Global Markets Rally on Tech, Defense Stock Gains
Economists expect inflation to remain broadly steady, with only a modest uptick in core prices. Analysts say the data is unlikely to alter the Fed’s current policy stance.
On social media, US President Donald Trump warned that “the country may have to repay billions, or even trillions, of dollars generated from tariff revenues if the Supreme Court rules against the tariffs.”
Markets are also monitoring developments around Fed Chair Jerome Powell, who is facing a criminal investigation. Analysts describe the probe as an unprecedented challenge to the central bank’s independence. While immediate market fallout has been limited, concerns over the Fed’s autonomy are expected to dominate sentiment through 2026.
US Treasury Secretary Scott Bessent convened finance ministers from the EU, Australia, Canada, France, Germany, India, Italy, Japan, Mexico, South Korea, and the UK to discuss securing and diversifying supply chains for critical minerals, particularly rare earths.
In corporate news, Paramount filed suit seeking disclosure of key financial data to ensure shareholders can evaluate the proposed acquisition of Warner Bros. Discovery.
Bond and commodity markets reflected mixed moves: the US 10-year Treasury yield slipped 1 basis point to 4.18%, the US Dollar Index edged up 0.1% to 99, gold added 0.1% to $4,598 per ounce, and Brent crude rose 0.3% to $63.8 a barrel.
The New York Stock Exchange ended Monday in positive territory. Bank shares, however, came under pressure after Trump urged a one-year 10% cap on credit card interest rates. Wells Fargo and Bank of America fell about 1%, JPMorgan Chase dropped 1.5%, Citi slid 3%, and Capital One tumbled roughly 6%.
Technology stocks provided support. Apple gained 0.3% after unveiling next-generation artificial intelligence and cloud initiatives with Google based on the Gemini model. Parent company Alphabet closed 1% higher, lifting its market capitalization to $4 trillion.
Meanwhile, Nvidia and Eli Lilly announced a $1 billion, five-year joint research venture, sending Eli Lilly shares up 1.6%.
Investors are awaiting earnings reports this week from JPMorgan Chase, Bank of America, Morgan Stanley, and Goldman Sachs.
Major US indexes advanced: the Dow Jones Industrial Average rose 0.17%, the S&P 500 added 0.16%, and the Nasdaq climbed 0.26%. Both the Dow and S&P 500 closed at record highs of 49,633.35 and 6,986.33 points, respectively. US stock futures pointed lower early Tuesday.
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