Japanese stocks are getting lower and lower – Topix stopped 13 days of rally – and it has also declined in Australia. U.S. stock index futures have barely changed after News Nvidia Corp. and Advanced Micro Devices Inc. will meet Tuesday on Wall Street. Neither the US dollar nor the Treasury bonds have changed.
Asian investors will be the Chinese tech stocks as the most valuable company in the United States. Tencent Holdings Ltd. announced its earnings on Wednesday, while Alibaba Group Holding Ltd. will report the next day. Revenue could reveal how two companies in the industry respond to uncertain geopolitical prospects and provide guidance on whether Chinese tech stocks can resume rallying.
“The U.S.-China Trade and Trade Department rebound is rapidly disappearing,” said Frederic Neumann, chief Asian economist at HSBC Holdings Plc. “Investors continue to worry that trade uncertainty is lingering, and there are many more difficult negotiations in the future.
After soft U.S. inflation data, the Bloomberg Market Cap Share Index has barely changed after a 0.7% drop in the U.S. in a few hours. The 10-year yield of the Ministry of Finance is 4.47%.
The S&P 500 index was 0.7% higher, while the Nasdaq 100 rose 1.6%. Bloomberg’s grand seven giant indexes increased by 2.2%.
The easing of trade tensions and a surprising U.S. income season prompted optimism after questions about the ability of U.S. companies to meet high profit expectations. President Donald Trump said the stock market was “much higher”, citing “an explosion of investment and work” as he said Saudi Arabia would commit $1 trillion in investment in the U.S.
The Trump administration plans to overhaul regulations on the export of semiconductors used in artificial intelligence, abandoning the Biden-era approach that has aroused drastic opposition from U.S. allies. People familiar with the matter say the U.S. is also weighing a deal that will enable the United Arab Emirates to import more than one million high-level NVIDIA chips.
Soft inflation
In April, U.S. inflation had fewer forecasts in moderate prices for clothing and new cars than economists had, suggesting that companies so far had urgent need to pass on the costs of higher tariffs to consumers.
The temporary agreement reached over the weekend to mitigate the trade war with China largely cancels the forecast of how much damage the tariffs will cause to the economy. JPMorgan Chase & Co. has raised its forecast for U.S. growth, previously claiming that the world’s largest economy will fall into recession in 2025.
While derivative contracts continue to slow down at a two-two-point drop rate this year, several Wall Street banks this week predicted a slowdown in December later than previously expected.
Oil has stabilized four days after the trade war optimism and Trump’s hostile rhetoric toward Iran. Gold won a small amount of gains after U.S. inflation data were weaker than expected, prompting businessmen to bets on cutting Federal Reserve rates.
