retrospective analysis, “achieved the status of a footnote in history.”

Whether the current Egyptian and Pakistani deployments will become a similar footnote remains to be seen, though it’s already apparent that, at least as far as some in the GCC states are concerned, they cannot adequately substitute for American military might.



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Intel Has Soared 225% in 2026. Here’s Where the AI Stock Could Be By the End of 2028

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Intel Has Soared 225% in 2026. Here's Where the AI Stock Could Be By the End of 2028


Intel (NASDAQ: INTC) investors are having a phenomenal year so far, as shares of the semiconductor giant have shot up nearly 225% in 2026 as of this writing.

Intel stock has benefited from multiple favorable developments this year. From its improving financial performance to the growing influence in artificial intelligence (AI) chips to the progress that Intel is making in its foundry business, investors have found several reasons to be upbeat about the stock in 2026.

Will AI create the world’s first trillionaire? Our team just released a report on a little-known company, called an “Indispensable Monopoly,” providing the critical technology Nvidia and Intel both need.

Continue »

But can this semiconductor stock sustain its impressive momentum and deliver more gains over the next two and a half years? Let’s find out.

Image source: Intel.

Intel’s valuation is a sticking point for the stock

Intel’s stunning rally in 2026 explains why the stock is trading at a whopping 904 times trailing earnings. That’s well above its price-to-earnings (P/E) ratio of 615 at the end of 2025. Additionally, the forward earnings multiple of 147 is on the expensive side, given that the tech-focused Nasdaq-100 index has a forward P/E ratio of 26.

The valuation suggests that Intel stock may have gotten ahead of itself. Even the stock’s 12-month median price target of $90 points to a 25% decline. What’s more, only a third of the 51 analysts covering the stock rate it as a buy. So, the Wall Street sentiment suggests that Intel stock may not deliver further upside going forward.

However, the company has displayed a penchant for springing huge earnings surprises over the past three quarters. Its bottom line has significantly exceeded analysts’ expectations, and that’s been key to the massive surge in its stock price. The good news for investors is that there are signs that Intel could continue to outpace consensus expectations.

Booming chip demand, new customers, and improving yields could fuel more upside

Intel released its first-quarter results last month. The company’s revenue grew by a solid 7% year over year to $13.6 billion. More importantly, it reported non-GAAP earnings per share of $0.29, up significantly from $0.13 per share in the year-ago period. Analysts would have settled for just $0.01 in earnings per share.

Intel’s data center and AI (DCAI) segment reported 22% year-over-year growth in Q1 to $5.1 billion. Meanwhile, the Intel Foundry segment saw revenue jump 16% year over year to $5.4 billion. These two segments together produced 77% of its top line during the quarter. The good news for investors is that both businesses could continue to grow at healthy rates.

In the DCAI business, for instance, the demand for Intel’s products is outpacing supply, especially for its server central processing units (CPUs). Not surprisingly, the company is focused on increasing factory output to meet strong demand. That’s the smart thing to do, as the massive investment in AI data center infrastructure is turning out to be a tailwind for nearly all the chipmakers.

It is estimated that the top four hyperscalers in the U.S. could boost their 2026 capital spending by 77% to a whopping $725 billion. These companies are looking to get their hands on all the compute hardware they can, which isn’t surprising as they need a lot of chips to satisfy their huge contractual backlogs, which run into more than $2 trillion.

So, all the major AI chip companies, including Intel, are benefiting from this massive outlay. Market research firm Gartner estimates that overall AI infrastructure spending could grow by another 32% in 2027 to $1.89 trillion. So, the solid growth of Intel’s DCAI business should continue to fuel terrific bottom-line growth for the company.

Meanwhile, Intel’s foundry business is gaining impressive traction among customers. The company is reportedly going to manufacture chips for consumer electronics giant Apple. The iPhone maker has been relying on Taiwan Semiconductor Manufacturing for its chip manufacturing. However, TSMC’s capacity is constrained by strong demand from Nvidia and other AI chip designers, which explains why Apple is looking at Intel to make its chips from next year.

Even better, Intel says that the manufacturing yield of its advanced 18A process is improving at a nice clip of 7% to 8% a month. Manufacturing yield is the percentage of functional chips produced from a silicon wafer. A higher yield means it costs less to produce a functioning chip, suggesting a potential jump in profitability.

Importantly, there is a strong interest in Intel’s 18A process from external customers, suggesting that its foundry business could continue clocking solid growth going forward. Also, the improving yield should be a tailwind for the company’s bottom line. In all, it is easy to see why analysts have substantially increased their growth expectations for Intel for 2027 and 2028.

INTC Revenue Estimates for Current Fiscal Year Chart
Data by YCharts

The chart above suggests that Intel’s revenue will increase in the double digits going forward. Of course, the company could do better than that, given new foundry customers such as Apple and the secular growth opportunity in the AI infrastructure space. But even if it achieves $72 billion in revenue in 2028 and maintains its price-to-sales ratio of 10.4 at that time, its market cap could increase to $749 billion. That suggests potential upside of 24% compared to its current market cap.

However, an acceleration in Intel’s growth could lead the market to reward this AI stock with a higher sales multiple, indicating that stronger upside cannot be ruled out. Also, the company’s ability to grow earnings at a much stronger pace due to new customer additions and improving yields in the foundry business could be another tailwind for the stock, suggesting it makes sense to continue holding Intel in anticipation of more upside.

Should you buy stock in Intel right now?

Before you buy stock in Intel, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Intel wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

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*Stock Advisor returns as of May 23, 2026.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.

Intel Has Soared 225% in 2026. Here’s Where the AI Stock Could Be By the End of 2028 was originally published by The Motley Fool



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What a $125 mln Ethereum buy means for Bitmine’s Russell 3000 dreams

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What a $125 mln Ethereum buy means for Bitmine's Russell 3000 dreams


Bitmine Immersion Technologies, the world’s largest Ethereum treasury firm, continues to scale its dip buying amid ETH’s price pullback. 

Notably, the Tom Lee-led firm scooped an extra $125.9 million worth of ETH (60K tokens) via Kraken and BitGo. 

Bitmine
Source: BMNR.Rocks 

Worth pointing out that the 60K ETH haul was still less than the 71K ETH purchase the firm made last week. But it continues to aggressively accumulate during the recent ETH discount window. 

ETH’s price has fallen by nearly 15% in May and traded at $2K, partly accelerated by weak market sentiment and renewed U.S.-Iran war fears.

For Tom Lee, however, the pullback has been an ‘attractive’ buying opportunity to aggressively scale to its 6 million ETH holding target. 

The firm currently holds 5.3 million ETH. If the recent weekly buying pace of 60K-100K ETH continues, Bitmine may hit its 6 million ETH goal in the next two to three months. Nearly 90% of the 5.3 million ETH is now staked. 

Russell 3000 Index to include Bitmine

Separately, the world’s largest ETH treasury firm will score another milestone next month. The London Stock Exchange Group (LSEG) confirmed that Bitmine will be included in the preliminary list of its Russell 3000 Index ahead of the June rebalancing. 

BitmineBitmine
Source: LSEG

The Russell 3000 Index tracks the top 3000 U.S. companies by market size, with strict requirements that the stock stay above $1 and trade on major exchanges like the Nasdaq or the NYSE. 

If finally accepted at the end of June, Bitmine will automatically be included in ETFs tracking the Russell 3000 Index. This would effectively increase its potential inflows, and likely, its uplisting on the Russell 1000 Index in the future. 

The Russell 1000 Index tracks the top 1000 largest U.S. public firms by market cap. However, this update was swept away by the broader crypto market pullback amid renewed fears of a U.S.-Iran war.  

Bitmine stock [BMNR] fell 3.7% to $18.8 on Friday, bringing year-to-date (YTD) losses to 30%. Interestingly, ETH had a similar YTD performance, underscoring the strong correlation between the two. 

BitmineBitmine
Source: Google Finance

Final Summary

  • Bitmine deepened its dip buying with a $126M ETH purchase as the altcoin’s price pullback hit 15% 
  • The firm could easily climb to the Russell 1000 Index, which tracks the largest U.S. firms. 



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Crypto trader sees Hyperliquid, AI tokens leading next altcoin rally

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Crypto trader sees Hyperliquid, AI tokens leading next altcoin rally

Latest developments: Hyperliquid is outperforming much of the crypto market as traders rotate back into higher-risk assets.

  • Hyperliquid’s HYPE token hit a new all-time high after two HYPE ETFs launched in the U.S.
  • Van de Poppe said European traders have increasingly moved to Hyperliquid because perpetual futures trading remains difficult to access on many regulated venues in Europe.
  • He argued Hyperliquid’s push into tokenized stocks, commodities and pre-IPO assets is accelerating broader tokenization trends across crypto markets.
  • Van de Poppe said HYPE could rise to $100 or more if crypto market appetite continues to strengthen.
  • Van de Poppe joined Jennifer Sanasie on CoinDesk’s Markets Outlook.

What this means: Van de Poppe sees Hyperliquid as a short-term winner but Solana as the stronger long-term conviction bet.

  • He said liquidity in crypto markets is concentrating around a small group of protocols generating strong user growth and revenue.
  • Van de Poppe said Hyperliquid currently benefits from that concentration but warned competitors will eventually enter the market and pressure its dominance.
  • He described Solana as successfully transitioning from a “degen” ecosystem into a more institutional blockchain ecosystem.
  • Van de Poppe said Solana’s long-term positioning as infrastructure makes it more attractive than Hyperliquid over a multi-year horizon.

The AI trade: AI-linked crypto projects remain deeply undervalued relative to traditional AI companies, van de Poppe said.

  • He pointed to NEAR and Bittensor as two of the strongest infrastructure plays tied to AI adoption in crypto.
  • Van de Poppe argued valuations for private and public AI companies have become overheated, while crypto AI tokens have fallen sharply despite continued ecosystem growth.
  • He said NEAR’s projected revenue growth from roughly $10 million in 2025 to as much as $100 million this year supports a significantly higher valuation.
  • Van de Poppe said Bittensor’s ecosystem expansion and subnet structure could justify prices between $1,000 and $2,000 if adoption continues.

The privacy debate: Privacy remains one of crypto’s biggest long-term themes, but fully anonymous systems face major regulatory risks.

  • Van de Poppe said institutional and retail users both want more transactional privacy on blockchains.
  • He argued governments are unlikely to support fully anonymous privacy coins over the long term because regulators want visibility into transactions.
  • Van de Poppe said funds in Europe already face restrictions interacting with certain privacy-focused assets.
  • He pointed to zero-knowledge proof systems and permissioned privacy models as more sustainable paths forward for institutional adoption.

Macro outlook: Van de Poppe said bond yields and central bank policy remain the biggest near-term macro drivers for crypto.

  • He said Japanese bond yields are a key market signal and could heavily influence broader risk appetite.
  • Falling yields could support equities and crypto markets, while persistent inflation could create headwinds.
  • Van de Poppe said he does not expect aggressive rate cuts or renewed monetary easing from the Federal Reserve in the near term.
  • He warned additional rate hikes would likely pressure crypto and broader risk assets.



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Unibase surges 20% from key demand zone: Is $0.245 next?

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Unibase surges 20% from key demand zone: Is $0.245 next?


Unibase [UB] has reacted aggressively after hitting a demand zone between $0.078 and $0.105, staging a 20% surge. The token’s price action tested the zone for the second time in a span of two weeks.

With the token’s social volume skyrocketing and Open Interest recording significant gains, could the current momentum last for a potential rally back to

Strong reaction from demand shifts short-term momentum

Price didn’t just tap the demand zone—it reacted decisively and aggressively. The second test of the $0.078–$0.105 range triggered a sharp bounce, suggesting buyers were already positioned around that level.

Repeated reactions like this tend to strengthen a zone’s significance. In this case, the response wasn’t hesitant. It came quickly, which often signals that demand at that level remains active rather than fading.

Unibase Price analysis
Source: TradingView

Rising interest reflects fresh positioning

The move is being supported by a noticeable pickup in activity.  According to the recent on-chain metrics, Unibase’s social volume has surged exponentially over the last 24 hours.

That’s not all; the network’s Open Interest has also gained by over 800K, pointing to new positions entering the market over the same period.

That combination matters. Social spikes alone can be noisy, but when they align with rising Open Interest, it suggests that traders and institutional investors are acting on that attention.

Unibase open interest and social volumeUnibase open interest and social volume
Source: Santiment

Buyers regain control after retest

Structurally, the reaction from demand shifts the short-term bias. Sellers had previously pushed the price into that zone, but the lack of follow-through on the downside has allowed buyers to step back in.

Holding above the range after such a bounce often signals a transition phase—from correction into early recovery. It doesn’t confirm a full trend reversal yet, but it does change the tone of the market.

The next move depends on momentum holding above support

With momentum building, the focus now turns to continuation. Sustained bullish pressure could bring UB’s $0.245 level back into view, especially if participation continues to expand.

If activity fades, however, price may settle into consolidation above the demand zone before attempting another push.

As it stands, the key shift is clear. Unibase demand has held, momentum has returned, and the market is beginning to lean higher again.


Final Summary

  • Unibase bounced 20% after retesting the $0.078–$0.105 demand zone.
  • Rising social volume and Open Interest signal renewed trader participation.



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Trump was supposed to talk about the economy. Instead he asked why toiletries are locked up in pharmacies

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Trump was supposed to talk about the economy. Instead he asked why toiletries are locked up in pharmacies

President Donald Trump, from a toss-up congressional district in New York on Friday, began testing his midterm message that was ostensibly on the economy.

But he veered off-topic right from the start, going off on tangents about voter identification, crime in cities, transgender women in sports and “Dumocrats,” his new chosen moniker for the opposition party. He complained that toiletries are locked up in pharmacies, making them harder to buy, and polled the audience on what he should call his predecessor, former President Joe Biden.

Eventually, he landed on the topic of the speech, telling the crowd that he and his party worked to slash taxes and increase take-home pay, while Democrats opposed the effort at every turn.

“I cut your taxes, cut the taxes on workers, families, small business, who are the soul of this state,” Trump said to the audience at Rockland Community College. Listing off the various provisions of the tax law, the president said: “These are all Republican tax cuts. The Democrats voted against every one of these tax cuts.”

Trump traveled to the Hudson Valley area to appear with Republican Rep. Mike Lawler, who is up for reelection in what will be one of the most closely watched House races this November, for an event meant to promote the tax law Trump signed last year, particularly the quadrupling of the deduction for state and local taxes, which is critical in a high-tax state like New York.

Trump called Lawler “fantastic” and mused about how the congressman was a “pain in the ass” as he badgered the administration on expanding the deduction.

He pulled Lawler onstage during the event, and the congressman thanked the president “for working with me to deliver a big win” for the people in his district. He said that more than 90% of the people in his district were able to fully deduct their state and local taxes.

Also appearing with the president at the event Friday was Nassau County Executive Bruce Blakeman, the Trump-backed Republican candidate for New York governor. Trump said, “Guys like Mike Lawler, guys like Bruce Blakeman, you put them in, they’ll turn it around.”

Trying to reverse a slumping approval rating

The White House has been looking for more opportunities to highlight Trump’s economic accomplishments as his approval rating on the economy has slumped. About one-third of U.S. adults approve of how Trump is handling the economy, according to a new AP-NORC poll, down slightly from 40% at the start of Trump’s second term. Trump had promised to bring prices down, but gasoline prices have surged this year due to the war in Iran.

Lawler is just one of three House Republicans who represent a district won by Democratic presidential candidate Kamala Harris in 2024. Unlike the other two — retiring Nebraska Rep. Don Bacon and Pennsylvania Rep. Brian Fitzpatrick, who’s been a critic of Trump policies — Lawler has chosen to embrace the polarizing president in hopes of not alienating Republican voters who support the party’s leader.

“Look, the people who hate the president — and that’s their sole basis for their vote — are likely never voting for me, and you know, obviously, you need to turn out your base, and you need people energized,” Lawler told The Associated Press in an interview on the sidelines of the White House congressional picnic earlier this week. “Moreover, I have a record in my district that is one I’m very proud of, and a record that appeals to a broad middle.”

Lawler, wearing a red ball cap emblazoned with “Mr. SALT,” the acronym for the state and local tax deduction he fought to include in the bill, added, “I am confident that I will be reelected on my own merits and my own record.”

Trump established a SALT cap in 2017 through his Tax Cuts and Jobs Act. Last year’s law expanded the SALT deduction to $40,000 from $10,000 after arduous negotiations with Republicans, including Lawler, whose district has high local taxes. The law also raised the average tax refund for New Yorkers to more than $3,800, according to data provided by the White House.

“My constituents were seeing anywhere from $5,000 to $20,000 refund checks, which is pretty massive,” said Lawler, who said he wanted to give Trump one of his “Mr. SALT” ball caps.

A competitive House race in New York

Trump formally endorsed Lawler for reelection last year, although it came at a time when the congressman was publicly mulling a run for governor of New York. The endorsement was viewed as a way to keep Lawler in a reelection bid rather than opening up a competitive House seat.

Five Democrats are vying for the party’s nomination to compete against Lawler in the general election. The Democratic primary is June 23.

“Nothing says ‘I don’t understand my district’ quite like Mike Lawler bringing Donald Trump to NY-17 to tout a disastrous economy that’s crushing working families at every turn,” said Riya Vashi, a spokesperson for the Democratic Congressional Campaign Committee.

National Republican Congressional Committee chairman Richard Hudson disputed that, arguing that Trump’s Friday appearance will “absolutely” help.

“His poll numbers are pretty good in Lawler’s district,” said Hudson, a North Carolina congressman. The NRCC has been polling in competitive districts and Hudson said the “president’s numbers are good. Democratic numbers are tanking.”

The remarks were an official White House event and not a campaign one, said Lawler, who noted that more than 5,000 people registered to attend in the first 12 hours that a sign-up was available.

___

Kim reported from Washington. Associated Press writers Joey Cappelletti and Michelle L. Price in Washington contributed to this report.



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Should You Buy, Or Sell Fidelity’s MSCI Industrials Index ETF (FIDU) Today?

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Should You Buy, Or Sell Fidelity’s MSCI Industrials Index ETF (FIDU) Today?


Quick Read

  • Fidelity MSCI Industrials Index ETF (FIDU) delivered 9.13% year-to-date returns as industrial companies benefit from AI infrastructure buildout spending, though the author recommends selling FIDU in favor of more targeted industrial exposure; Nvidia (NVDA) comprises nearly 8% of the S&P 500 with tech at 35% of the index, creating concentration risk that makes industrial stocks relatively safer during potential AI-related selloffs.

  • Hyperscalers’ massive capital expenditures for AI buildout are flowing directly into industrial companies that manufacture construction materials, electrical components, and HVAC systems, positioning industrial stocks to outperform for the next couple of years despite broader market correlation.

  • The analyst who called NVIDIA in 2010 just named his top 10 stocks and Fidelity MSCI Industrials Index ETF wasn’t one of them. Get them here FREE.

The Fidelity MSCI Industrials Index ETF (NYSEARCA:FIDU) is a low-cost ETF that gets you exposure to some of the premier industrial and defense stocks in the market. Most investors view it as a solid play due to surging defense spending and reindustrialization. And while that hasn’t paid off with the S&P 500 still ahead, I’d argue FIDU is worth taking a second look at.

The future could be bright for FIDU for multiple reasons, and some unique characteristics can turn it into a winner.

Industrial stocks are quite hardy in the current environment. Plus, you’re likely underweight on them by a large margin, and you could miss out significantly if the reshoring + reindustrialization plays out as expected in the coming years.

The analyst who called NVIDIA in 2010 just named his top 10 stocks and Fidelity MSCI Industrials Index ETF wasn’t one of them. Get them here FREE.

But even all that might not make it a buy in the end. Let’s first take a look at what’s going on.

FIDU is doing better and better

The past performance might turn off some people just because this ETF underperformed a little, but this is a mistake. In fact, I find it quite impressive that FIDU has managed to almost keep up with the S&P 500 and has actually delivered higher year-to-date returns so far this year at 9.13% vs. 5.8%.

FIDU holds stocks that went through a record-high interest rate hike cycle, plus the tariff drama. The S&P 500 went through the same, but the industrial sector never had Wall Street throwing money at it because of AI.

Things are changing, though. The premium Wall Street is paying for AI is shifting away from software tech companies into hardware and industrial businesses that are on the receiving end of the buildout money.



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