U.S. equity markets diverged sharply as the Dow plunged over 400 points while Nvidia’s relentless surge catapulted the Nasdaq to unprecedented heights. Among Tuesday’s most actively traded stocks, Nvidia shattered records after export restrictions on its H20 chips eased. Chinese ADRs largely rallied, with Alibaba surging 8.09% and TSMC gaining 3.62%. Oil prices softened marginally as delayed Russian sanctions alleviated supply anxieties, with Brent crude dipping alongside a 0.85% slide in COMEX gold futures. European bourses closed uniformly lower amid persistent economic headwinds.
Monetary policy divergences emerged globally: Richmond Fed President Barkin noted policymakers don’t always align with the Chair, while ECB’s Nagel advocated caution ahead of September’s potential rate reassessment. Boston Fed’s Collins highlighted economic resilience allows deliberate policy evaluation. Trade tensions simmered as Canada’s Carney signaled unresolved U.S. tariffs would spur intensified negotiations. Commerce Secretary Lutnick confirmed Indonesia’s agreement to eliminate U.S. goods tariffs, while clarifying America’s steel tariff strategy exempts raw materials but targets finished products. BOE’s Mann warned elevated savings reflect unemployment fears, and France’s Prime Minister sounded alarms over soaring debt pushing finances toward a precipice.
Corporate developments reverberated across sectors: Trump revealed Indonesia’s commitment to purchase 50 Boeing jets. Wall Street giants celebrated outsized profits fueled by market volatility. Meta confronts fresh EU antitrust scrutiny following previous €200 million penalties. Tesla’s North America sales chief departed abruptly amid production challenges. Google will unveil a $25 billion AI infrastructure investment at Pennsylvania’s energy summit. Renault appointed Duncan Minto interim CEO, while BAE Systems expressed confidence in securing new Typhoon fighter jet orders. Broadcom escalated its AI battle with Nvidia by launching the Tomahawk Ultra network chip. BlackRock’s assets under management soared to record levels despite market turbulence, and Citigroup shares climbed on robust quarterly earnings that trounced trading revenue forecasts.
Market commentary dissected unfolding dramas: Treasury yields rose post-CPI as rate-cut expectations dimmed. Fed officials urged stronger financial inclusion measures. Besant suggested Powell should exit the Fed entirely in 2025 rather than remain as governor. Investors actively hedged against Fed chair removal risks, while Powell faced mounting pressure over Fed headquarters renovation costs—a lever the White House might exploit. JPMorgan’s Dimon declared private credit markets peaked and cautioned against political interference, warning: "Don’t play games with the Fed" as scrutiny intensifies around the central bank’s independence.