Intel (INTC) stock climbed 2.5% to $102.84 following President Trump's reassurance that his proposed $5,000 midterm election payment to American adults will happen indefinitely. The move extended a run that has carried the chipmaker above $100, with the government's $8.9 billion Intel stake now worth approximately $44.6 billion at current prices. Commerce Secretary Howard Lutnick told NBC News that the checks would not be drawn from tax revenue, instead pointing to Washington's Intel holdings as a funding source. "Everybody knows we got just about 500 million shares, and the stock was $20, and now it's $100, so we're up $50 billion," Lutnick explained, highlighting the significant paper profit from the government's investment. The 433.3 million shares acquired for $8.9 billion represent a substantial portion of the government's Intel position, though none of it is cash as the shares remain unsold.
Vice President JD Vance took the primetime speaking slot on Thursday night at the Republican midterm convention in Dallas, delivering a message of unity while acknowledging economic challenges. As reported by Business Standard, Vance urged voters to stick with the Republican party even if they disagree with the Trump administration on some issues, stating "I know there are a lot of people who are watching on TV who aren't always sold, and I want to speak directly to them. Look, I'm not asking anybody to agree with me on every single policy of the administration. What I am asking you to do is recognize the contrast with the radicals and recognize the achievements of the last 18 months." The speech represented a balancing act for Vance as he continues to lay the groundwork for a 2028 presidential bid as the apparent frontrunner and heir to Trump's MAGA movement, even though the president has stopped short of anointing him as his chosen successor. Vance also emphasized populist themes, including a push to curb corporate powers in housing markets and affordable housing concerns that are major headwinds for Republicans ahead of the midterm elections.
President Trump's $5,000 dividend promise has emerged as the central theme of the Republican midterm convention in Dallas, with the president making the pledge contingent on Republican control of Congress. As reported by The Associated Press, Trump promised to send $5,000 to every adult U.S. citizen if Republicans win the House and Senate in November's midterm elections. The $5,000 proposal would carry a price tag exceeding $1.3 trillion if Congress were to authorize payments to the nation's 270 million adults. Trump previously pledged to use savings from the Department of Government Efficiency and revenue from tariffs on foreign imports to distribute payments of $2,000 or more, but none of that came to pass. Ohio Sen. Bernie Moreno is the only ally to embrace the idea, stating he would prepare legislation for the payments, while critics accused him of trying to buy votes at a time when Republicans are trying to maintain slim majorities in Congress. Notably, Vance stopped short of echoing Trump's pledge during his speech, defending the $1.2 trillion plan on television a night earlier, while Trump promptly repeated the pledge when he took the stage after the vice president concluded his remarks.
Financial markets appeared unimpressed by Trump's promise, with interest rates on the 10-year U.S. Treasury note climbing above 4.9% in Thursday afternoon trading, meaning the cost of mortgages and auto loans will likely rise in ways that hurt the middle class. The 10-year Treasury yield had previously held near a three-year high at 4.85%, just weeks before the November midterms. Rising oil prices and mounting fiscal deficits are among the factors keeping yields elevated, with foreign buyers reducing Treasury purchases adding further pressure heading into the Federal Reserve's next policy meeting. Trump acknowledged that the Iran war caused energy prices to spike and financial markets to struggle, but defended the decision as necessary to prevent Iran from obtaining a nuclear weapon. The Iran war has stretched more than six months and shows no signs of ending, sending gasoline prices soaring and Republican polls slumping, creating additional economic challenges for the party ahead of the midterm elections.
Economic experts are voicing concerns about the potential effects on inflation and the national balance sheet. Michael Strain from the American Enterprise Institute warned that "Trump would be pouring gasoline on lit inflationary embers and hoping it wouldn't ignite." At the center-left Committee for a Responsible Federal Budget, senior policy director Marc Goldwein agreed with the comparison to Biden's policy and emphasized the potential impact on the deficit. "The idea that we've had fiscal success is backwards and bordering on laughable," he said. "We don't have surpluses to give away." Arkansas Gov. Sarah Huckabee Sanders, a former Trump press secretary, ran into the same conundrum Thursday, stating "You do not build a strong economy by giving things away." The upcoming inflation data due out Friday will serve as another measure of whether the Federal Reserve will hike rates to help cool inflation, even as Trump has repeatedly called for a cut.
At the RNC's midterm convention in Dallas, speakers largely avoided criticizing Trump directly over rate concerns, according to Bloomberg's Josh Wingrove. Many Republicans, including from Trump's inner circle, are in a difficult spot after spending years blasting Biden and other Democrats for their spending. As recently as last week, Vice President JD Vance and Treasury Secretary Scott Bessent blamed Trump's predecessor when asked about current price levels and consumer concern. In the White House briefing room, Vance said he was not interested in assigning blame while noting "how endemic inflation became during the Biden administration." Bessent told CNBC that Biden and his allies "torched the American people" with their approach, arguing "Almost 50 percent of the great inflation came from the out-of-control spending that went on then." This signals unease even among Trump allies over the plan's fiscal cost, with Trump's national approval rating having slipped to roughly 38% according to poll aggregator Silver Bulletin.
Trump has urged supporters to vote as if he were on the ballot himself, remaining wary of turnout without his name at the top in a midterm cycle where Republicans have historically struggled. The U.S. economy is reckoning with persistent inflation and rising interest rates, two forces that have politically undermined Republicans after previously helping them reclaim power from Democrats. Trump claimed the payments would be possible because of the economy's strength, yet consumer sentiment is weak as gasoline prices are increasing because of the war with Iran and wages are struggling to keep pace with inflation. House Democrats, in Texas for a second day of counterprogramming, blasted the Republicans' convention as an opulent spectacle for an out-of-touch president. "As Donald Trump and JD Vance party away for two days, the average American family can't afford the groceries," said Rep. Robert Garcia. Protesters chanting "say it loud, say it clear, Donald Trump's not welcome here" marched down streets, but were stopped by police from getting too close to the site.
