Japan Bond Yields Top 3% as Inflation, Fiscal Risks Rise 
Oil Prices Rise as US-Iran Conflict Threatens Middle East Supply 
Treasury Yields Set to Stay High as Debt Supply Pressures Bond Market 
US Tech Giants’ AI Bond Boom Raises Euro Zone Borrowing Risks 
Australia Current Account Deficit Widens to A$27.2 Billion 
Brazil, US Resume Tariff Talks as Trade Tensions Persist 
Gold Prices Slide as Iran Conflict Fuels Fed Rate Hike Bets 
Ukraine Sanctions Chief Heads to Washington to Push Russia Bill 
Canada Backs €100 Billion Global Defence Bank 
RBNZ Raises Interest Rate to 2.75%, Kiwi Dollar Slides 
Dollar Holds Near Two-Week High as Fed Rate Hike Bets Rise 
Global Markets Brace for Fed Rate Hike as Oil Tops $91 
India Manufacturing Growth Slows to Five-Year Low in August 
South Korea Unveils Record $597 Billion 2027 Budget to Boost AI and Chips 
German Retail Sales Drop 3.4% in July 
Asian Currencies Weaken as Dollar Rises, Kiwi Slides After RBNZ Hike 
Bank of England Sees Surge in Higher-Risk Collateral 
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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.
