US Stock Market Outlook: Fed Minutes Release, Trade Signals, Bitcoin Surges, SharpLink Gaming Rises.
U.S. Stock Futures Rise Ahead of Fed Minutes
On Tuesday morning, U.S. stock futures saw a collective rise as investors await the Federal Reserve's June meeting minutes, set to be released at 2:00 AM tonight. These minutes may reveal the internal "hawk-dove" debate within the Fed and whether a rate cut path is quietly forming. Key signals for the second half of the year are about to be unveiled.
Trump’s Tariff Announcement
Former President Trump announced on Tuesday that he would impose a 50% tariff on copper imports, which is approximately double the market expectation of around 25%. This escalation in trade rhetoric adds uncertainty to the already tense global market as investors seek clearer signals.
Cryptocurrency and Tech Stocks Performance
Bitcoin has rebounded to $109,000 pre-market. Most star tech stocks are slightly up, including $Tesla (TSLA)$, $AMD$, and $NVIDIA (NVDA)$.
In the cryptocurrency sector, stocks like $SharpLink Gaming (SBET)$ surged over 11%, while $Bitmine Immersion Technologies (BMNR)$, $Circle (CRCL)$, and $Robinhood (HOOD)$ saw minor increases.
Mixed Performance of Chinese Stocks
Chinese stocks showed mixed results pre-market. $Taiwan Semiconductor (TSM)$ rose over 1%, while $Alibaba (BABA)$ fell more than 2%. Other notable declines included $Pinduoduo (PDD)$, $JD.com (JD)$, and $Baidu (BIDU)$, each down about 1%.
$SharpLink Gaming (SBET)$ saw a pre-market increase as the company’s Ethereum holdings surpassed 200,000, valued at over $527 million. $AES Corporation (AES)$ rose about 14% following reports of a buyout offer.
Global Trade Tensions
The U.S. announced a 25% to 40% tariff on imports from Japan, South Korea, and 14 other countries starting August 1, leading to widespread discontent. Leaders from Japan, South Africa, and Brazil criticized the U.S. actions as unreasonable and irresponsible.
Fed Chair Race Heats Up
Reports indicate that Kevin Hassett and Kevin Warsh are in fierce competition for the Fed Chair position, while Treasury Secretary Janet Yellen is rumored to be eyeing both the Treasury and Fed Chair roles.
Goldman Sachs Adjusts Rate Cut Predictions
Goldman Sachs economists suggest that the Fed may lower interest rates as early as September, three months earlier than previously predicted, citing softening employment data as a key factor.
Price Increases Expected in Retail
Barclays forecasts that retail prices will begin to rise significantly from July due to tariffs, with core CPI expected to reach 3.6% as the effects of tariffs become apparent.
Upcoming AI Developments from Tesla
Elon Musk is set to livestream the release of Grok 4, an AI model from his startup xAI, on July 10 at 11:00 AM Beijing time. This model is expected to outperform current AI models from OpenAI and Google in language, math, and reasoning.
Key Upcoming Economic Data
- 22:00: U.S. May wholesale sales month-on-month
- 22:30: EIA crude oil inventory for the week ending July 4
- 01:00: U.S. 10-year Treasury auction results
- 02:00: Release of the Fed's monetary policy meeting minutes
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