US stocks rebounded, led by the Nasdaq Composite at a record high, followed by the S&P 500 and Russell 2000, while the S&P MidCap 400 gained 0.6%. Apple surged 13.3% after pledging an additional US$ 100bn for US manufacturing on top of US$ 500bn, a move expected to spare it from new semiconductor tariffs. A fresh round of tariffs took effect, with Trump doubling duties on Indian goods to 50% and talks with Switzerland failing, keeping a 39% levy. Odds of a September Fed rate cut climbed near 90% after dovish comments from officials, and Trump moved to appoint Stephen Miran to the Fed board. ISM services slipped to 50.1, prices rose, and jobless claims increased. Treasuries fell, while munis and corporate bonds gained on strong demand.
The STOXX Europe 600 rose 2.1% on strong earnings and hopes for progress in the Ukraine-Russia conflict. Italy’s FTSE MIB gained 4.2%, Germany’s DAX 3.2%, France’s CAC 40 2.6%, and the UK’s FTSE 100 0.3%. The Bank of England cut rates by 0.25 points to 4% after a rare second-round vote, citing labor market weakness, and forecast inflation to reach 4% in September. Eurozone retail sales rose 0.3% in June and 3.1% y/y, beating forecasts, while investor confidence improved in Q2. However, German industrial output fell 1.9% in June, its lowest since 2020, and orders dropped 1.0% for a second month, raising concerns that GDP shrank more than the earlier 0.1% estimate.
