President Trump initially proposed a toll for ships transiting the Strait of Hormuz but quickly retracted this idea, stating that Gulf states would instead invest in the U.S. This decision comes amid rising oil prices due to continued U.S. military actions against Iran.
Despite these geopolitical tensions, U.S. stock markets ended the day positively, buoyed by a lower-than-expected inflation rate of 3.5%, which particularly benefited technology stocks. Notably, IBM's shares plummeted 25% after disappointing preliminary second-quarter results, marking its worst day on record.
In Asia, markets mirrored Wall Street's gains, with U.S. futures also showing positive movement. Federal Reserve Chairman Kevin Warsh emphasized the need for a policy overhaul to combat inflation, describing it as a burden on Americans.
Additionally, Under Secretary of Commerce Jeffery Kessler indicated that Nvidia's shipments of its H200 AI chips to China may have resumed, which could enhance the company's sales outlook. Investors are also awaiting key economic data from China, including GDP and retail sales figures, which could further impact market sentiment