By Alex Financials

📈 1. U.S.–China Trade Talks Boost Sentiment

Wall Street is closely watching renewed U.S.–China trade negotiations in London. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick lead the U.S. delegation, meeting China’s Vice Premier He Lifeng to discuss easing restrictions on rare-earth minerals—crucial components in tech and auto industries.
That optimism is underpinning U.S. futures: Dow +0.1%, S&P 500 +0.2%, Nasdaq +0.1% pre-market.

🔍 2. Key Stock Movers

• $TSLA (Tesla) slipped ~2%, as Moody’s Baird downgraded it to “Neutral.” The drop follows CEO Elon Musk’s spat with President Trump and mixed sentiment on the upcoming Austin robotaxi launch.

• $AAPL (Apple) ticked up ~0.4% after kicking off WWDC. However, investors noted absent flagship AI announcements.

• $NVDA (Nvidia) gained ~0.9% after its CEO revealed new AI initiatives at London Tech Week.

• $QCOM (Qualcomm) rose ~3.5% following news it will acquire Alphawave in a $2.4 b deal.

• $WBD (Warner Bros. Discovery) jumped ~5% after announcing a split into two entities: one focused on streaming/studios, the other on linear networks like CNN and TNT Sports.

• $HOOD (Robinhood) and $APP (AppLovin) dropped ~5% and ~4.4%, respectively, after being excluded from the S&P 500.

🧠 3. Institutional Buyers Driving Bullishness

Institutional risk appetite, as measured by State Street’s risk index, is nearing record highs, fueling talk of a potential “melt‑up” in U.S. equities. The S&P 500 currently trades at ~22.7× forward earnings, raising valuation concerns.

🌾 4. Commodities & Global Trade Signals

• Agricultural markets rose on optimism in trade talks. Soybeans, corn, and wheat futures saw noticeable gains overnight.

• Gold prices are inching higher as investors seek inflation hedges amidst ongoing macro uncertainty .

🌍 5. Global Equity Snapshots

• India’s markets continued a 4-day rally. Nifty 50 broke 25,100, while Sensex added ~256 points, largely on RBI’s 50‑bps rate cut and robust global cues.

• UK markets showed mixed reactions: FTSE 100 edged down, but takeover headlines supported FTSE 250. London Stock Exchange Group shares fell ~1.5%.

🎯 6. What to Watch This Week

• U.S. inflation data: May’s CPI and Core PCE reports mid-week could significantly shift market sentiment.

• Trade talks updates: Any breakthroughs on rare-earth export easing or tariff rollbacks could fuel further upside.

• Earnings coming: Oracle, Adobe, and GameStop are set to report—expect volatility.

Summary

Markets are in a cautious uptrend, underpinned by trade-talk optimism and strong institutional flows. Technology, media, and semiconductor names are leading the charge, though elevated valuations keep a check on exuberance. Global central bank actions and macro data will likely shape the direction in the coming days.