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 
US Inflation Expected to Ease in June, but Fed Rate Hike Risks Persist Amid Middle East Tensions 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
U.S. Imposes 25% Tariff on Select Brazilian Imports After Section 301 Trade Investigation 
Nikkei Plunges 5% as AI Stock Selloff Spreads Across Asia 
South Korea Raises Interest Rates to 2.75% as Inflation and Weak Won Drive Tightening 
US Stock Futures Fall as Netflix Outlook, Chip Selloff and Iran Tensions Weigh on Markets 
Asian Stocks Slide as Nikkei Leads Losses on Tech Selloff and Rising U.S.-Iran Tensions 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
Gold Prices Slip as Oil Rally Fuels Inflation Fears, Strengthens Dollar 
Port of Los Angeles Posts Record June Cargo Volume as Importers Rush Ahead of U.S. Tariffs 
China Q2 2026 GDP Misses Forecast as Weak Domestic Demand Offsets Export Strength 
Asian Currencies Hold Steady as Middle East Tensions Offset Weaker US Dollar 
Malaysia Q2 Economy Grows 5.8%, Beating Forecasts on Strong Tech Exports and Domestic Demand 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
US Stock Futures Hold Steady as Soft Inflation Data Eases Fed Rate Hike Fears 
U.S. stock markets closed mixed Tuesday as the Nasdaq and S&P 500 slipped due to a sharp sell-off in overbought large-cap tech stocks, while the Dow Jones ended higher on gains in cyclical sectors. The Nasdaq dropped 0.82% to 20,202.89 and the S&P 500 edged down 0.11% to 6,198.01. In contrast, the Dow surged 0.91%, rising 400.17 points to 44,494.94.
Weakness in tech stocks, particularly among megacaps tracked by the NYFANG index—which fell 1.8%—weighed on overall sentiment. Mizuho’s Farz Azarm noted that recent extreme bullishness in tech led to a “massive unwind” of gains.
Low liquidity contributed to volatility, but investor optimism was buoyed by President Trump’s statement that he would not extend the July 9 deadline for global trade negotiations. Meanwhile, the Senate’s approval of Trump’s sweeping tax package sparked debate over its stimulative impact versus its $3.3 trillion cost.
Tesla shares tumbled 5.4% following renewed tensions between CEO Elon Musk and Trump, who threatened to withdraw federal subsidies from Musk’s companies. Despite the tech downturn, the Dow was lifted by economically sensitive stocks, with the Dow Transportation index jumping 2.9%, its strongest single-day rise since May.
Economic data also showed resilience. May job openings rose unexpectedly, while the ISM manufacturing PMI ticked up to 49.0. These indicators, along with Powell’s cautious tone on rate cuts, reinforced expectations for the Fed to hold steady near-term.
Money markets now price in a 21.2% chance of a July rate cut, with 64 basis points projected for 2025. Meanwhile, Macau’s jump in gambling revenue boosted shares of U.S. casino operators, with Wynn, MGM, and Las Vegas Sands each climbing over 7%.
