Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Oil Prices Rise as U.S. Strikes on Iran Raise Strait of Hormuz Supply Fears 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
U.S. stocks closed higher Thursday, driven by Nvidia’s strong performance, even as trade policy concerns resurfaced. The S&P 500 gained 0.4%, the Dow rose 0.3%, and the Nasdaq added 0.4%. All major indexes are on track for weekly and monthly gains, with the S&P 500 up 5.7% this month and the Nasdaq leading with a 9.5% jump.
Investor sentiment was rattled by a legal tug-of-war over former President Donald Trump’s proposed reciprocal tariffs. A federal appeals court reinstated the tariffs Thursday, days after the Court of International Trade blocked them, ruling Trump exceeded his authority under the International Emergency Economic Powers Act. Both sides are expected to present further arguments in early June.
Despite the uncertainty, Nvidia (NASDAQ: NVDA) rallied on strong first-quarter earnings, fueled by high demand for AI chips and data center servers. The company also noted an $8 billion sales impact from U.S. export restrictions to China but remained optimistic. Analysts, including Wedbush, called the forecast “impressive,” reinforcing Nvidia’s role as a key AI growth indicator.
Tesla (NASDAQ: TSLA) also gained after CEO Elon Musk announced his departure from the Trump administration to focus fully on Tesla. Meanwhile, Kohl’s (NYSE: KSS) rose on a narrower-than-expected loss and reaffirmed annual targets, while Best Buy (NYSE: BBY) fell after cutting its 2026 outlook due to tariff risks.
Economic data painted a weaker picture, with Q1 GDP contracting 0.2%, revised slightly from the initial 0.3% decline. Unemployment claims rose to 240,000 last week, signaling softening labor conditions. Markets now turn to upcoming comments from several Federal Reserve officials for insight into future monetary policy.
