A strong week for global equities cooled in Asia, where stocks ended a six-day winning streak, while US futures edged higher early Friday as traders digested a whirlwind of political theater, corporate earnings, and macro crosscurrents.
The MSCI All Country World Index dipped 0.2% as Asian markets retreated, with Hong Kong’s Hang Seng down 1.1% and Japan’s Topix falling 0.8%, pulling back from record territory. In contrast, US stock futures rose, helped by a calmer tone from President Trump toward Fed Chair Jerome Powell, along with renewed optimism around trade deals and AI-fueled earnings optimism.
“To do that is a big move, and I just don’t think it’s necessary,” Trump said when asked if he planned to fire Powell.
He added: “I believe he’ll do the right thing. I’d love him to lower interest rates.”
More about: Trump tours Fed construction project, calls for lower rates
Markets took the shift in tone as a sign of stability ahead of next week’s Federal Reserve decision, especially after Trump’s public criticism of Powell during Thursday’s tour of the Fed’s $2.5 billion renovation project.
Meanwhile, the S&P 500 notched a fourth consecutive record high on Thursday, driven by gains in tech and AI stocks, particularly Google (GOOG) after strong earnings.
Global Snapshot
| Region / Asset | Measure / Index | Move | Notes |
|---|---|---|---|
| Global Equities | MSCI All Country World | ▼ 0.2% | Rally pauses after 6 straight days up |
| Hong Kong | Hang Seng Index | ▼ 1.1% | Led by tech/property losses |
| Japan | Topix | ▼ 0.8% | Pullback from record high |
| Dow Futures | YM=F | ▲ 0.15% | Trading near 44,966 |
| S&P 500 Futures | ES=F | ▲ 0.16% | Holding gains after record close |
| Nasdaq 100 Futures | NQ=F | ▲ 0.12% | Lifted by Big Tech earnings |
| Dollar Index (DXY) | USD Index | ▲ 0.2% | Gains on strong labor data, Powell tension easing |
| Bitcoin (BTC) | Spot | ~$115,500 | Down ~2.6% amid broad risk-off tone in crypto |
| Brent Crude | BZ=F | ▲ 0.73% | Rising on trade optimism despite Venezuela concerns |
| WTI Crude | CL=F | ▲ 0.44% | Trading around $66.32 |
| US 10-Year Yield | Treasury Yield | ~4.39% | Steady amid Fed wait-and-see |
Key Drivers
- Trump–Powell tensions cool: After weeks of harsh criticism, Trump said he doesn’t plan to fire Powell. While reiterating his call for lower rates, the softened rhetoric helped soothe market concerns over central bank independence.
- S&P 500 hits new high: The index closed at a fresh record for the fourth straight day, with optimism driven by Alphabet’s AI-led earnings and expectations of further rate stability.
- Intel beats but warns: Despite beating revenue estimates, Intel’s stock turned negative late Thursday after CEO Lip-Bu Tan confirmed layoffs and factory project cancellations, dampening initial enthusiasm.
- Oil climbs on trade optimism: Brent crude rose 0.73% to near $69.50 as investors priced in progress on US trade deals with Japan, the Philippines, and Indonesia, even as concerns lingered over increased Venezuelan supply.
ING analysts noted: “Trade talk optimism appears to be offsetting expectations for stronger Venezuelan supply.”
What’s Next
- Earnings: Key tech names including Apple, Meta, and Amazon are set to report next week, as Wall Street eyes the next leg of the AI rally.
- Fed Meeting: The FOMC will meet next week, with rate guidance in focus. Markets are currently pricing in fewer than two cuts this year.
- Trade Deadlines: The August 1 tariff deadline remains a wildcard. Hopes for broader deals are growing, but so are fears of baseline 15–30% tariffs if talks stall.
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