Global equities extended gains Tuesday as investors doubled down on bets the Federal Reserve will cut rates following a disappointing US jobs report. The MSCI Asia Pacific Index rose 0.6%, with South Korea up 1.4%, echoing Monday’s US rally. Europe’s Stoxx 600 gained 0.4%, led by BP, DHL, and Infineon after strong earnings. US futures ticked higher, with Nasdaq futures +0.3%, S&P +0.2%, and Dow +0.2% as Wall Street eyes more earnings reports and soft macro data.
Market sentiment has turned cautiously risk-on, helped by falling oil prices, AI-driven earnings optimism (especially $PLTR, $NVDA), and a growing belief that “bad news is good news” for Fed action.
Yet Trump’s tariff spree—including fresh duties on India, Canada, Brazil, and the EU—has traders bracing for renewed volatility, especially in commodities and trade-exposed sectors.
Trump’s escalating trade war now includes:
- 35% tariffs on Canadian goods not covered under USMCA
- 50% tariffs on Brazilian semi-finished copper
- 15% on EU goods (pending deal finalization)
- India threatened with new hikes over oil resales
- Tariff loophole closure: Items rerouted through other countries face 40% duties
- Exemptions: Existing shipments, food, clothes, and medicine for aid excluded
Earnings Preview: Tuesday, August 5
Pre-Market Reports:
- Pfizer ($PFE): Analysts expect a YoY decline as COVID-related sales vanish, but eyes are on pipeline progress and RSV vaccine rollout.
- Seanergy Maritime ($SHIP): Bulk shipping rates remain volatile amid tariff headlines.
After-Hours Highlights:
- Advanced Micro Devices ($AMD): AI momentum faces scrutiny as Nvidia dominates headlines. Guidance will be key.
- Snap ($SNAP): Revenue trends and ad business outlook are in focus post-TikTok uncertainty.
- Lucid Group ($LCID), Rivian ($RIVN): Delivery numbers and EV pricing updates eyed amid regulatory shakeups.
- Clover Health ($CLOV), Super Micro Computer ($SMCI), Opendoor ($OPEN), Upstart ($UPST): Smaller caps that may surprise in a sentiment-driven market.
Oil, Tariffs, and Trade Tensions
Oil prices steadied after a three-day drop. Brent hovers around $67, while WTI is near $66 as markets weigh OPEC+’s production boost (+547K bpd in Sept) against Trump’s threats of secondary sanctions on India for Russian oil purchases. JPMorgan and Goldman Sachs warn prices could dip below $60 by year-end due to oversupply.
AI & Tech Watch
Palantir ($PLTR) jumped after Q2 revenue surpassed $1B for the first time, with strong AI demand. SoftBank boosted its stakes in Nvidia, TSMC, and Oracle, signaling a deep push into AI infrastructure. Masayoshi Son is targeting AI supercomputing dominance with Stargate and Arm, positioning SoftBank for trillion-dollar ambitions.
Meanwhile, ChatGPT hit 700M weekly users, up from 500M in March. Business users now exceed 5M.
Macro Trends to Watch
- 94% chance of a Fed cut in September (CME FedWatch)
- Trump replaces BLS head over “bad” jobs data
- Jobs data revisions: May and June slashed by 258K
- Bond yields ease, supporting tech and growth stocks
- Gold nears 1-week high at $3,375/oz, while Bitcoin slips 0.6% to $114,235
Global Market Snapshot
| Index | Movement | Comment |
|---|---|---|
| S&P 500 Futures | +0.2% | Rebounding after last week’s selloff |
| Nasdaq 100 Futures | +0.3% | Tech stocks drive sentiment higher |
| Dow Jones Futures | +0.2% | Led by earnings optimism |
| MSCI Asia Pacific Index | +0.6% | Dip-buying and Fed bets fuel rally |
| Stoxx Europe 600 | +0.4% | Second day of gains, driven by earnings |
| Oil (Brent) | $67.48 (+0.04%) | Stabilizes after Trump’s India rebuke |
| Gold | $3,375 (+0.1%) | Near 1-week high amid geopolitical jitters |
| Bitcoin | $114,235 (–0.6%) | Weaker demand, macro jitters hit crypto |
| US 10Y Yield | 4.13% (–3 bps) | Bond market pricing in Fed cuts |
Today’s Economic Calendar
| Time (ET) | Event |
|---|---|
| 8:30 AM | US Trade Balance (June) |
| 9:45 AM | S&P Global Services PMI (July) |
| 10:00 AM | ISM Non-Manufacturing PMI (July) |
| 1:00 PM | 3-Year Note Auction |
| 1:00 PM | Atlanta Fed GDPNow (Q3 update) |
| 4:30 PM | API Weekly Crude Oil Stock |
Markets are celebrating the prospect of easier monetary policy, but the tone remains fragile amid political interference at the Fed, supply-chain shocks from new tariffs, and global trade fragmentation. If today’s ISM and trade data come in soft again, expect Fed cut bets to solidify—but any hawkish surprises could jolt risk assets.
Stay tuned for $AMD, $SNAP, $RIVN earnings, Trump’s tariff timeline, and oil inventory data that could reset energy market direction.
Related:
Trump Explodes Over Nancy Pelosi Stock Ban
Fed Governor Adriana Kugler Resigns, Opening Door for Trump
Trump Imposes New Global Tariff Rates, Effective August 7
What Happens After Tariff Deadline and What Next 72 Hours Look Like for Markets
Trump’s Tariffs Are Real, But Are His Trade Deals Just for Show?
Figma Is Largest VC-Backed American Tech Company IPO in Years
