Expectations

• US Treasury Secretary Scott Bessent stated during a finance leaders' gathering in Asheville that current bond yields reflect "flat to down" inflation expectations. • Bessent highlighted that these same indicators signal a robust acceleration in the growth of the United States economy. • This assessment is significant as it suggests a positive economic outlook where growth increases without triggering a spike in inflation.

• European stocks rose following the release of U.S. Consumer Price Index (CPI) data that met targets, reducing market expectations for further Federal Reserve interest rate hikes. • Investors are now awaiting Spain's final July CPI figures and the Eurozone's industrial production report to assess regional disinflation and manufacturing trends. • These upcoming benchmarks will help the European Central Bank determine if current economic momentum aligns with its policy projections for the autumn season.

Shares soar as yearly revenue up 93%, even as opposition grows to company’s role in Trump immigration agendaIn a sea of companies reporting mixed financial results this quarter, Palantir stands out. Although Palantir was not immune to the AI jitters that caused industry-wide drops in share prices earlier this year, the AI and analytics company reported that its overall revenue grew 93% year over year to $1.94bn. That’s well over the $1.8bn Wall Street expected Palantir to bring in for the second quarter.The glowing financials sparked a 10% surge in share prices in the immediate aftermath. Despite growing opposition to Palantir’s work with various governments including the crucial role the company plays in the Trump administration’s immigration agenda, Palantir’s revenue from US government contracts grew 90% year over year to $809m. Continue reading...

• The Federal Open Market Committee (FOMC) will announce its interest rate decision on July 29 following a two-day meeting that began on July 28. • The committee is evaluating critical economic indicators, including labor market conditions, economic growth, and inflation trends, to determine the policy outcome. • Investors are specifically focusing on the subsequent press conference by Fed Chair Kevin Warsh for signals regarding future rate adjustments.

• Singapore's economy grew by 5.7% in the second quarter, surpassing the 5.5% growth forecast by analysts. • While the expansion beat expectations, it represents a slowdown compared to the revised 6.3% growth recorded in the first quarter. • This advance GDP data provides a critical economic indicator as the nation's central bank prepares for its quarterly monetary policy decision later this month.

• The United States is scheduled to release its June Consumer Price Index (CPI) data this Tuesday, serving as a pivotal macroeconomic event for global markets. • The report follows a notable increase in inflation during May and comes amid volatility in oil prices and geopolitical tensions in the Middle East. • This data is critical because it will influence the Federal Reserve's upcoming policy assessments and potential expectations for interest rate cuts.

• Major technology stocks are experiencing a deepening selloff, though the S&P 500 remains up approximately 73% year-to-date. • The current market volatility is characterized as a "round-trip" of gains from the past month rather than a full-scale market crash. • Investors are questioning whether upcoming AI-related earnings reports can justify the sky-high valuations and expectations currently priced into the sector.