By Alex Financials

🏛️ U.S. Markets Weaken Ahead of Fed, Big Tech Earnings

The S&P 500 ($SPX) and Nasdaq Composite slipped from record highs in mid‑morning trading, dragged down by weaker earnings reports from some major firms as investors position for the Federal Reserve’s policy meeting later today. Futures for both indexes remain modestly positive, but market direction hinges on signals from the Fed about future rate cuts .

🇺🇸🇨🇳 Trade Talks: Can a Truce Stick?

U.S. and Chinese negotiators are wrapping up talks in Stockholm aimed at extending their current tariff truce. No final deal yet – U.S. President Trump is expected to make the call before Friday’s tariff deadline. The IMF has issued fresh warnings that persistent U.S. tariffs are suppressing global growth and fueling inflation – key headwinds for market sentiment .

💡 Nvidia Leads Chip Rally on China Demand

Nvidia ($NVDA) stock gained 1.2%, closing at $178.84, as investors cheered a revived opportunity in China after the U.S. eased export restrictions on its H20 AI chip. The company has ordered 300,000 of those chips from TSMC amid surging demand, bolstering its AI chip dominance. Broader gains were also seen among AMD ($AMD) and Broadcom ($AVGO) stocks.

📉 UPS & UnitedHealth: Mixed Signals in Earnings

UnitedHealth Group ($UNH) shares dipped roughly 1.5% pre‑market after the company trimmed its full‑year profit guidance, citing increased health‑care utilization. Meanwhile, UPS ($UPS) fell 4% pre‑open following disappointing quarterly results and warning that economic uncertainty would limit forward guidance .

🚂 Megadeal Watch: Union Pacific’s Acquisition

Union Pacific announced an $85 billion acquisition of Norfolk Southern, creating the country’s first transcontinental railroad covering 50,000 miles across 43 states. The industry‑shaking deal could restructure U.S. freight logistics and prompt close regulatory scrutiny.

🌍 Global Markets: Europe & India Show Resilience

On the FTSE 100, strong earnings from AstraZeneca (AZN) and Barclays pushed the index higher; Barclays stock hit a 52‑week high amid robust investor demand. In India, the Nifty50 surpassed the 24,800 mark and the Sensex rallied over 440 points, led by gains in Reliance Industries and HDFC Bank.

⚠️ Risk Signals Flashing in S&P

Analysts warn that the S&P 500 may be overextended, with stretched leverage, record household equity exposure, and extreme valuation levels raising red flags for potential downside risk if market momentum cools.

📌 Market Summary

🧭 What to Watch Next

• Fed rate announcement later today – dovish tone could boost markets.

• Tech earnings – results from Amazon, Microsoft, Meta and others may drive sentiment.

• Trade truce details – any extension or reversal of tariffs could swing market view.