MARKET SNAPSHOT

Stocks were mixed on trade deals and the debate surrounding the Federal Reserve. Treasury yields fell for a third consecutive session amid emerging trade deals and debate on Fed independence. Gold futures rose as the dollar weakened on persistent trade and monetary uncertainty. Oil futures fell for a third consecutive session ahead of the U.S. tariff deadline and the next OPEC+ meeting.

MARKET WRAPS

EQUITIES

The U.S. reached trade pacts with the Philippines and Indonesia, while Treasury Secretary Scott Bessent said Federal Reserve Chair Jerome Powell should finish out his term if he so decides.

Blue-chip earnings continue to roll in, including results from Coca-Cola, General Motors and Lockheed Martin. GM's profit shrank, despite stronger sales, as automotive tariffs weighed on its bottom line. GM shares fell 8.1%.

Tariffs also clipped RTX's profit. Shares of the aerospace and defense company declined after it chopped its annual earnings guidance.

Major U.S. stock indexes ended the day mixed. The S&P 500 rose 0.1%, giving it another record high. The Nasdaq Composite Index retreated 0.4% from its Monday record, weighed down by chip makers such as Nvidia. The Dow industrials rose 0.4%.

Earlier Tuesday, markets in Asia were mixed.

Stocks in China rose for a fourth session. The benchmark Shanghai Composite Index gained 0.6%, while the Shenzhen Composite Index rose 0.6%, and the ChiNext Price Index increased by 0.6%.

Hong Kong's Hang Seng Index was up 0.5%, rising for a third session.

Japan's Nikkei Stock Average slipped 0.1%.

In Australia, the S&P/ASX 200 rose 0.1%.

Stocks in New Zealand slipped, as the S&P/NZX 50 fell 1%.

COMMODITIES

Oil futures fell for a third consecutive session with the market turning its focus to the deadline for U.S. tariffs to go into effect and the next OPEC+ meeting to decide on production levels for September.

"The August 1 tariff deadline looms large on the horizon as a possible demand destruction event," Mizuho's Robert Yawger said.

Meanwhile, OPEC+ needs to add 281,000 barrels a day in September to complete the unwinding of 2.2 million b/d, but "there is speculation the OPEC 8 will add even more barrels. There is zero speculation they will add less," he added.

August WTI went off the board at $66.21 a barrel, down 1.5%, and the September contract fell 1% to $65.31. Brent settled down 0.9% at $68.59.

Front month Comex gold for July delivery gained 1.1% to $3439.20 per troy ounce.

TODAY'S TOP HEADLINES

The Global Economy Is Powering Through a Historic Increase in Tariffs

The global economy is sailing through this year's historic increase in tariffs, displaying an unexpected trait: resilience.

Faced with extreme uncertainty, businesses and households have surprised economists with their ability to hedge, finding a short-term path through as they await clarity on where tariffs will end up.

Global producers brought forward purchases and rerouted goods destined for the U.S. through third-party countries that are subject to lower tariffs. For the most part, households and businesses have continued to spend and invest despite the uncertainty, analysts say.

Indonesia to Remove Numerous Trade Barriers, White House Says

The Trump administration on Tuesday announced details on its trade framework with Indonesia, although key specifics about how the U.S. will apply tariffs to goods from that nation remain unclear.

"Indonesia will supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy, " Trump said in a post on his Truth Social platform.

The details: The vast majority of U.S. exports to Indonesia will face zero tariffs, senior administration officials told reporters, with 99% of trade from the U.S. getting tariff-free treatment.

SAP Logs Higher Revenue, Operating Profit

SAP posted higher revenue and operating profit for the second quarter and backed its guidance for the year.

Reporting on a non-IFRS basis, the German business-software company said total revenue rose 9% to 9.03 billion euros ($10.9 billion) from the prior-year period. Sales from SAP's core cloud business rose 24% to EUR5.13 billion.

Net income climbed to EUR1.75 billion from EUR1.3 billion. Operating profit-a closely watched metric for software companies-rose to EUR2.57 billion from EUR1.94 billion.

GM Profit Shrinks After $1.1 Billion Tariff Hit

General Motors said Tuesday that new tariffs on imported cars and auto parts took a $1.1 billion bite out of its bottom line.

The company reported net income shrank 35% in the second quarter as President Trump's automotive tariffs weighed on the company. GM, the largest automaker in the U.S. by sales, had already lowered its earlier profit guidance for 2025. Now the company says greater impacts from tariffs are expected to hit the carmaker in the third quarter, though it is maintaining its profit guidance for the full year.

Shares of GM closed down more than 8% at $48.89. Investors seemed to be hoping the automaker would raise its profit guidance for the remainder of the year, Garrett Nelson, an analyst at CFRA, wrote in a note Tuesday.

AI Search Is Growing More Quickly Than Expected

Chatbots are becoming the go-to source for online answers for many consumers, chipping away at the dominance of traditional web search and adding another avenue of outreach that brands must cultivate to connect with customers.

An estimated 5.6% of U.S. search traffic on desktop browsers last month went to an AI-powered large language model like ChatGPT or Perplexity, according to Datos, a market intelligence firm that tracks web users' behavior.

That pales beside the 94.4% that still went to traditional search engines like Alphabet's Google or Microsoft's Bing, which have tried to fight off the new competition by adding artificial intelligence summaries to the top of their search results.

Musk Allies to Raise Up to $12 Billion for xAI Chips as Startup Burns Through Cash

Elon Musk is pulling every financial lever he can to keep pace in the artificial-intelligence arms race.

Just weeks after Musk's xAI raised $10 billion through sales of stock and debt, the startup is working with a trusted financier to secure up to $12 billion more for its ambitious expansion plans, people familiar with the situation said.

Valor Equity Partners, an investment firm whose founder, Antonio Gracias, has close ties to Musk, is in talks with lenders to raise the capital. The money would be used to buy a massive supply of advanced Nvidia chips that would be leased to xAI for a new jumbo-sized data center meant to help train and power the AI chatbot Grok.

Expected Major Events for Wednesday

01:00/AUS: May Westpac-Melbourne Institute Indexes of Economic Activity

05:00/JPN: Jun Steel Production

05:00/SIN: Jun CPI

06:00/JPN: Jun Revised Machine Tool Orders

08:00/TAI: Jun Industrial output

08:20/TAI: Jun Money Supply

21:00/SKA: Aug Business Survey Index

23:00/AUS: Jul Australia Flash PMI

23:00/SKA: 2Q Advance GDP

23:30/JPN: May Final Labour Survey - Earnings, Employment & Hours Worked

All times in GMT. Powered by Onclusive and Dow Jones.

Write to us at singaporeeditors@dowjones.com

We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

July 22, 2025 17:02 ET (21:02 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.