US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Asian Stocks Slide as Oil Surge, U.S.-Iran Tensions and Fed Rate Bets Weigh on Markets 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Goldman Sees Foreign Investors Driving India Stock Market Recovery 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
Australian Business Conditions Hold Steady as Easing Cost Pressures Face New Oil Price Risks 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
South Korea’s KOSPI Enters Bear Market Despite Remaining 2026’s Best-Performing Major Stock Index 
Global investors are increasingly looking past the artificial intelligence (AI) boom to longer-term opportunities fueled by massive government spending aimed at tackling geopolitical, technological, and demographic challenges. Asset managers are diversifying across infrastructure, energy transition, healthcare, and defense, seeking to benefit from unprecedented fiscal stimulus on both sides of the Atlantic.
Mark Haefele, chief investment officer at UBS Global Wealth Management, said his firm, which manages $4.5 trillion in assets, is aligning with government priorities by investing in power, resources, healthcare, and defense. He noted that many investors underestimated how deeply fiscal stimulus could impact real and financial assets.
In the U.S., July’s sweeping tax-cut and spending package is set to extend Trump-era tax cuts, boost border security and defense funding, while trimming Medicare and Medicaid. This move will add trillions to national debt but also drive significant capital into government-backed projects. Meanwhile, Europe is seeing similar momentum, led by Germany’s €500 billion infrastructure fund and NATO’s commitment to raise defense spending to 3.5% of GDP.
Antonio Cavarero, head of investments at Generali Asset Management, emphasized that such stimulus programs create structural shifts lasting for years. He highlighted nuclear power, energy infrastructure, biotech, and defense as sectors the market cannot ignore, even though debt sustainability will eventually become a pressing issue.
While AI has powered much of the 14% rise in the S&P 500 this year, Europe’s STOXX 600 shows defense-related stocks surging nearly 68%, underscoring how fiscal priorities are reshaping market leadership.
Saira Malik, chief investment officer at Nuveen, which oversees $1.3 trillion, expects gains to broaden beyond U.S. tech to cyclical sectors, small-caps, and value plays. She advises balanced portfolios with U.S. exposure, while pointing to infrastructure, utilities, and waste management as inflation hedges.
Both UBS and Nuveen stressed that this is a market for active, not passive, management. As Haefele noted, “It’s less of a time for beta and more of a time for active investing.”
