China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
France Faces Long Road to Economic Rebalancing as Weak Demand and High Rates Weigh, Says Citi 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge 
US Dollar Hits One-Year High as Hawkish Fed Outlook Overshadows Middle East Developments 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict 
Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
Wall Street Ends Mixed as Alphabet Slumps, Middle East Developments and Fed Outlook Weigh on Markets 
Dollar Holds Firm as U.S.-Iran Talks Ease Tensions, GBP/USD Slips Amid UK Political Uncertainty 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Oil Prices Drop as U.S.-Iran Talks Ease Supply Concerns 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
U.S. stocks fell Thursday for the third consecutive session, with the S&P 500, Dow Jones, and NASDAQ all closing lower as stronger-than-expected economic data tempered hopes for aggressive Federal Reserve rate cuts. At the close, the Dow dropped 173 points, or 0.4%, the S&P 500 fell 0.5%, and the NASDAQ slipped 0.5%, extending a pullback from recent record highs amid concerns over valuations and Fed policy.
Investor sentiment weakened after Fed Chair Jerome Powell warned earlier this week that there is “no risk-free path” as the central bank balances inflation risks with a softening labor market. The remarks came just days after the Fed’s 25-basis-point rate cut, leaving markets uncertain about how many more reductions will follow this year.
Fresh data reinforced the picture of U.S. economic resilience. Weekly jobless claims dropped to 218,000, well below expectations, while the final reading of second-quarter GDP showed growth of 3.8%, up from earlier estimates of 3.3% and 3.0%. The strong growth data and low unemployment filings pushed Treasury yields higher, weighing heavily on technology stocks.
Fed projections last week indicated another half-point in cuts may be on the table before year-end, but several policymakers signaled fewer moves could be likely. Analysts noted that hawkish implications from the data may pressure equities, especially given that expectations of Fed easing had fueled much of the rally. Traders now await Friday’s release of the Fed’s preferred inflation gauge, the PCE price index, for further clarity.
Markets are also grappling with political risk as a potential U.S. government shutdown looms. A Senate rejection of a stopgap spending bill has left federal agencies preparing contingency plans that could trigger mass layoffs if no agreement is reached.
On the corporate front, Nvidia gained nearly 1% as investors bought into recent weakness, while Intel rose on reports it approached Apple for a potential investment. Earnings news was mixed: Stitch Fix and CarMax plunged after weak results, while Accenture beat revenue forecasts and announced an $865 million restructuring to focus on digital and AI demand.
