China Home Prices Fall Again in June Despite Slower Pace of Decline 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Oil Prices Climb as Trump Escalates Iran Pressure, Strait of Hormuz Risks Grow 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
Dollar Slides as Softer US Inflation Dims Fed Rate Hike Expectations 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
AI Chip Stocks Face Valuation Pressure as Investors Shift Toward Big Tech and Software 
ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Brazil Weighs IP Curbs, Patent Suspensions After New U.S. Tariffs 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Gold Prices Head for Biggest Weekly Loss Since June as Fed Rate Outlook Weighs 
IEA Warns China Rare Earth Export Curbs Could Threaten $6.5 Trillion in Global Production 
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.
