European Stocks Rise as AI Optimism Offsets U.S.-Iran Tensions 
Tokyo Inflation Cools in May, Supporting BOJ’s Cautious Rate Hike Path 
Wall Street Reaches New Record Highs as AI Boom and Iran Ceasefire Hopes Boost Markets 
Oil Prices Jump After New U.S. Strikes on Iran Raise Supply Concerns 
Canada and Germany Advance Major LNG Supply Partnership 
US Dollar Slips as Markets Weigh Potential US-Iran Peace Deal and Oil Price Outlook 
UK Grocery Inflation Slows to 3.1% as Supermarket Price Pressures Ease in May 2026 
Asian Currencies Steady as U.S.-Iran Ceasefire Extension Hopes Weigh on Dollar 
Iran-U.S. Nuclear Talks Remain Unresolved as Strait of Hormuz Risks Keep Markets on Edge 
South Korea Central Bank Holds Interest Rates Steady Amid Inflation Concerns 
S&P 500 Hits Record High as Tech Rally Slows Amid Iran Peace Uncertainty 
US Imposes Fresh Iran Oil Sanctions Despite Progress on Ceasefire Talks 
U.S. Launches New Strikes on Iran as Trump Signals Peace Deal Uncertainty 
U.S. Sanctions Iran’s Strait of Hormuz Authority as Global Oil Markets Face Turmoil 
Nikkei Hits Record High as AI Chip Stocks Power Japan Market Rally 
S&P 500, Nasdaq Hit Record Highs as Iran Ceasefire Talks and AI Rally Boost Markets 
U.S. stocks finished mixed on Tuesday as investors reacted to weaker-than-expected retail sales data and positioned cautiously ahead of a highly anticipated labor market report. The Dow Jones Industrial Average edged higher to notch its third consecutive record close, while the S&P 500 and Nasdaq Composite ended the session lower amid pressure on technology and communication services stocks.
The S&P 500’s communication services sector was the weakest performer of the day, dragged down largely by Alphabet. Shares of Google’s parent company slid 1.8% after it announced a $20 billion bond sale. The move reignited investor concerns about rising capital expenditures among major technology firms as they race to dominate the artificial intelligence market. Amazon, Alphabet, Meta Platforms, and Microsoft are collectively expected to spend hundreds of billions of dollars by 2026 to support AI infrastructure and development.
Broader market sentiment was also dampened by U.S. retail sales data showing no growth in December, defying economists’ expectations for a 0.4% increase. The slowdown was driven by reduced spending on vehicles and other big-ticket items, signaling that consumer demand and economic momentum may be cooling as the new year begins.
Despite the soft data, hopes for a more dovish Federal Reserve gained traction. According to CME Group’s FedWatch tool, the probability of a rate cut in April rose to 36.9%, up from 32.2% a day earlier. Markets still largely expect the Fed to hold rates steady until June, when Kevin Warsh, President Donald Trump’s nominee for Fed chair, could assume the role pending Senate approval.
Rate-sensitive sectors such as utilities and real estate outperformed, benefiting from the “bad news is good news” narrative tied to lower interest rate expectations. However, investors remained cautious ahead of the delayed nonfarm payrolls report, which could significantly influence market direction.
The Dow rose 52.27 points to 50,188.14, the S&P 500 fell 0.33% to 6,941.81, and the Nasdaq declined 0.59% to 23,102.47. Individual stocks saw sharp moves, with Datadog surging nearly 14% on strong earnings, Spotify jumping almost 15% on upbeat guidance, and S&P Global tumbling nearly 10% after issuing a weak profit forecast.
