momentum

Trump labels US Democratic nominees ‘jihadists’ in inflammatory remarks made in the Oval Office.

United States President Donald Trump has described Democratic candidates in the midterm US elections as “jihadists” in an apparent reference to Muslim Democratic candidate Abdul El-Sayed securing his party’s nomination for the Michigan primary elections last week.

The pronouncements fuel a proliferating wave of Islamophobic discourse among Republican lawmakers and elected officials in the sprint to lock down ballots ahead of November’s midterm elections.

“We have jihadists being elected all over the place, whether it’s communism [or] jihadism,” Trump told reporters in the Oval Office on Monday. “A friend of mine called up, he said, ‘You know […] you should use the word jihadist’, that’s what’s happening. If you take a look at what’s happening in other countries, I’m not really sure that’s the way we want to live.”

Trump also hurled another tirade against people of Somali descent, of which there are upwards of 260,000 across the US. He called them “not smart”, and said they have “no aptitude” and “nothing going” for them to “tell us how to run our country”.

Edward Ahmed Mitchell, the national deputy director of the Council on American-Islamic Relations (CAIR), a Muslim civil rights and advocacy organisation in the US, said that Trump’s hateful anti-Muslim rhetoric “is putting a target on the back of Muslim elected officials across our nation” and that “this type of dangerous rhetoric is fueling the surge in complaints of anti-Muslim bigotry that our civil rights organization has documented over the past three years”.

Although the president refrained from explicitly naming any individual candidate, hours later, he focused his attention on El-Sayed, who is a son of Egyptian immigrants. The president shared a photo on Truth Social showing the Democratic contender positioned before a gathering that featured two women in headscarves, accompanied by the caption: “They are coming for your home and your belongings.”

Trump also targeted El-Sayed’s victory directly last week, calling him a “hater of Jews” and “hater of Israel” who will bring “filth, crime, death, destruction, embarrassment”.

Several other Republicans also beefed up their anti-Muslim rhetoric, following El-Sayed’s win, parroting remarks that Muslims do not belong in American society. Representative Nancy Mace of South Carolina claimed on social media that “every single Muslim holding public office in America is a Trojan horse, and a threat to both national security and our republic”.

Meanwhile, Alabama Senator Tommy Tuberville labelled El-Sayed a “TERRORIST” and wrote on social media that “Abdulrahman Mohamed El-Sayed is a RADICAL ISLAMIST.”

This outburst occurred just two days after Trump shared a social media post comparing a photo of himself and First Lady Melania Trump with one of El-Sayed and his wife Dr Sarah Jukaku, who is a psychiatrist. The image was captioned: “Two VERY DIFFERENT America’s.”

Speaking on CNN’s State of the Union with host Jake Tapper on Sunday night, the Democratic Senate candidate hit back, saying, “Sarah and I actually like each other”, adding “I don’t know about the first lady and the president, but from what I’ve heard, it’s a bit of a rocky road”.

With less than 90 days to go until the highly anticipated midterm elections come to a head, and with all 435 seats in the House of Representatives and 34 Senate seats up for grabs, Democrats are confronting an ideological schism between moderate leaders and triumphing democratic progressives, some of whom are increasingly being characterised as an endangerment to Washington’s national security establishment altogether.

“People don’t want to have radical lunatics involved in running our country,” said Trump on Monday, “and that’s what we have.”

A spate of recent polls signals that Democrats are gaining traction in both the races for United States Senate and the governor’s mansion in Texas, turning a reliably Republican state into a battleground ahead of the November midterm elections.

On Friday, the nonpartisan research initiative Texas Pulse, helmed in part by the Texas A&M Bush School of Government and Public Service, released its latest public opinion survey into the state’s midterm races.

It found that James Talarico, the Democratic nominee, is now leading the US Senate race by four points, with 47 percent support. His Republican rival, state Attorney General Ken Paxton, trailed at 43 percent.

Those statistics suggested growing momentum for Talarico, who was tied with Paxton in an earlier Texas Pulse poll from June.

Texas Pulse’s findings echo another poll, released on Thursday, that showed Talarico leading Paxton 48 percent to 45 percent. Another 6 percent of respondents said they were undecided.

That poll, conducted by the research firms YouGov and 254 Labs, suggested that Talarico had a significant advantage among undecided and independent voters in the Lone Star State.

An estimated 57 percent of independent voters preferred the Democratic candidate over his Republican competitor, although 20 percent said they remained undecided.

A Fox News poll from late July similarly found that 68 percent of independents are getting behind Talarico, a 37-year-old state representative.

While polls can vary dramatically in the months leading up to an election, the latest survey results are likely to serve as a bellwether for Democratic odds in November’s midterms.

The left-leaning party is hoping to wrest both chambers of Congress from Republican control.

Should Democrats succeed in doing so, their majorities could serve as a bulwark against President Donald Trump’s legislative agenda during the final two years of his presidency.

But analysts believe the Senate may be more difficult to flip than the House of Representatives. While all 435 seats in the House are up for grabs in November, only a third of the Senate is on the ballot.

That makes every Senate race critical to either party maintaining — or retaking — control of the upper chamber.

Cost of living concerns

Texas has long-established bona fides as a Republican stronghold. No Democrat has held statewide office in Texas in more than three decades.

But the open Senate seat in Texas has created an unusually competitive race for Democrats.

Paxton, the Trump-endorsed candidate, defeated the incumbent Senator John Cornyn in the Republican primary in May.

But the longtime state attorney general has generated concerns among Republicans about his ability to appeal to centrist voters.

Paxton’s career in politics has been riddled with corruption scandals. During his tenure as the state’s attorney general, he has faced allegations of abuse of office and misconduct involving a political donor, the latter of which resulted in his impeachment — though he was not removed from office.

He also faced a separate, nearly decade-long securities fraud case that was dismissed last year. His support for the attack on the US Capitol on January 6, 2021, and accusations of adultery have also been sources of criticism.

A Texas Public Opinion Research poll, released last week, found Paxton trailing Talarico by five points, 45 percent to 40 percent.

Notably, that poll suggested that the Democrat leads by 34 percentage points among self-described moderates, with 54 percent support to Paxton’s 20 percent.

Experts like Evan Roth Smith, the lead pollster for Texas Public Opinion Research, credit that upward momentum to a solid campaign pitch.

“Talarico is up because he’s running the race every Democrat in this country should be running. When they go on TV, podcasts and talk to reporters, they should focus on affordability. If we can win on affordability, we can win elections,” Smith told Al Jazeera.

Talarico, a former educator with a seminary background, has largely concentrated his campaign on cost-of-living and economic issues, proposing to raise the federal minimum wage.

He also recently unveiled a plan late last month to end tax breaks for tech companies building data centres.

Paxton’s economic agenda, meanwhile, has focused on tax breaks, including a $25,000 tax deduction for out-of-pocket medical expenses and a $50,000 deduction for first-time homebuyers.

But Texas’s Senate contest is not the only statewide race generating attention for its competitiveness this election cycle.

The gubernatorial race is also getting tighter between Democratic state Representative Gina Hinojosa and Republican incumbent Greg Abbott. That race is neck and neck.

Abbott’s lead has shrunk from six points to a single point, with Abbott at 46 percent and Hinojosa at 45 percent, according to Friday’s Texas Pulse poll.

The Texas Public Opinion Research poll has Abbott leading by three points, with 45 percent support compared with 42 percent for Hinojosa. A wild card, however, remains in the 10 percent of respondents who identify as undecided.

High-beta momentum (SPMO) is starting to resemble past boom-bust cycles, although BTIG is stopping short of calling the trade a bubble.

In a note titled “The Anatomy of a Bubble,” BTIG technical strategist Jonathan Krinsky said the firm is “not calling High-Beta Momentum

Emerging-market stocks stumbled in July as renewed geopolitical tensions, volatile AI-related shares and rising interest-rate concerns interrupted what had been a strong rally earlier this year, Bloomberg News reported Sunday.

For investors, the outlook for developing markets is becoming more complicated. While

A Pacific island has become one of the biggest economic success stories of the year so far.

Taiwan has witnessed a dramatic boom in recent months driven by the mania for artificial intelligence (AI). Earlier this year, its stock exchange soared to become the fifth largest in the world based on market capitalisation, the value of its publicly traded shares, overtaking the United Kingdom, Canada and India.

Much of that upward momentum has been driven by AI and other technology exports highly sought after by the United States.

Last year, the US imported $201bn worth of goods from Taiwan, nearly double its rate from 2024, when it acquired $116bn in imports. In May, Taiwan eclipsed China to become the third-largest source of US imports, after Mexico and Canada.

Experts have described Taiwan’s market acceleration as a return to its status as a “tiger economy” — a term used to capture surging growth in East Asia. Much of the credit, they say, falls to its flourishing technology sector.

“Artificial intelligence helps explain the rising importance of Taiwan,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics.

But critics warn that, while Taiwan’s market remains strong, factors like tumultuous international relations, as well as demographic concerns, could complicate the island’s long-term outlook.

“It seems to be a win-win for now,” said Reza Hasmath, an academic faculty adviser at The China Institute at the University of Alberta. “But Taiwan is just postponing a reality that’s not sustainable.”

An economic boom

Taiwan’s thriving export market helped boost its gross domestic product (GDP) to 8.63 percent in 2025.

That rocket-ship trajectory continued into the first quarter of this year, when the GDP saw an exhilarating 13.69 percent rise.

Government data released on Friday showed that the island is continuing that momentum, with its economy growing an impressive 12.92 percent in the second quarter of the year, which ended in June.

“The GDP growth is going like gangbusters,” said Dexter Tiff Roberts, nonresident senior fellow at the Atlantic Council’s Global China Hub.

Roberts expects the trend to be “long term”, as Taiwan produces about 90 percent of the advanced chips used to power leading AI models.

“That’s not going to go away. We know the world, and the US, needs this,” he added.

While the AI boom is a global phenomenon, the US has become a major market for such chips, with billions of dollars flowing into the industry each year.

US President Donald Trump, meanwhile, has pledged to bolster his country’s status as “the world leader in artificial intelligence”. His administration has claimed to attract more than $2.7 trillion in tech and AI investments since the start of his second term.

To secure US access to Taiwan’s cutting-edge semiconductor technology, the Trump administration signed an agreement under which Taiwan will invest $500bn in the US.

Half of that amount is expected to come in the form of direct investments by Taiwanese semiconductor and tech firms, including through the development of onshore tech manufacturing.

The rest is largely comprised of credit guarantees for additional investments from Taiwan in the US.

Under the agreement, Taiwanese firms would be allowed to import 2.5 times the capacity of their US factories, without fear of steep tariffs.

In a subsequent trade agreement, Taiwan agreed to reduce its tariffs on 99 percent of US exports.

Taiwan has also boosted its tech exports to the US through investments in nearby Mexico, with cross-border plants manufacturing inputs for data centres in Texas.

‘Unbalanced relationship’

But Hasmath, the faculty adviser at the University of Alberta, warns that there are troubling signs on the horizon for Taiwan-US relations.

Trump has long sought to eliminate trade deficits with US economic allies, and he has lashed out at countries that export more to the US than they import.

Hasmath pointed out that Taiwan is building a robust trade surplus with the US, close to $200bn and counting. That could spark a backlash.

“This is an unbalanced relationship and not conducive to Taiwan in the long term,” Hasmath warned.

Trump will not tolerate a hefty trade surplus for long, he added. Hasmath believes the US president will soon look to renegotiate his country’s deals with Taipei.

Roberts at the Atlantic Council, meanwhile, warned that Trump is “mercurial” — and with such a temperament comes “uncertainty”.

Then there’s the question of political upheaval in the US. Trump’s approval ratings are low, and he is ineligible under US law to run for a third term as president.

Demographic problems

While Taiwan’s economic boom is “very real” and “very obvious”, Roberts said there are clear vulnerabilities even on the domestic front.

Taiwan’s traditional export sectors like plastics and textiles are underperforming. Plus, Roberts pointed out that only a small fraction of the Taiwanese population is involved in the AI sector.

“A majority of the younger population is not in hi tech, so that’s a real problem,” he said.

While the booming stock market has sparked a “wealth effect” — those with rising portfolios feel richer and are more inclined to spend — that helps the wider population only to an extent.

With most of Taiwan’s employment concentrated outside of the AI sector, economists have warned that the island could develop what’s called a K-shaped economy, where the wealthy see growth, while the poorer segments of society stagnate or decline.

The chip industry employs up to 350,000 people at most, experts say.

Meanwhile, TSMC, Taiwan’s biggest chip company, makes up to 40 percent of the stock market and provides four percent of the island’s GDP growth. That lopsided proportion is “unsustainable”, according to Hasmath.

Plus, Taiwan has a rapidly ageing population, with roughly a fifth of its population over the age of 65.

The island also has other vulnerabilities. For example, it relies heavily on foreign imports of energy products, particularly oil, and has struggled with water scarcity.

Then, there’s the superpower next door: China. The government in Beijing considers Taiwan, a self-governing island, as its own territory, and it has taken aggressive measures to limit the island’s ability to establish diplomatic relations of its own.

That conflict has added fuel to the debate around Taiwan’s growth, with a spokesperson for the Chinese government reportedly saying the island’s growing proximity to the US tech sector will “drain Taiwan’s economic interests” and “hollow out” the country’s major industry.

Hasmath said that, if the AI boom backfires on Taiwan, all of that ultimately adds up to a “recipe for electoral change, a shift in government” in Taipei.

Asian stock markets extended their sharp selloff on Wednesday as investor concerns over artificial intelligence (AI) valuations deepened ahead of a crucial round of earnings from major U.S. technology companies and the Federal Reserve’s latest monetary policy decision. The decline reflects growing skepticism over whether massive investments in AI infrastructure will generate sustainable profits, while renewed tensions in the Middle East added fresh inflationary risks through higher oil prices.

The market downturn comes after months of extraordinary gains driven by optimism surrounding AI, particularly among semiconductor manufacturers and technology giants. However, disappointing earnings signals and concerns over corporate cash flows are prompting investors to reassess whether the sector’s lofty valuations remain justified.

Asian Markets Extend AI Driven Selloff

Technology heavy markets across Asia led the global decline as semiconductor stocks came under intense pressure.

South Korea’s KOSPI plunged more than 11 percent, reaching its lowest level since April after suffering another double digit loss a day earlier. Taiwan’s benchmark index dropped 5 percent, while Japan’s Nikkei declined 2.6 percent. The broader MSCI Asia Pacific index excluding Japan also fell sharply, highlighting widespread investor caution across the region.

The weakness was concentrated in technology stocks that have largely fueled this year’s market rally through expectations of sustained AI demand.

Chip Stocks Face Growing Scrutiny

Semiconductor companies remained at the center of the selloff despite reporting robust financial results.

South Korean memory chip giant SK Hynix reported operating profits that increased more than sixfold compared with the previous year. Nevertheless, its shares fell 9 percent after investors judged the results against exceptionally high expectations.

Market participants are increasingly demanding stronger evidence that companies can convert enormous AI related capital expenditure into long term profitability. Investors are also seeking clearer commitments regarding shareholder returns and long term supply agreements before assigning premium valuations.

The reaction illustrates how market expectations have evolved from rewarding growth alone to demanding measurable financial returns.

Big Tech Earnings Become Critical Test

Attention has now shifted to earnings from Microsoft and Meta, which are expected to provide important insight into the financial sustainability of AI investments.

The results follow disappointing updates from Alphabet and Tesla, whose weaker cash flow performance raised concerns that rising AI spending may be placing increasing pressure on corporate finances.

Investors will closely examine whether major technology companies can demonstrate that billions of dollars invested in AI infrastructure are producing corresponding improvements in revenue growth and profitability.

Failure to provide convincing evidence could accelerate the ongoing market correction.

Oil Prices Rise as Middle East Tensions Return

Geopolitical developments added another layer of uncertainty after renewed military activity between the United States and Iran pushed energy prices higher.

Brent crude rose more than 3 percent while West Texas Intermediate crude also gained over 3 percent following reports of Iranian ballistic missile launches and renewed concerns over the security of shipping through the Strait of Hormuz.

The waterway remains one of the world’s most strategically important energy corridors, and any disruption raises fears of tighter global oil supplies and renewed inflationary pressures.

Higher energy prices have complicated the outlook for financial markets by increasing uncertainty over future monetary policy.

Federal Reserve Decision in Focus

The Federal Reserve’s policy announcement has become increasingly significant as investors attempt to balance slowing market sentiment against persistent inflation risks.

Markets remain divided over whether the central bank will maintain current interest rates or opt for another increase. Rising oil prices have strengthened expectations among some analysts that policymakers may adopt a more cautious stance toward inflation.

A more hawkish outcome could place additional pressure on technology stocks, whose high valuations remain particularly sensitive to higher borrowing costs.

Analysis

The latest market correction suggests that the AI investment narrative is entering a more demanding phase. Investors are no longer rewarding technology companies solely for expanding AI infrastructure but increasingly expect tangible financial returns from unprecedented levels of capital expenditure.

At the same time, renewed geopolitical tensions in the Middle East have introduced fresh inflation risks through higher oil prices, complicating the Federal Reserve’s policy choices and adding further uncertainty to global financial markets. Higher interest rates typically reduce the attractiveness of high growth technology stocks by increasing financing costs and lowering future earnings valuations.

While the long term outlook for artificial intelligence remains strong, the market appears to be transitioning from optimism driven by expectations to a phase focused on profitability, efficiency, and sustainable returns. Companies that fail to demonstrate clear commercial benefits from their AI investments may continue to face heightened investor scrutiny, making upcoming earnings reports a defining test for the next phase of the global AI driven market cycle.

With information from Reuters.

Two games, two wins and the U.S. is already through to the knockout stage of a World Cup it is hosting.

For forward Folarin Balogun, things couldn’t be going any better.

“You know, if someone said before the tournament, two games and you’d be through to the knockouts, I think we all would have taken it,” he said. “We’re delighted.”

On Monday, the U.S. got more good news when Christian Pulisic, its talisman, returned to training after missing 10 days because of a calf injury. So Balogun said the last thing the team wants to do is take its foot off the gas for Thursday’s group-play finale with Turkey.

U.S. forward Folarin Balogun celebrates after scoring against Paraguay during the teams’ opening World Cup match at SoFi Stadium on June 12.

(Robert Gauthier/Los Angeles Times)

“The object and the aim is to go out there and win,” he said before Monday’s practice at the Orange County Great Park in Irvine. “Three wins, three games. We can create history.”

He is unlikely to be part of that effort, however. Balogun, Tyler Adams, Chris Richards and Antonee Robinson all picked up yellow cards in the first two U.S. games, and a second booking against Turkey would leave them ineligible to play in the round of 32 match.

There’s no need to risk that in a game that will change neither team’s World Cup fate — the U.S. already won the group while Turkey has been eliminated and will fly home after the match. But protecting their momentum is important for the Americans, who last won their group in 1930 and have won a World Cup knockout-stage game just once.

“Game to game, even minute to minute, half to half, it ebbs and flows,” captain Tim Ream said of momentum. “You can wrestle momentum away from teams and create your own. Every goal, every block, every set play — everything that we’re doing is together. That’s how we create the momentum.”

U.S. defender Chris Richards kicks the ball in front of Paraguay forward Julio Enciso while midfielder Tyler Adams looks on.

(Kelvin Kuo/Los Angeles Times)

“Momentum is everything,” defender Richards added. “Going into the last game with the group stage with two wins, hopefully we can finish with the third.”

With decisive victories over Paraguay and Australia, the U.S. has consecutive wins in a World Cup for the first time in 96 years. It has never won more than twice in a tournament, so beating Turkey would make history — and a bold statement.

“The belief’s always been there,” forward Alejandro Zendejas said. “Not just now, but in the past FIFA windows. We’ve been playing against good national teams, respected national teams, and we’ve been coming out with a positive result. So just keep on believing in this group.”

Zendejas said one reason the team is playing so well is because the players genuinely like being around one another. And unlike other national team camps, which rarely last more than 10 days, these 26 players have been together nearly a month, which has helped bond a roster that was already tight.

“The vibes are high, the team is having fun,” he said. “Training is intense, but in a good way. That’s since the beginning of this whole camp.

“It’s fun being around these guys. There’s a bunch of jokes. But when it comes to work and training and games, we get serious. And we’ve been showing that.”

With coach Mauricio Pochettino likely to rotate his squad against Turkey to protect the players with yellow cards, Zendejas is among those who figure to see the field for the first time in the tournament. Midfielder Cristian Roldan, who is in his second World Cup but has yet to play, was in line to get some minutes as well, but he was held out of training Monday with what was vaguely described as a muscle strain. His status is listed as day to day.

Pulisic’s role in Thursday’s game could be Pochettino’s toughest decision. The team’s best player, Pulisic was electric in the first half of the opener with Paraguay, setting up two goals. But he hasn’t played since, and his absence was noticeable against Australia.

So while getting him back on the field would be a positive, an additional week’s rest and recovery also would be valuable since there will be no room for error in the knockout stages.

Olid had left Hearts hinting that, despite winning the league title for the first time in their history, she was not going to be given the financial backing she wanted next season.

There is a sense that the domestic women’s game has lost a bit of the momentum in terms of public excitement and backing from their parent clubs it had when Celtic were first to go full-time professional in 2019 and Rangers, Hibs and Hearts soon followed.

However, former Partick Thistle manager Brian Graham suggested: “Over the last five or six years, the standard of the women’s game in Scotland is definitely getting better – and it’s only going one way.

“I would love to see it getting supported and backed a little bit more at times. We want to see more fans in here today.”

As for the Hampden protagonists, Graham thought Celtic deserved their victory because of the way they defended resolutely after their goal – and because Rangers did not make the most of their one-player advantage.

“They lost the League Cup to Glasgow City, they lost the league on the last day, now they’ve lost the Scottish Cup on the last day of the season.” he pointed out.

“So she [Crichton] will be bitterly disappointed because, over the piece, she’s had a good first season but just not got over that final hurdle for silverware.

“However, Leanne has done an incredible job after coming from Motherwell as assistant.”

Graham agreed with Scott – that Celtic have the momentum going into the new season.

“Believe me, there will have been a bit of self-doubt among these Celtic players this afternoon knowing the fact they had not beaten Rangers in 10 games,” he said.

“They know it’s not been the season they wanted, but winning here, it will give them that belief going into next season.

“Congratulations to him [Scott] getting the first piece of silverware in a short period of time.

“He knows he’s going to have a big summer. He’ll have payers going out, he’ll have players coming in. It’s a rebuild situation at Celtic now.

“This is where he can really put his stamp on it moving on to next season. You can really judge him next season.

“Hearts winning the league and their manager leaving, there’s going to be a big upheaval there too.

“They’ll want to get players in, but they have a strong nucleus of a squad, although you never know, some of those players might get moves and the manager coming in.”

Former Rangers midfielder Clare Gemmell pointed out that it is “phenomenal” that the SWPL has had five different winners in the last five seasons.

Will Celtic build on their Hampden triumph as they aim for a second title and first since 2024?