The U.S. budget deficit surged to $432.3 billion in July, marking the largest monthly shortfall since March 2021, primarily due to rising interest on federal debt.
Despite this alarming figure, traders are not anticipating any interest rate cuts from the Federal Reserve in the next five years, although expectations for a rate hike have softened following recent payroll reports and stable inflation data.
In a positive development for the American auto sector, Ford Motor announced plans to boost production of its Lincoln vehicles domestically starting in 2030, phasing out imports from China, which aims to reinforce its position as the leading U.S. auto producer.
Meanwhile, the tech sector is witnessing an intensified AI competition between the U.S. and China, highlighted by Meta and Nvidia releasing open-weight AI models to foster innovation.
Additionally, geopolitical tensions in the Middle East, particularly attacks on vessels in the Gulf of Oman and the Red Sea, have raised concerns about energy supply disruptions, although markets have shown resilience, with two of the three U.S. benchmark indexes rising.
The world's largest sovereign wealth fund in Norway reported a record profit of $184 billion, largely driven by a rally in Asian tech stocks, with a significant portion of its portfolio invested in U.S. equities, including major companies like Nvidia, Apple, and Microsoft