US market gains opened the week as investors prepared for major economic and trade developments. Focus remains on the upcoming inflation report and the anticipated extension of the US-China tariff truce. Analysts expect Donald Trump to confirm the extension before the 90-day deadline expires.
The consumer price index release could influence future Federal Reserve policy. The Fed faces growing pressure from the president to lower interest rates. Recent jobs data and other reports have strengthened expectations for a rate cut in September. Investors are positioning themselves ahead of these developments.
US market gains also reflect geopolitical factors. Trump will meet Russian President Vladimir Putin in Alaska this week. Observers believe the meeting could result in progress on the Ukraine conflict and reduced sanctions on Moscow. This possibility is adding to downward pressure on oil prices, which are already falling due to higher OPEC output and slowing global growth.
Asian markets were mixed. Hong Kong, Shanghai, Sydney, Wellington, Taipei, Mumbai, and Jakarta saw gains, while Seoul, Singapore, and Manila fell. Tokyo was closed for a public holiday. In Europe, London, Paris, and Frankfurt started the day higher.
With the tariff truce deadline near, optimism remains strong. Analysts say another 90-day extension is very likely. Chris Weston from Pepperstone noted that unless talks break down, the extension news may have little immediate market impact. Traders appear to have already priced in the outcome.
Gold prices slipped after hitting record highs last week, following reports of a new tariff on the precious metal. Meanwhile, excitement around artificial intelligence remains high. Nvidia and Advanced Micro Devices (AMD) have agreed to give the US government 15 percent of revenue from AI chip sales to China.
Analysts view AI as a long-term driver of economic growth. Nvidia recently became the first company to reach a $4 trillion market valuation. This tech optimism helps sustain US market gains despite global uncertainties.
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