Morning Business Report: Major Saudi investment, AI expansion, and economic shifts

President Donald Trump says he has secured a $600 billion investment from Saudi Arabia into the United States.

(LILAMAX)- President Donald Trump says he has secured a $600 billion investment from Saudi Arabia into the United States. A significant portion of that funding is expected to support U.S. data centers focused on artificial intelligence development. In addition, the U.S. has agreed to sell nearly $142 billion worth of military equipment to Saudi Arabia in a sweeping arms deal.

A new proposal gaining traction in the Senate could provide every American child with a $1,000 savings account at birth. The Invest America Act would also allow up to $5,000 in total contributions from private investors. Supporters say the plan aims to give young Americans a head start on financial independence and promote financial literacy.

The S&P 500 closed higher yesterday, officially turning positive for the year. However, UnitedHealth Group stock fell sharply following the abrupt departure of its CEO, dragging the Dow Jones Industrial Average down with it. Meanwhile, new inflation data suggests consumer price increases are easing, calming some economic concerns.

Spirit Airlines, fresh out of bankruptcy as of March, has announced a new premium travel option. The low-cost carrier will introduce extra-legroom seating, adding over 40 upgraded seats across seven rows near the front of its aircraft. The move comes after years of financial losses and failed merger attempts.

Next year’s Social Security cost-of-living adjustment (COLA) may be significantly smaller. Although the final calculation won’t be made until October, inflation has slowed over the past two years. Still, experts caution that rising tariffs and prescription drug prices could place added pressure on seniors’ budgets.