Asian Stocks Slip as Fed Rate Hike Bets and Oil Surge Weigh 
US Tech Giants’ AI Bond Boom Raises Euro Zone Borrowing Risks 
Oil Prices Rise as US-Iran Conflict Threatens Middle East Supply 
Ukraine Sanctions Chief Heads to Washington to Push Russia Bill 
Asian Currencies Mixed as Yen Nears 160, Oil Surges 
Treasury Yields Set to Stay High as Debt Supply Pressures Bond Market 
Gold Prices Slide as Iran Conflict Fuels Fed Rate Hike Bets 
Global Markets Brace for Fed Rate Hike as Oil Tops $91 
Bank of England Sees Surge in Higher-Risk Collateral 
German Retail Sales Drop 3.4% in July 
Australia GDP Beats Forecast, Boosting RBA Rate Hike Bets 
Asian Tech Stocks Slide as Fed Rate Hike Bets Rise 
RBNZ Raises Interest Rate to 2.75%, Kiwi Dollar Slides 
Gold Prices Steady as U.S.-Iran Tensions Lift Inflation Risks 
Bessent Urges Japan on Fiscal Discipline, BOJ Rate Hikes 
Dollar Holds Near Two-Week High as Fed Rate Hike Bets Rise 
Japan Bond Yields Top 3% as Inflation, Fiscal Risks Rise 
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The S&P 500 closed higher Tuesday, driven by a surge in Tesla (NASDAQ:TSLA) shares and renewed optimism over U.S.-China trade talks. Investors are betting that positive outcomes from negotiations will ease tensions and potentially roll back sweeping tariffs imposed earlier this year.
Tesla jumped 5.6%, leading gains among major tech stocks, while Alphabet (NASDAQ:GOOGL) rose 1.4% after reports that OpenAI plans to use Google Cloud to expand its computing capacity. Meanwhile, Microsoft (NASDAQ:MSFT) dipped 0.4%.
Commerce Secretary Howard Lutnick said talks with China were progressing and could wrap up by Wednesday. Hopes that “Liberation Day” tariff levels will be avoided have helped the S&P 500 rebound from its April slump, now trading just below February’s record highs. Horizon Investments’ CIO Scott Ladner noted, “You can’t get to these market valuations with those tariffs becoming reality.”
The S&P 500 rose 0.55% to 6,038.81, the Nasdaq climbed 0.63% to 19,714.99, and the Dow Jones gained 0.25% to 42,866.87. Ten of 11 S&P 500 sectors advanced, led by energy (+1.77%) and consumer discretionary (+1.19%). Trading volume reached 18.5 billion shares, above the recent average.
Investors now await Wednesday’s U.S. consumer price index for clues on the Federal Reserve’s next interest rate move. Meanwhile, the World Bank cut its 2025 global growth forecast to 2.3%, citing trade tensions and uncertainty.
In corporate news, Insmed (NASDAQ:INSM) soared nearly 29% on positive clinical trial results. J.M. Smucker tumbled 15.6% after issuing weak earnings guidance. Snap (NYSE:SNAP) slipped 0.1% after unveiling plans for consumer smart glasses to rival Meta (NASDAQ:META).
Overall, advancing stocks outpaced decliners 2-to-1 on the S&P 500, with the index posting 12 new highs and two new lows.
