Spot gold prices fell to around $3,375 per ounce after a 1.3% loss in the previous session.
This was driven by decreased demand for safe-haven assets following progress
in trade talks between the U.S. and its key partners, especially the European Union and Japan. This came after reports indicated Brussels might accept 15% tariffs on most U.S. exports,
while Tokyo signed an investment agreement worth $550 billion.
This led to a rise in U.S. Treasury yields, which weakened gold’s appeal.
Despite a further 0.3% drop on Wednesday morning to $3,378.76 per ounce,
Market sentiment remained cautious due to persistent threats from U.S. President Donald Trump
to impose new tariffs on countries like South Korea and India,
with measures expected to take effect on August 1.
On the other hand, gold has gained more than 25% since the start of the year,
fueled by geopolitical uncertainty and international conflicts,
Although it has fluctuated in recent months after reaching a record high above $3,500 per ounce in April.
Oil
Holds Steady Awaiting Trade Talks and Inventory Data
Following four consecutive sessions of losses,
oil prices stabilized as investors awaited any developments in U.S. trade negotiations. Brent crude traded below $69 per barrel, while West Texas Intermediate (WTI) remained above $65,
with markets closely monitoring U.S. inventory levels.
Data showed that U.S. crude stockpiles dropped by 3.2 million barrels last week nationwide,
even as inventories at Cushing, the delivery point for WTI, rose for the third straight week.
Diesel inventories, despite a recent uptick, remained at their lowest seasonal level since 1996.
Analysts warned that any market optimism may be short-lived.
Vishnu Varathan, head of macroeconomics at Mizuho Bank,
noted that a slight rebound in oil prices is possible given diminished pessimism around demand.
Still, ongoing tensions and tariff risks could renew pressure on prices.
Meanwhile, investors are also watching the impact of new sanctions on Russia, particularly for importers like India,
and whether Chinese imports of Russian and Iranian oil will feature in next week’s U.S. trade negotiations.
Gold and Oil Prices Decline Amid Global Trade Moves
PMI Data Reveals Economic Slowdown in the UK During July Preliminary data released Thursday morning by IHS Markit, a unit of S&P Global, revealed a slowdown in the UK economy in July,
with Purchasing Managers’ Index (PMI) readings falling in both the manufacturing and services sectors.
The Manufacturing PMI rose to 48.2, exceeding expectations of 47.9 but still below the 50-point threshold separating expansion from contraction.
It was also slightly below the June reading of 47.7, indicating that the sector remains in contraction—albeit at a slower pace.
Meanwhile, the Services PMI fell sharply to 51.2, missing market expectations of 52.8, the same as in June.
This points to a noticeable slowdown in service sector activity during the month.
Deutsche Bank
Deutsche Bank Reports Strong Q2 Earnings Despite Investment Challenges and Euro Strength It Germany’s largest lender, reported earnings that beat expectations for Q2 2025,
supported by revenue growth and improved operational performance,
despite ongoing challenges in investment banking and the impact of a stronger euro.
The bank posted a net profit of €1.485 billion ($1.75 billion), compared to a loss of €143 million in the same period last year,
which had resulted from large legal provisions related to a lawsuit from investors.
CEO Christian Sewing expressed satisfaction with the results, stating in an official release that the bank is on track to achieve its full-year targets.
Q2 2025 Highlights:
Revenue: €7.804 billion, up from €7.59 billion in Q2 2024 and slightly above analyst expectations of €7.76 billion—a 3% year-over-year increase.
Net Profit: €1.485 billion, surpassing estimates of €1.2 billion.
Europe
European Car Sales See Sharpest Drop Since August Amid Weak Demand European car sales posted their steepest decline since last August during the month of June,
reflecting ongoing consumer caution and weakening demand in major markets.
According to data from the European Automobile Manufacturers Association, new vehicle registrations dropped 5.1% year-over-year,
totaling 1.24 million units, despite continued growth in battery-electric vehicle sales.
The decline was led by a sharp 14% drop in registrations in Germany, followed by a 17% fall in Italy, and a 6.7% decrease in France.
At the corporate level, Volkswagen Group saw a 6.1% decline in registrations, Stellantis dropped 12.3%, and Renault slipped 0.6%, while BMW stood out with an 8.2% increase.
European Economic Slowdown Offset by Strong Bank Earnings
Tesla Sales Plunge to 10-Year Low, Earnings Disappoint: Tesla has experienced one of its worst quarters in recent years,
falling short of Wall Street expectations amid rising competition and growing criticism of CEO Elon Musk.
These factors have negatively impacted the company’s performance.
In a statement on Wednesday, Tesla announced that adjusted earnings came in at 40 cents per share,
slightly below analysts’ average estimates.
Revenue dropped 12% to $22.5 billion, marking the company’s most significant decline in at least a decade.
Despite these results, the report did not include any new negative surprises. Tesla reaffirmed its commitment to moving forward with plans for self-driving robotaxis and lower-cost vehicles,
which helped reassure some investors.
The company explained that its approach continues despite ongoing global economic uncertainty,
Driven by tariff changes and unclear impacts from fiscal policy adjustments and political shifts.
Causes of the Decline and Stock Performance
Tesla attributed the revenue drop to a decline in vehicle deliveries, decreased income from regulatory credits,
and a lower average selling price.
Revenue from energy generation and storage also fell,
though growth was seen in the services and infrastructure segment, which includes the company’s Supercharger network.
By 4:48 p.m., the stock had slipped in after-hours trading in New York, erasing earlier gains.
Although Tesla shares had lost approximately 18% year-to-date as of Wednesday’s close,
they had partially rebounded from the lows recorded in March and April.
Betting on Artificial Intelligence and Robotics
Despite financial volatility, many investors remain focused on Musk’s vision of a future built on artificial intelligence,
humanoid robotics and autonomous driving technologies.
Adam Crisafulli, founder of market research firm Vital Knowledge, wrote in a research note:
“If someone sees Tesla purely as a car company, the results are weak.
But if they view it as a tech giant in AI and robotics,
the outlook remains strong—even after the second-quarter results.”
However, Tesla has become increasingly controversial due to Musk’s public support for former President Donald Trump.
His role in aiding the administration’s cost-cutting efforts has drawn criticism from more left-leaning consumers.
At the same time, some investors are concerned that these political involvements could distract the company from its core mission.
Sharp Decline in Regulatory Credit Revenue
Tesla reported that revenue from regulatory credits, which had been a significant source of income in recent years,
fell by more than 26% to $439 million in the second quarter,
down from $595 million in Q1 and $890 million in the same period last year.
This revenue stream is expected to decline further under the Trump administration’s policy
of eliminating penalties on automakers that fail to meet federal fuel efficiency standards.
Stable Profit Margins but Uncertain Road Ahead
Although Tesla reported a gross profit margin that exceeded expectations,
investors still await more precise details about its plans to scale up robotaxi services.
The company has not provided specific launch timelines or target cities, particularly for Austin and other expansion markets.
Tesla Sales Plunge to 10-Year Low, Earnings Disappoint.
Global Markets Rally on Growing Trade Optimism: Global financial markets are enjoying a powerful upswing fueled by renewed optimism
over international trade agreements and reduced investor uncertainty.
As negotiations advance between the United States and major trading partners,
Wall Street and Asian indices are hitting record highs, while asset classes ranging from bonds to currencies are responding positively.
U.S. equities continued their impressive rally, with the S&P 500 climbing to an all-time high.
The momentum comes from a finalized trade deal with Japan,
alongside progress toward an agreement with the European Union that could introduce a 15% tariff on most goods.
Asian markets mirrored the upbeat sentiment.
The MSCI Asia-Pacific Index posted its sixth consecutive day of gains, rising 1%,
while Japan’s Nikkei 225 soared by 2%.
These movements reflect growing investor confidence in the global trade outlook.
Assets Respond to Policy Signals
The bond market reflected a shift in sentiment as well. U.S. Treasury yields rose for a second straight session.
With the 10-year yield hitting 4.39%.
While a $13 billion auction of 20-year Treasury bonds saw solid demand,
The broader bond market remained under pressure.
A 40-year bond auction in Japan drew its weakest demand since 2011
another signal of changing investor appetite amid evolving interest rate expectations.
Gold fell slightly by 0.1%, while the Japanese yen outperformed other G10 currencies,
supported by speculation of future rate hikes.
Meanwhile, the U.S. dollar weakened after Commerce Secretary Howard Lutnick made
headlines by suggesting that Federal Reserve Chair Jerome Powell “should go”.
The White House later confirmed President Donald Trump will meet with Federal Reserve officials on Thursday.
Adding further intrigue to the monetary policy narrative.
Investor Sentiment Boosted by Trade Clarity
Recent developments in trade policy have significantly boosted investor confidence.
Reports of a forthcoming agreement between the U.S. and the EU and signs of progress
in talks with China have eased fears of a prolonged tariff war.
Nick Twidale, Chief Market Analyst at AT Global Markets, noted:
“The Japan deal and a likely EU agreement are helping reduce concerns
over trade tensions and paving the way for more stability.”
This optimism was reflected in the VIX volatility index, often called the market’s “fear gauge.”
which fell to 15 points—starkly from its spike above 52 during April’s peak tariff uncertainty.
President Trump reaffirmed his commitment to maintaining a 15% minimum tariff under a “reciprocal tariffs” approach.
He also indicated that the agreement with the EU could be finalized before August 1.
Fed Faces Pressure Amid Rate Cut Bets
Expectations are growing that the Federal Reserve may adopt a more aggressive approach to interest rate cuts in 2026.
Markets are now pricing 75 basis points in rate reductions, up from just 25 basis points expected in April.
President Trump didn’t mince words, stating:
“The Fed must act—but they lack the courage.”
At the same time, Treasury Secretary Scott Besant emphasized there is no rush to replace Chair Powell.
He also confirmed that trade agreement performance will be evaluated quarterly.
And 25% tariffs on Japanese goods may be restored if agreed-upon targets aren’t met.
Tech Earnings Send Mixed Signals
Corporate earnings presented a mixed picture. Alphabet, the parent company of Google,
posted stronger-than-expected revenues, though it also reported a notable increase in capital spending.
Conversely, Tesla shares fell 4.4% after CEO Elon Musk warned of “a few tough quarters ahead.”
following the company’s most significant sales drop in a decade.
In a surprising disclosure, President Trump admitted he had considered breaking up Nvidia to stimulate competition in the booming AI chip sector—only to realize:
“It’s not that simple in this industry.”
Following the news, Nvidia shares rose nearly 1% in after-hours trading.
Analysts Warn of Overconfidence Risks
Despite substantial gains, not all market watchers are celebrating.
Analysts at JPMorgan, led by Khuram Chaudhry, warned that signs of complacency are emerging.
They noted a disconnect between soaring equity prices and declining earnings forecasts.
“Unless analysts begin to revise estimates upward again,” the team cautioned.
“Markets could face a period of heightened volatility and downside correction.”
Surveys Show Confidence in Stocks and Tech Leadership
According to a recent Markets Pulse survey, nearly two-thirds of investors believe stocks
will outperform bonds in the second quarter when adjusted for volatility.
The technology sector, in particular, is expected to lead market performance.
Louis Navellier, Chief Investment Officer at Navellier & Associates, commented:
“Despite elevated valuations, the current environment of low interest rates
and positive trade momentum continues to present strong opportunities.”
Conclusion: Uptrend With a Caution Flag
While current indicators suggest that global markets are promising, analysts agree that caution remains warranted.
Momentum is strong, but the potential for a sudden shift in sentiment means that investors
would be wise to stay alert and diversified in the weeks ahead.
The global markets rally on growing trade optimism has shown remarkable strength.
However, sustained gains will depend on policy clarity, corporate earnings stability,
and continued diplomatic progress.
What Is Trading in Different Types of Securities?Securities trading is at the heart of modern financial markets,
where investment assets such as stocks, bonds, sukuk, and others are exchanged.
But what exactly are securities, what types do they include, and how are they traded?
Securities are tradable financial instruments that represent either ownership rights (such as stocks), debt obligations (such as bonds), or other financial tools like sukuk and derivatives.
Companies or governments issue them to raise funds.
Types of Securities
Stocks
Stocks represent an ownership share in a joint-stock company.
Shareholders receive a portion of the profits as dividends and may benefit from stock price appreciation.
Common stocks: Grant voting rights in shareholder meetings.
Preferred stocks: Offer priority in dividend payments but usually without voting rights.
Bonds
Companies or governments issue bonds as debt instruments.
The investor lends a sum of money in exchange for periodic interest and repayment at maturity.
Government bonds: Issued by the state, generally low-risk.
Corporate bonds: Issued by companies, may carry higher risk but offer greater returns.
Sukuk
Sukuks are similar to bonds in purpose (fundraising),
but they comply with Islamic Sharia law and are based on profit-sharing instead of interest.
Derivatives
These contracts derive value from an underlying asset, such as futures, options, and CFDs.
Traders often use them for hedging or speculation.
How Are Securities Traded
Investors trade securities on organized exchanges like the Saudi Stock Exchange (Tadawul) or the New York Stock Exchange
Others trade specific securities over the counter (OTC).
Buying and selling are conducted through licensed brokers.
Trading can be manual or electronic via trading platforms.
Trading mechanisms vary by security type and market regulations.
Why Do People Invest in Securities
Diversifying income sources through dividends or interest.
Capital growth over time through asset appreciation.
Hedging against risks or protecting wealth from inflation.
Access to global markets and a wide range of opportunities.
Conclusion
Securities trading is a fundamental pillar in wealth building and economic development.
Investors make informed and effective decisions by understanding the different types of securities and how to trade them.
Whether you’re a beginner or an experienced investor,
Knowledge of these instruments is key to succeeding in the world of finance.
US Stocks Continue to Hit Record Highs Despite Tech Pressures and Nasdaq Decline
Despite pressure from the technology sector, U.S. stocks continue to reach new record levels,
reflecting investor optimism about corporate earnings and the strength of other sectors.
The S&P 500 index rose slightly at the close of Tuesday’s session
by 0.06% to finish at a new record high of 6,309.62 points.
It’s the highest closing level since the beginning of 2025, and the eleventh record has closed this year.
Investors continued to assess significant corporate earnings along with global trade developments.
The Dow Jones Industrial Average climbed by about 179.37 points, or 0.40%, to close at 44,502.44 points.
Meanwhile, the Nasdaq Composite fell by 0.39%, or 81 points,
to close at 20,892 points after achieving a record close in the previous session.
The decline in the Nasdaq was driven by a drop in tech stocks, notably Nvidia,
which fell by 2.55%, Broadcom by 3.34%, and TSMC by 1.78%.
This followed reports that the $500 billion “Stargate” project — a joint venture between SoftBank and OpenAI
is facing challenges that led both firms to abandon short-term plans.
Markets
Markets were also affected by weaker-than-expected earnings from some major companies.
Lockheed Martin’s stock dropped by about 11% after its second-quarter revenue missed analyst expectations,
while Philip Morris shares lost nearly 8% for the same reason.
In contrast, healthcare sector stocks outperformed, driven by strong results.
IQVIA’s stock surged by about 18% after posting better-than-expected earnings, while shares of Amgen and Merck also rose.
Small-cap stocks continued to perform well, with the Russell 2000 index up by 0.8%. According to FactSet data, 88 companies from the S&P 500 have reported their earnings so far,
and over 82% have exceeded analyst expectations.
Investors are now awaiting results from major tech firms in the coming days,
amid optimism that the positive earnings momentum could continue.
US Stocks Continue to Hit Record Highs Despite Tech Pressures
Amazon Acquires Bee AI to Boost Smart AI Device Portfolio:
On Tuesday evening, Amazon announced its plans to acquire Bee AI.
This startup specializes in developing wearable devices powered by artificial intelligence.
This move reinforces Amazon’s focus on advanced personal technology.
Tokyo-Washington Trade Deal Pushes Nikkei to Highest Level in a Year
Japanese stocks rose significantly during Wednesday trading, driven by substantial gains.
Tokyo and Washington announced a long-awaited trade agreement in the auto manufacturing sector, ending months of stalemate.
The Nikkei index jumped 3.3%, closing at 41,070.91 points—its highest level since July last year
despite markets shrugging off reports that Japanese Prime Minister Shigeru Ishiba plans to step down by the end of August.
The trade deal between the United States and Japan helped ease tensions. U.S. President Donald Trump
announced that both sides agreed to reduce tariffs on Japanese auto exports from 25% to 15%.
This is a significant breakthrough for a sector that accounts for more than a quarter of Japan’s exports to the U.S.
Richmond Manufacturing Index Shows Sharp Contraction in July, Matching Expectations
Data released Tuesday by the Federal Reserve Bank of Richmond showed a sharp decline.
Manufacturing activity in the state will be in July.
The Manufacturing Index registered -20 points, aligning with market expectations.
This figure is significantly worse than June’s reading, which saw a slight contraction at -2 points.
Reflecting further deterioration in the region’s industrial sector.
The index is important because it provides a comprehensive view of regional manufacturing conditions t
Through a monthly survey of about 100 manufacturers, covering aspects like shipment volumes, new orders, and employment.
Amazon Acquires “Bee AI” Startup to Enhance Its Position in the Smart AI Device Market
On Tuesday evening, Amazon announced its plans to acquire the startup “Bee AI.”
A company specializing in developing wearable devices powered by artificial intelligence.
The move reinforces Amazon’s strategic focus on advanced personal tech.
Maria de Lourdes Zolo, CEO of Bee, confirmed the acquisition in a LinkedIn post, stating:
“From the beginning, we imagined a world where AI could be a true personal assistant—understanding your life,
improving it, and learning with you… And now that vision has found its new home.”
Bee, based in San Francisco, manufactures a smart wristband priced at $49.99.
The device shares features with Fitbit watches and includes microphones and AI technologies
that enable it to analyze conversations and provide users with summaries, to-do lists, and daily reminders.
Amazon Acquires Bee AI to Boost Smart AI Device Portfolio
RBA Holds Interest Rates Steady with Easing Hints On Tuesday morning, the Reserve Bank of Australia (RBA) released the minutes of its July meeting,
the board’s decision to keep the cash rate unchanged at 3.85%, defying market expectations of a 25 basis point cut.
The minutes indicated the decision was made amid ongoing close evaluation of global and domestic economic conditions. >The RBA described its current monetary policy stance as “moderately restrictive.”
citing slowing household credit growth and limited signs of consumption recovery.
Regarding the economic outlook, data showed that core inflation remains within the RBA’s target range of 2%–3%,
though near the upper limit. A temporary rise is expected in late 2025 as government energy subsidies phase out.
Despite mixed signals regarding supply and demand balance,
the labor market remains resilient.
Globally, the RBA noted that U.S.-China trade tensions remain within expected bounds, while geopolitical risks persist.
The U.S. economy continues to show strong growth, though a slowdown is anticipated in the year’s second half.
As for global monetary policy, most advanced economies show limited inclination to cut rates in 2025,
with broader easing expected in 2026.
Meanwhile, the Bank of Japan continues its gradual rate hikes.
At the end of the meeting, board members discussed two options:
maintaining the current rate or cutting it by 25 basis points.
They agreed that further monetary easing might be necessary later,
depending on evolving data—particularly inflation and labor market conditions.
Trump
Trump’s Spending and Tax Bill Adds $3.4 Trillion to Deficit On Monday, the U.S. Congressional Budget Office (CBO) reported that the spending
The tax bill signed by President Donald Trump earlier in July is projected to add $3.4 trillion to the federal deficit over the next decade.
The detailed report also stated that the new law would increase the number of uninsured individuals by 10 million by 2034.
The legislation includes significant changes to social welfare and tax programs.
The Senate passed the bill by a single vote (51 to 50),
following last-minute amendments by Republicans to secure majority support. The House of Representatives later approved the bill by a margin of 218 to 214,
and President Trump officially signed it into law on July 4.
The legislative package includes an extension of Trump’s 2017 tax cuts,
large allocations for defense spending, and funding for a mass deportation program targeting undocumented immigrants,
in line with Trump’s hardline immigration agenda.
According to the CBO report, part of the cost is offset by cuts to programs like Medicaid and SNAP (food assistance),
along with reduced funding for clean energy initiatives.
However, the report concluded that the estimated $1.1 trillion in spending cuts does not compensate
for the projected $4.5 trillion drop in revenue,
exacerbating the deficit compared to previous projections without the law.
Declines Amid Trade Fears and New Sanctions Oil prices extended their losses for a third consecutive session amid escalating trade tensions between the United States and its partners,
as the deadline for new U.S. tariffs approaches in early August. Brent crude dropped below $69 per barrel, while West Texas Intermediate (WTI) held steady around $67.
U.S. and EU negotiators are ramping up efforts to avoid further trade escalation,
while analysts note that downside risks are growing due to expectations of higher supply later this year.
Meanwhile, the European Union imposed a new package of sanctions on Russia,
including a lower price cap on Russian crude, restrictions on refined fuels processed in certain refineries,
and broader bans on major Indian refineries relying on Russian oil.
In contrast, Washington hinted at possible tariffs targeting countries that import oil from Moscow, particularly China and India,
which adds additional pressure on global demand and weighs further on prices—especially as OPEC+ increases production.
Gold
Steady Despite Dollar and Rate Volatility Gold prices remained near their highest level in a month, with the precious metal trading around $3,395 per ounce.
This stability came as the dollar weakened and investors sought safe-haven assets amid growing concerns
over potential unilateral tariffs from President Trump ahead of the August 1 deadline.
This environment coincided with mixed signals from Federal Reserve officials,
which added uncertainty regarding the path of interest rates.
While some policymakers advocated for rate cuts to support growth,
Others were more cautious—keeping market expectations anchored around a modest 46 basis point cut through the rest of the year.
Although gold has traded within a narrow range in recent months, it has gained more than 25% since the beginning of 2025,
fueled by geopolitical risks in Ukraine and the Middle East, and concerns over global trade system disruptions.
Oil and Gold Prices Under Pressure from Talks and Tariffs
Global Markets Caught Between Tech Earnings and Tariff Fears: Global markets began the week with cautious volatility,
As investors focused on the earnings season of major corporations
especially tech giants—amid persistent trade and geopolitical tensions,
and the looming threat of additional tariffs by former U.S. President Donald Trump.
On Wall Street, the week opened with stocks giving up most of their early gains.
Despite the S&P 500 closing above 6300 points for the first time, its gains were limited to 0.1%.
Energy stocks declined alongside falling oil prices, due to concerns over weakening demand.
In contrast, the “Magnificent Seven” (Apple, Nvidia, Amazon, Meta, Microsoft, Alphabet, Tesla) continued to perform strongly.
Investors are eyeing earnings reports from Tesla and Alphabet (Google’s parent company) this week,
amid growing focus on AI investment. However, Nvidia shares notably declined.
Optimism in Asia Despite Political Uncertainty
Asian markets saw notable fluctuations. Japan’s Nikkei 225 rose by 1.1% before paring gains,
while the MSCI Asia Index held steady after earlier rising 0.4%.
The yen pulled back slightly after a 1% gain on Monday, then rebounded following Prime Minister Shigeru Ishiba’s announcement
to remain in office despite the ruling coalition’s loss in the upper house elections.
Hideyuki Ishiguro from Nomura said the end of the elections eased fears of excessive market selloffs due to fiscal concerns,
Although political uncertainty remains.
Meanwhile, Philippine President Ferdinand Marcos Jr. will meet with Trump
at the Oval Office to discuss a potential trade deal before the U.S. tariff deadline.
Bonds and Dollar Diverge
Long-dated U.S. Treasury bonds led bond market gains, with 30-year yields falling to 4.95%,
while 10-year yields declined for a fifth consecutive session to 4.37%.
In contrast, Japanese government bonds edged lower, increasing yields by 1.5 basis points.
The U.S. dollar fell against major currencies, while the index remained flat.
Analysts at Goldman Sachs, led by David Kostin,
noted that the weaker dollar could partially support S&P 500 earnings and offset some tariff-related pressures.
Tariff Tensions Return
White House spokesperson Karoline Leavitt reignited trade concerns,
stating that Trump might issue more unilateral tariff announcements before August 1,
Potential new trade deals are also on the table.
Matt Maley from Miller Tabak suggested that markets may not have fully
priced in Trump’s increasingly aggressive tariff stance.
Tech Earnings Season: A Momentum Test
Q2 earnings season kicked off strongly, bolstered by resilient consumer spending. Though
High valuations remain a concern.
The S&P 500 is now trading at around 22x forward earnings.
Ulrike Hoffmann-Burchardi from UBS Global Wealth Management noted:
“While the market may need to cool off, the bull run remains intact.
We maintain our 6500-point target for June 2026 and recommend using volatility to gradually enter markets.”
Christopher Harvey of Wells Fargo Securities forecasted double-digit gains for the index in H2, saying:
“Winners keep winning. Big Tech has large profit margins and long-term AI momentum.”
Morgan Stanley strategists, led by Michael Wilson, encouraged investors to stay optimistic,
citing earnings momentum, operating leverage, and cash tax savings as underappreciated tailwinds.
Richard Saperstein from Treasury Partners added:
“Much of the S&P 500 comprises stable-growth, high-cash-flow tech giants.
High valuations alone aren’t a reliable market signal.”
Deutsche Bank strategists, led by Parag Thatte, agreed.
Seeing continued earnings growth as a reason to increase equity exposure.
An “Unusual Calm” in Market Volatility
Since late June, the S&P 500 hasn’t moved more than 1% in either direction during any trading day.
Mark Hackett from Nationwide commented:
“This calm is unusual and may reflect investor fatigue and institutional hesitation.
While a reversal is possible, current positioning suggests another rally is likely before any pullback.”
Global Markets Caught Between Tech Earnings and Tariff Fears
