---
title: "Morning! U.S. stocks hit a new high again! How will the U.S. Inflation Reduction Act affect U.S. stocks?"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/31334011.md"
description: "Good morning, reheated the pizza I made last night 🍕, yummy👍🏻 After hitting a new high on Friday, the US stock market achieved another glorious night, partly because Canada 🇨🇦 withdrew its digital services tax to advance trade negotiations with the US. But the most important reason is the stable interest rates and the upward trend in corporate earnings. The 'wall of worry' in the market is collapsing, and the trumpet of the US stock bull market has sounded. Following new highs for NVIDIA, Broadcom, Microsoft, Meta, Netflix, and HOOD, other tech stocks will also be pulled along by the locomotive, including Amazon, Google, Apple..."
datetime: "2025-07-01T01:06:36.000Z"
locales:
  - [en](https://longbridge.com/en/topics/31334011.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/31334011.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/31334011.md)
author: "[财经俏佳人Shelly](https://longbridge.com/en/profiles/16538470.md)"
---

# Morning! U.S. stocks hit a new high again! How will the U.S. Inflation Reduction Act affect U.S. stocks?

Good morning, reheated the pizza I made last night 🍕, yummy👍🏻

After hitting a new high on Friday, the U.S. stock market achieved another milestone last night, partly because Canada 🇨🇦 withdrew its digital services tax to advance trade negotiations with the U.S. But the most important factor was stable interest rates and improving corporate earnings. The "wall of worry" is crumbling, and the bull market trend is sounding its horn. Following new highs for Nvidia, Broadcom, Microsoft, Meta, Netflix, and HOOD, other tech stocks, including Amazon, Google, and Apple, are likely to be pulled along by the momentum.

Shelly mentioned early on that it was a good time to position in Apple for two reasons: First, while the other "Magnificent Seven" were rising, Apple was consolidating, suggesting a catch-up rally was due. Second, it had hit a strong long-term support level. So, Shelly added to her position at $195.  
  
I hold almost all of the stocks mentioned above. For those that have broken out, I won’t add to my positions now—I’ll wait for a pullback. For those still poised to rise, I’ll look for opportunities to add.  
  
**Here are a few of Shelly’s stock-picking methods: 👇**  
**Avoid stocks below the 30-day, 120-day, or 150-day moving averages**  
**Avoid stocks with a single bearish candle cutting through multiple moving averages**  
**Focus on stocks above the 30-day moving average**  
**More stock-picking tips will be shared in future articles.**  
**But remember, "The Tao that can be spoken is not the eternal Tao." You’ll need to figure it out yourself.**  
  
**With the U.S. stock market performing so well, should we worry about the looming "Big Beautiful Bill"?**  
  
The U.S. is pushing for Trump’s "Big Beautiful Bill," with the final outcome expected tomorrow night or the morning after. Even if it passes the Senate, it will still need to go back to the House for another vote.  
  
The "Big Beautiful Bill" covers four main areas:  
**1.** Tax reform (major tax cuts, minor tax increases)  
The tax cuts are projected to increase the U.S. deficit by about $3.8 trillion over the next decade.  
  
**2.** Spending cuts (healthcare, education, food assistance)  
All spending cuts are expected to reduce the primary deficit by about $1.95 trillion from 2025 to 2034.  
  
**3.** Increased spending (military defense and immigration)  
All spending increases are projected to raise the primary deficit by about $0.48 trillion from 2025 to 2034.  
  
**4.** Raising the debt ceiling (by $4 trillion)  
The statutory debt ceiling would be raised to $40.1 trillion.  
  
**What does this mean for U.S. stocks?**  
  
On one hand, tax cuts boost corporate earnings, lifting related stocks. On the other hand, the resulting fiscal deficit expansion could fuel inflation and interest rate concerns, putting pressure on stocks.  
  
Because of the increased deficit, the "Big Beautiful Bill" might have a short-term negative impact, especially once the debt ceiling is raised and the general account is replenished. But in the long run, the bill is growth- and spending-friendly. So, the U.S. market is likely to advance in a "two steps forward, one step back" pattern.  
  
However, the bull market is the overarching trend and won’t reverse because of this bill.  
  
**Where are the opportunities in U.S. stocks?**  
  
From a sector perspective: Traditional energy, financials, and other industries benefiting from tax breaks and fiscal adjustments will see support.  
  
Additionally, the "Big Beautiful Bill" drives expansion in defense, military, and infrastructure. Defense stocks are likely to be strong performers in the second half of the year, especially around events like military parades, which present speculative opportunities.

Apart from the "Big Beautiful Bill," the 90-day tariff grace period is ending soon. But with improving fundamentals and broader market participation, Shelly believes the uptrend will continue.

BTW, there are so many new IPOs 😵‍💫—it’s overwhelming. Recently, I discovered a big player with an incredibly high IPO success rate. Worth checking out.

Good days! 🌞$ZHOU LIU FU(06168.HK) $Alibaba(BABA.US) $XIAOMI-W(01810.HK) $Tesla(TSLA.US) $NASDAQ Composite Index(.IXIC.US) $NVIDIA(NVDA.US) $Apple(AAPL.US) $Circle(CRCL.US)

### Related Stocks

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## Comments (1)

- **不疾而速 · 2025-07-01T07:39:10.000Z**: Which big shot is good at IPO subscriptions? Seeking guidance from a lovely lady.