U.S. stock futures edged higher after Wall Street closed flat on Monday, as markets weighed a U.S. credit rating downgrade by Moody’s and the advancement of a tax-cut bill that could worsen the nation’s fiscal outlook. Investors looked ahead to remarks from several Federal Reserve officials later today for clues on interest rate policy. Meanwhile, JPMorgan CEO Jamie Dimon warned that the full impact of tariffs had yet to hit the economy and cautioned that equities could fall as companies face rising supply costs. Shares of several solar energy companies fell after House Republican leaders planned to end some clean energy tax credits earlier than expected. Best Buy sank 3% after Wells Fargo lowered its price target on the stock. On the earnings front, investors awaited results from Home Depot and homebuilder Toll Brothers. Meanwhile, President Trump Sunday criticized Walmart for suggesting it would raise prices due to tariffs, urging both the retail giant and China to “eat the tariffs.
The stock market in India lost 188 points, or 0.2%, to 81,871 on Tuesday morning, retreating for the third straight session amid weaknesses in the healthcare, tech, and financial sectors. Markets consolidated for the third consecutive day after a sharp rally last week, while traders continued to monitor Q4 earnings results later today, including those from Hindalco. The Nifty 50 dropped 0.2% to below 24,900, with notable losses from HDFC Bank (-1.1%), Mahindra & Mahindra (-0.9%), Maruti Suzuki (-0.7%), and Kotak Mahindra Bank (-0.7%) Frankfurt’s DAX overcame early volatility to rise 0.7% on Monday, closing at a new record high of 23,935 and extending its rally to a third straight session. The index outperformed its European peers, supported by strong gains in Siemens Energy (+3.6%), Münchener Rück (+1.8%), Rheinmetall (+1.7%), Continental (+1.7%), and E.ON (+1.6%).
The Shanghai Composite rose 0.2% to above 3,370 while the Shenzhen Component gained 0.2% to 10,195 on Tuesday, as investors assessed the People’s Bank of China’s decision to cut key lending rates for the first time in seven months. At the May fixing, the PBoC lowered the one-year loan prime rate (LPR) by 10 basis points to 3.0% and the five-year LPR, which serves as a reference for mortgage rates, by the same margin to 3.5%. The move, widely expected by markets, aims to boost the sluggish economy amid trade tensions that threaten to hamper growth. Market sentiment was further boosted after shares of China's Contemporary Amperex Technology, the world’s largest battery manufacturer, surged in their Hong Kong debut, marking the largest global listing of 2025. Notable gainers include China Merchants Bank (0.8%), BYD Company (0.6%), and Kweichow Moutai (0.4%). On the downside, tech stocks fell after the US issued an industry warning against using Chinese chips that singled out Huawei.
