President Trump Signs Sweeping Tax Bill, S&P Hits Record High, Nvidia Nears $4 Trillion, Apple Unveils iOS 26 Spam Filter

President Trump signed his sweeping tax and spending package into law, setting the stage for big shifts in corporate taxes, consumer spending, and tech-sector investments. Markets took the news in stride, with the S&P 500 and Nasdaq 100 climbing to fresh record highs. Nvidia Corp's CEO Jensen Huang's stock closed at $159.34, just shy of the historic $4 trillion market cap milestone. Apple is rolling out a new feature with iOS 26 to curb spam by automatically filtering and silencing unwanted texts. Alphabet's Google has been hit with an antitrust complaint by a group of independent publishers from the European Union.

President Donald Trump signed his "one big beautiful" tax and spending package into law on July 3, 2025, marking a significant shift in American financial policy. The legislation, passed by the Senate on Tuesday and the House on Thursday, includes permanent extensions of the 2017 tax cuts, new tax breaks for various income sources, and substantial spending cuts to social safety net programs.

The most notable provisions of the legislation include:

1. Permanent 2017 Tax Cuts: The bill makes permanent the 2017 tax cuts, which lowered tax brackets, increased standard deductions, and boosted the child tax credit. These changes will benefit higher earners and families with children. The standard deduction, for instance, will increase to $15,750 for single filers and $31,500 for married filing jointly by 2025 [1].

2. State and Local Tax Deduction (SALT): The SALT deduction cap, which was $10,000 under the 2017 tax cuts, will temporarily rise to $40,000 starting in 2025. This cap will revert to $10,000 in 2030, with annual increases of 1% between 2025 and 2029. This change will benefit taxpayers in high-tax states, who have been affected by the previous cap [1].

3. Child Tax Credit: The maximum child tax credit will permanently increase to $2,200 per child, starting in 2025. The refundable portion of the credit, known as the additional child tax credit, will also become permanent and adjust for inflation. However, this increase may not benefit all children, particularly those from low-income families [1].

4. Senior "Bonus" Deduction: Older Americans will receive an extra tax deduction, dubbed a "bonus," for tax years 2025 through 2028. This deduction will be available to individuals with up to $75,000 in modified adjusted gross income and $150,000 if married and filing jointly [1].

5. Medicaid and SNAP Cuts: The legislation includes deep spending cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP). These cuts may lead to increased healthcare costs and reduced access to food assistance for millions of Americans [1].

6. Corporate Taxes and Tech Sector: The bill does not include significant changes to corporate tax rates, but it may have indirect effects on the tech sector. For instance, Apple is rolling out a new feature with iOS 26 to curb spam, and Alphabet's Google has been hit with an antitrust complaint by a group of independent publishers from the European Union [2].

Markets reacted positively to the news, with the S&P 500 and Nasdaq 100 climbing to fresh record highs. Nvidia Corp's stock closed at $159.34, just shy of the historic $4 trillion market cap milestone. These market movements suggest that investors view the legislation as a positive for corporate earnings and consumer spending.

However, the long-term effects of the legislation remain uncertain. The spending cuts to social safety net programs may have negative consequences for low-income Americans, while the tax cuts may benefit higher earners. The impact on the economy and stock market will depend on how these changes are implemented and how consumers and businesses respond.

References:
[1] https://www.cnbc.com/guide/what-trumps-one-big-beautiful-bill-means-for-your-money/
[2] https://www.cnbc.com/guide/what-trumps-one-big-beautiful-bill-means-for-your-money/