Wall Street Week Ahead: US stocks edge toward records with inflation data, policy progress in focus
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
The U.S. stock rebound has driven key indexes to the cusp of record levels, with fresh economic data and trade and fiscal policy developments set to test whether equities will get an extra push higher in the near term.A monthly U.S. inflation report headlines the events for markets in the coming week. Equities have bounced back from a steep fall in April, sparked by concerns about the economic fallout from President Donald Trump's tariff plans.Stocks hit a speed bump on Thursday as a public rift between Trump and Tesla chief Elon Musk sent shares of the electric vehicle maker down 14%.The benchmark S&P 500 ended on Thursday just over 3% off its record closing high from February. It closed down 0.5% on the day as Tesla's tumble offset news of progress in tariff talks between Trump and Chinese President Xi Jinping. "I'd still say it's a cautious tone" in the market, said Jim Baird, chief investment officer with Plante Moran Financial Advisors. Despite a "recovery off the lows, I still think it's a market that is looking for greater clarity."Some uncertainty stems from how the U.S. economy is weathering the shifting trade backdrop. Trump has eased back on some of the harshest tariffs since his April 2 "Liberation Day" announcement sent stocks tumbling, but investors are waiting to see how other levies may be rippling through the economy.The consumer price index report for May, due on Wednesday, could give insight into the tariff impact at a time investors are wary of any flare-ups in inflation."Consumers are feeling the impact of higher prices and if there are indications that near-term inflation could re-accelerate, that is going to put further pressure on discretionary spending and ultimately could lead to a more pronounced slowdown in growth," Baird said. The CPI report will be one of the last key pieces of data before the Federal Reserve 's June 17-18 meeting.The U.S. central bank is widely expected to hold interest rates steady at that meeting, but traders are pricing in about two 25-basis point cuts by the end of the year."If we see inflationary data that defies what people are concerned about based on this tariff talk and it comes in cooler, then that could also be a catalyst to at least test those old highs," said Jay Woods, chief global strategist at Freedom Capital Markets. For the year, the S&P 500 is up about 1%. But the index has stormed back over 19% since April 8, at the depth of the stock market's plunge on concerns over the tariff fallout.Investors also are grappling with uncertainty over a sweeping tax-cut and spending bill under review in the U.S. Senate. Wall Street is monitoring how much the legislation could stimulate economic growth , but also inflate the country's debt burden as widening fiscal deficits have become a central concern for markets in recent weeks."As debt increases, it has a greater negative impact on growth," said Kristina Hooper, chief market strategist at Man Group. The legislation also appeared to be the source of a severe rift between Trump and Musk, who had been his strong ally. Musk called the bill at the heart of Trump's agenda a "disgusting abomination," while Trump said he was "disappointed" by the billionaire's public opposition.Trade talks also remain at the forefront of markets, with a 90-day pause on a wide array of Trump's tariffs set to end on July 8. "When it comes to policy from Washington, D.C., there are still big question marks," said Bob Doll, chief investment office at Crossmark Global Investments.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
6 minutes ago
- The Hindu
Africa is challenging China's mining hegemony
Over the past two decades, China has entrenched itself as a dominant actor in Africa's mining sector. But signs are mounting that the tide is beginning to turn. A new wave of resistance, driven by increased scrutiny from African governments as well as civil society activism, is starting to challenge China's long-standing dominance in Africa's mining industry. Chinese firms have often failed to deliver promised skills transfer or infrastructure. Consequently, African nations are growingly asserting their rights to value-added development. The old model of raw resource extraction in exchange for infrastructure or investments is no longer tenable in a region demanding agency, accountability, and economic sovereignty. No longer passive partners Africa is home to some of the world's richest reserves of critical minerals. The Democratic Republic of Congo (DRC) alone produces 80% of the world's cobalt, a mineral indispensable for rechargeable batteries. China controls around 80% of that output through long-standing agreements such as the Sino Congolaise des Mines (Sicomines) deal, which granted Chinese firms mining rights in exchange for infrastructure projects. However, the benefits to local Congolese have been disproportionate to the mineral wealth extracted. Congo's cobalt ban: Impact on global market explained According to the civil society coalition Congo Is Not for Sale (CNPAV), tax exemptions granted to Chinese companies cost the DRC approximately $132 million in 2024 alone. These losses have spurred public outrage, and citizens have called for a full review of the Sicomines deal. Further, since the payments are tied to market prices, there is a real risk that the country could receive little or no infrastructure investment during downturns. Faced with mounting criticism, the Congolese government was forced to renegotiate the existing contracts with China, especially in light of fluctuating copper prices. The DRC reportedly plans to increase its stake in a joint venture with Chinese firms Sinohydro and China Railway Group, raising its ownership from 32% to 70%. Last year, after Congo's state-owned miner, Gecamines, voiced its opposition, the sale of Trafigura-backed miner Chemaf Resources to China's Norin Mining was cancelled. In Namibia, China's Xinfeng Investments has been accused of acquiring its lithium mine through a bribe of N$ 50 million. Over the years, Xinfeng has exported thousands of tonnes of raw lithium ore to China but has not constructed the promised processing facilities. Workers at the company have also reported hazardous working conditions and substandard housing. In 2023, China's Zhejiang Huayou Cobalt invested $300 million to construct a lithium processing plant in Zimbabwe. Most benefits will likely flow back to China unless robust regulatory frameworks and local capacity-building initiatives are implemented. China's dominance has also triggered environmental and social concerns. In Hwange National Park in Zimbabwe, Chinese firm Sunny Yi Feng's application for coal mining permits has been blocked by environmental authorities. In Zambia, a catastrophic acid spill from a Chinese-owned copper mine contaminated a significant tributary of the Kafue River, one of the country's most critical water sources. In Cameroon, resistance is growing against the massive Lobé-Kribi Iron Ore Project led by Sinosteel Cam S.A., a subsidiary of China's Sinosteel Corporation. Local NGOs have warned that the project threatens ecosystems, public health, and cultural heritage. Many community members see the project as a fait accompli, pushed through without adequate consultation or benefit-sharing. Across Africa, Beijing's once-unquestioned mining dominance is now being scrutinised more closely, with a growing demand for fairer, more transparent partnerships. This signals a newfound assertiveness by African governments, who are no longer content to act as passive partners in resource exploitation. Policy changes Meanwhile, strategic policy changes are also occurring. In 2022, Zimbabwe banned the export of unprocessed lithium to force investors to build local processing plants. In 2023, Namibia implemented a similar export ban on unprocessed lithium and other critical minerals. These countries aim to retain more value from their mineral wealth by requiring local beneficiation. Similar stories are unfolding across the continent. Still, policy alone is not enough. These export bans must match broader economic strategies to ensure local participation in processing and transformation. Otherwise, they risk simply shifting exploitation from one form to another. African leaders must ensure that domestic processing leads to fundamental economic transformation, not just a new phase of elite capture. China may still be Africa's largest mining partner, but the future of its dominance is no longer guaranteed. Moreover, a clear shift is underway, where African nations are reasserting sovereignty over their natural resources. By challenging opaque contracts, enforcing environmental standards, and demanding value addition, they are redrawing the terms of engagement. If these trends continue, African countries are poised to reshape the global supply chain for minerals and their role within it, moving from exporters of raw materials to integral partners in the emerging green economy. This change would come at the expense of China's long-standing dominance in the African mining sector. Samir Bhattacharya, Associate Fellow, Observer Research Foundation
India Today
6 minutes ago
- India Today
US tariff impact will be temporary, private sector should step up: Chief economist
Chief Economic Advisor V Anantha Nageswaran on Wednesday said US tariffs-related challenges will dissipate in the next one or two quarters, and urged the private sector to do more as the country navigates through other longer-term attributed the growth slowdown in FY25, which saw a deceleration to 6.5 per cent from FY24's 9.2 per cent, to tight credit conditions and liquidity issues. The right agriculture policies can add 25 per cent to real GDP growth, Nageswaran the US tariffs, the CEA said it is the second and third order impacts, which will flow once sectors like gems and jewellery, shrimps and textiles have taken the first order brunt, that will be "more difficult" to tackle. The government is aware of the situation and conversations with the impacted sectors have already begun, Nageswaran said, adding that one will hear from the policymakers in the coming days and weeks, but people have to be speculation on whether US officials will visit India for trade talks later this month as reported, Nageswaran said the upcoming meet in Alaska between US President Donald Trump and his Russian counterpart Vladmir Putin is likely to influence the to spell out any details on the trade negotiations between India and the US, the academic-turned-advisor said things are very fluid at the world stage right now with relations swinging from cooperation to stalemate, and spelled out his expectation of the impact of a 50 per cent US tariff on Indian exports."I do believe that the current situation will ease out in a quarter or two. I don't think that from a long-term picture, the India impact will be that significant but in the short run, there will be some impact," he said no one can guess the exact reasons why President Donald Trump chose to slap the high tariffs on India, wondering if it's the fallout of Operation Sindoor or something even more the CEA said the focus on tariff-related issues should not blind us to more "important challenges", including the impact of artificial intelligence, reliance on one country for critical minerals, and their processing and strengthening of supply exhorted the private sector to do more "as we navigate these longer-term challenges, promising that public policy will play the facilitator's role"."Private sector also has a lot of thinking to do, given the massive strategic challenges we face in the coming years... the private sector also has to think about the long-term rather than the next quarter, which is what might have led to many of the challenges we are currently beginning to face," he said in the comments aimed at India however, did not elaborate on the subject any that the government has allocated money towards the research purposes, he said it is now for the private sector to up their investments in the Indian youth is staring at both physical and health issues arising from excess screen use, consumption of ultra-processed food, etc, which is leading to anxieties and even suicidal thoughts among people, the CEA said, seeking the private sector's help to tackle the welcomed the capital expenditure put in by the private sector in FY26 and data to be released in February next year will attest to the consumption story is "quite healthy", the CEA said, pointing to the data on UPI usage. Specifically on urban consumption, he rued that there is no proper data source to capture services consumption, and added that drawing from listed companies' earnings may also not be the right measure as consumption is moving to the unlisted overall resource mobilisation in the economy is not showing any slackening, the CEA said, asking all to look at banks credit growth, commercial paper issuances, and IPO fundraising China, Nageswaran said "we also need to understand the security dimension and look at the USD 100 billion trade deficit beyond just the number". As a solution, there is a need to diversify the sources of imports and the CEA stressed that the private sector will have a role to play naming China, he said only one country supplies critical minerals, which are essential for semiconductors, artificial intelligence tech, and added that the supply is "critically unstable"."We cannot go from crude oil import dependence to critical minerals and ladders import dependence. Understand that crude oil (sources) at least is more diversified," he said."Indian policy-makers must choose between accepting permanent strategic dependence on adversaries or committing the resources necessary for genuine support to independence," Nageswaran that AI will cause labour displacement, Nageswaran pitched for caution in AI adoption and added that "we will have to choose the areas in which we allow AI to be deployed and harnessed, and also the speed with which we do so".There is a need to create at least 80 lakh new jobs per annum in the next 10–12 years, he added.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsMust Watch
India Today
34 minutes ago
- India Today
Bullish crypto exchange soars to $13.2B in NYSE debut
Cryptocurrency exchange operator Bullish BLSH.N was valued at about $13.16 billion after its shares more than doubled in their NYSE debut on Wednesday, underscoring investor confidence in the sector and lifting prospects for future U.S. listings by other digital asset parent of crypto news website CoinDesk raised $1.11 billion in its IPO, valuing the company at $5.4 billion — another sign of mainstream adoption in a market that recently topped $4 came out with an attractive initial valuation, and investors responded by aggressively bidding it up during the pre-IPO process," said Jeff Zell, senior research analyst at IPO Boutique. The stock opened at $90 and was trading over 150% its IPO price of $37 in afternoon trading. It went as high as $118, before paring gains slightly to trade at $92.60.A string of regulatory wins under a pro-crypto White House, corporate treasury adoption and ETF inflows have prompted investors to embrace the once-scorned digital asset class, driving bellwether bitcoin BTC= to record operator Gemini and asset manager Grayscale are also among the crypto firms that have confidentially filed to go public."We've gone public today, and there's a slew of others that are going to follow us, and I think that is net beneficial, because it gives people more options in terms of how they access this asset class," Bullish President Chris Tyrer told Reuters in an is close to concluding a two-year process to obtain a virtual currency license known as a "BitLicense" in New York, which would allow the company to operate in the state, Tyrer BitLicense requires companies to comply with requirements related to know-your-customer, anti-money laundering and Thiel-backed Bullish plans to convert a significant portion of the IPO proceeds to stablecoins — a slice of the crypto space that has boomed since U.S. President Donald Trump signed the Genius Act, creating a regulatory regime for the dollar-pegged FOCUSBullish's debut marks a rare U.S. listing by a crypto exchange, joining larger retail-focused rival Coinbase COIN.O, which became the first crypto player to be included in the benchmark S&P 500 .SPX index in in 2020, Bullish targets institutional clients, whose crypto holdings are expected to rise as a new White House order aims to allow alternative investments in 401(k) retirement plans."A pure institutional strategy positions Bullish for more stable, recurring revenue than exchanges reliant on retail volumes, which tend to be cyclical and sentiment-driven," said Michael Hall, co-chief investment officer and founding partner at Nickel Digital Asset CEO Tom Farley was previously the president of the a sector still overcoming reputational headwinds, that kind of leadership experience can be a differentiator in securing institutional mandates," Hall said.- Ends
