1. Japan’s Nikkei 225 hits record high as U.S.-China tariff truce extension lifts sentiment
Asia-Pacific markets mostly rose Tuesday, with Japan’s Nikkei 225 hitting a record high as investors assessed the U.S.-China trade truce extension overnight that has allowed the world’s largest economies more room to negotiate a deal. Japan’s blue-chip Nikkei 225 index hit an all-time high of 42,629.17 on Tuesday, led by energy, technology, financials and utilities sectors. In South Korea, the Kospi index added 0.66%, while the small-cap Kosdaq increased by 0.4%.
2.S&P 500, Nasdaq both make record close as inflation report gives Fed green light to cut rates
Both the S&P 500 and Nasdaq Composite closed at fresh record highs on Tuesday after a tamer-than-expected inflation report raised the possibility that the Federal Reserve could cut interest rates next month. The broad-based S&P ended the day up 1.13% at 6,445.76, while the tech-heavy Nasdaq finished up 1.39% at 21,681.90. The Dow Jones Industrial Average added 483.52 points, or 1.10%, to close at 44,458.61. Tuesday’s fresh inflation data release reassured investors, who have feared that President Donald Trump’s broad tariff policies could spike prices in the U.S. economy. Expectations for lower rates soared following the report. Traders are now pricing in a 94% chance of a rate cut next month, per trading data from the CME’s FedWatch Tool. That’s up from an 85% chance before the data release. Traders also increased their bets on rate cuts in October and December.
3. Gold nudges higher after U.S. inflation data
Gold prices edged higher on Tuesday after U.S. inflation data sustained expectations of Federal Reserve interest rate cuts, while attention turned to other key economic data due this week. Spot gold rose 0.1% to $3,347.34 an ounce. The dollar eased, making bullion cheaper for buyers holding other currencies. The U.S. Consumer Price Index rose 0.2% last month after gaining 0.3% in June. For the 12 months through July, the CPI advanced 2.7%. Economists polled by Reuters had forecast the CPI rising 0.2% in July and increasing 2.8% year-on-year. Other data due this week includes the U.S. Producer Price Index, weekly jobless claims, and retail sales. Among other metals, spot silver gained 0.9% to $37.92 an ounce, platinum firmed 0.9% to $1,338.73, while palladium dropped 0.5% to $1,129.57.
4. Oil prices ease as US and China extend tariffs deadline
Oil prices fell on Tuesday after the United States and China extended a pause on higher tariffs and data showed a rise in U.S. inflation in July. Brent crude futures lost 51 cents, or 0.77%, to close at $66.12 a barrel. U.S. West Texas Intermediate crude futures fell 79 cents, or 1.24%, to settle at $63.17. U.S. President Donald Trump extended a tariff truce with China to November 10, staving off triple-digit duties on Chinese goods as U.S. retailers prepared for the critical end-of-year holiday season. This raised hopes that an agreement could be reached between the world’s two largest economies and avert a virtual trade embargo between them. Tariffs risk slowing global growth, which could sap fuel demand and drag oil prices lower.
5. US consumer prices rise 2.7% annually in July, less than expected amid tariff worries
A widely followed measure of inflation accelerated slightly less than expected in July on an annual basis as President Donald Trump’s tariffs showed mostly modest impacts and investors grew more confidence about interest rate cuts ahead. The consumer price index increased a seasonally adjusted 0.2% for the month and 2.7% on a 12-month basis, the Bureau of Labor Statistics reported Tuesday. That compared with the respective Dow Jones estimates for 0.2% and 2.8%. Excluding food and energy, the core CPI increased 0.3% for the month and 3.1% from a year ago, compared with the forecasts for 0.3% and 3%. Federal Reserve officials generally consider core inflation to be a better reading for longer-term trends. The monthly core rate was the biggest increase since January while the annual rate was the highest since February.
6. Trump threatens Fed chair Powell with ‘major lawsuit,’ demands interest rate cut
President Donald Trump on Tuesday threatened to allow a “major lawsuit” against Federal Reserve Chairman Jerome Powell to proceed, escalating his pressure on the central bank leader to cut rates. Trump said in a Truth Social post that the suit would relate to Powell’s management of pricey renovations at the Fed’s headquarters in Washington, D.C., which the president has previously criticized. Trump did not say when that suit could be filed or by whom. “Jerome ‘Too Late’ Powell must NOW lower the rate,” Trump wrote in the post. The Fed declined to comment on Trump’s post.
7. India consumer inflation slows for ninth straight month — hits lowest since 2017
India’s consumer inflation continued to ease in July, dropping for a ninth straight month to 1.55%, below analysts’ estimates, government data showed Tuesday. The headline inflation rate fell on the back of declining growth in food prices, to its lowest level since June 2017. Economists polled had estimated July inflation at 1.76%. Food inflation, which is a key component of the consumer price index, came in at -1.76%, lower than the -1.06% print in June. The inflation reading comes after the Reserve Bank of India held rates at 5.5% in its policy meeting last week. The RBI said that the inflation outlook for the fiscal year ending March 2026 “has become more benign than expected,” adding that this was due to healthy sowing of autumn crops, as well as a comfortable buffer stocks of food grains. The central bank forecast inflation at 3.1% for the fiscal year.
8. Australia cuts interest rates to more than 2-year lows, downgrades economic growth forecast
Australia’s central bank cut its benchmark lending rates by 25 basis points on Tuesday, while downgrading the annual economic outlook for the country. The Reserve Bank of Australia reduced its economic growth forecast for the year to 1.7% from 2.1%, saying that a weaker-than-expected rise in public demand in early 2025 was unlikely to be offset through the rest of the year. The country’s benchmark rates are now at 3.6%, the lowest since April 2023, and in line with expectations of economists. The RBA said that inflation had dropped “substantially” since the peak in 2022, with steeper interest rates bringing aggregate demand and potential supply “closer towards balance.” Australia’s S&P/ASX 200 equity index was up about 0.3% after the decision, while the Australian dollar weakened 0.15% to trade at 0.6501 against the greenback.
9. China warns companies against using Nvidia and AMD chips, report says
China has told companies to refrain from using Nvidia’s H20 chips after the chipmaker recently received approval to resume shipping the less advanced artificial intelligence product according to sources familiar with the matter. Authorities have recently told companies to avoid using the Nvidia chips, or those from Advanced Micro Devices, for government and national security use cases, according to the news outlet. The report comes after the White House confirmed on Monday that both Nvidia and AMD have agreed to give 15% of all China revenues to the U.S. government. Last month, both companies said they would soon resume China shipments after the administration started requiring export licenses earlier this year. Both Nvidia’s H20 chip and AMD’s MI380 were created to work around previous AI chip restrictions to China due to national security fears. Shares of both stocks teetered on Tuesday.
10. Boeing’s July aircraft deliveries tumble 20% from June, trailing Airbus
U.S. platemaker Boeing said on Tuesday that it delivered 48 airplanes in July, down from 60 in June but five more than a year earlier. It was the most deliveries by the company in July since 2017, when it delivered 58 aircraft. Boeing continued to fall further behind European rival Airbus in deliveries this year. Airbus handed over 67 jets in July despite having a growing number of aircraft unable to be delivered because it lacks enough engines. That was down from 77 in July 2024, but it lifted Airbus’ year-to-date tally to 373, compared to Boeing’s 328. Airbus is also leading the U.S. plane maker in single-aisle jet deliveries, with 286 A320neo family jets compared to Boeing’s 243 737 MAX jets. About 66% of all commercial jets are single-aisle planes. Boeing delivered 37 of its best-selling 737 MAX jets in July, 20 of which were for aircraft lessors and 17 for airlines.
11. Perplexity offers to buy Google’s Chrome browser for $34.5 billion
Artificial intelligence startup Perplexity AI has made an unsolicited $34.5 billion bid for Google’s Chrome browser on Tuesday. That figure is higher than Perplexity’s current valuation, but the company said several investors have agreed to back the deal. In July, Perplexity was valued at $18 billion as part of an extension that valued the company at $14 billion months earlier. The startup is in the middle of a battle for supremacy in generative AI, with companies including Meta and OpenAI offering massive salaries and signing bonuses to top engineers. Perplexity was approached by Meta earlier this year about a potential acquisition, but the companies did not finalize a deal. Perplexity’s bid comes after the U.S. Department of Justice proposed Google divest Chrome as part of the antitrust suit the company lost last year.
12. Texas sues Eli Lilly for allegedly bribing providers to prescribe its medications
Texas Attorney General Ken Paxton on Tuesday sued U.S. drugmaker Eli Lilly for allegedly “bribing” providers to prescribe its medications. The attorney general’s office said in a statement that the company bribed and illegally induced medical providers to prescribe its most profitable drugs, including the GLP-1 medications Mounjaro and Zepbound, used for weight loss and diabetes treatment. “Big Pharma compromised medical decision-making by engaging in an illegal kickback scheme,” Attorney General Paxton said. The lawsuit builds upon Attorney General’s previous legal action to hold drug manufacturers accountable for fraud and abuse, the statement added.
13. Sea Limited shares jump as revenue surges 38% in second quarter
Sea Limited shares surged 9.4% premarket on Tuesday after the Southeast Asian tech firm reported second-quarter revenue that significantly exceeded analyst expectations, despite an earnings miss. The company posted revenue of $5.3 billion for the quarter ended June 30, 2025, soaring 38.2% year-over-year and handily beating the consensus estimate of $4.55 billion. However, adjusted earnings per share came in at $0.65, falling short of analysts’ expectations of $0.77. Net income reached $414.2 million, a dramatic improvement from $79.9 million in the same period last year. Sea’s e-commerce platform Shopee continued its strong performance with gross merchandise value (GMV) increasing 28.2% year-over-year to $29.8 billion, while gross orders grew 28.6% to 3.3 billion. The digital financial services segment saw revenue jump 70% to $882.8 million, while digital entertainment bookings rose 23.2% to $661.3 million.