Major U.S. indexes were mixed Monday as U.S.-China trade talks began in London and entered a second day.
United States Secretary of Commerce Secretary Howard Lutnick expressed hope for a resolution by Tuesday night, though talks may extend into Wednesday, signalling a possible thaw in tensions.
Tesla rallied for a second straight session on Tuesday, gaining 5.7% to close at $326.09, nearly recovering from last week’s 14% slide following Elon Musk’s clash with President Trump.
Tesla shares rose after Elon Musk posted a video of a driverless Model Y in Austin and said robotaxi rides will “tentatively” begin on June 22.
The US stock market has rallied in recent weeks, rebounding from April’s slump triggered by President Trump’s sweeping “Liberation Day” tariffs.
Among the Magnificent Seven, Tesla gained 5.7%, while Microsoft dipped 0.4%. Alphabet rose 1.4% following reports that OpenAI may integrate Google Cloud to support its expanding computing needs.
Apple added 0.6%, Amazon edged up 0.3%, Meta Platforms rose 1.2%, and Nvidia advanced 0.93%.
At the New York close, preliminary data showed the Dow Jones Industrial Average rose 0.25% to 42,866.87 points.
The S&P 500, a key global benchmark, rose 0.55% to close the session at 6,038.81 points, while the tech-rich sector gained 0.63% to 19,714.99 points.
Investors are eyeing Wednesday’s US Consumer Price Index (CPI) data for signals on the Federal Reserve’s rate path.
May headline CPI is expected to rise 2.5% year-on-year, up from April’s 2.3%, suggesting a modest pickup in inflation.
Core CPI, which excludes food and energy, is forecast to rise from 2.8% to 2.9% year-over-year.
The results could shape market expectations for the Fed’s next move.
Meanwhile, Sydney property prices are rising again following the RBA’s recent interest rate cut.
Buyer sentiment has improved, creating fresh momentum in the housing market.
However, apartment prices have outpaced houses in nearly two-thirds of suburbs, driven by affordability, rising construction costs, and changing buyer preferences.
According to news sources, unit prices jumped more than 20% in 178 suburbs in the year to May, supported by demand linked to affordability, safety concerns, and rising development costs.
In Brisbane, Sydney, and Perth, apartments outperformed houses in over 70% of suburbs.
Markets are now pricing in a 97% chance of a July rate cut after a week of weak economic data.
The Reserve Bank of Australia (RBA) is expected to deliver a third consecutive cut on July 7–8, lowering the cash rate from 3.85% to 3.6%.
Expectations for another rate cut surged after Wednesday’s data showed GDP grew just 0.2% in Q1, well below the RBA’s 0.45% forecast.
With inflation within the 2–3% target range and expected to remain stable, the question arises whether the RBA should accelerate its rate cuts.
In other markets, Bitcoin (BTC) holds firm above US$109,000, showing stability over the past 24 hours.
BTC/USD remains near its all-time high of US$111,000, gaining 4% over the week despite market volatility. Bitcoin last closed at US$109,600.
Spot gold settled at US$3,338 an ounce, while in the energy sector, Brent crude settled at $66.88 a barrel, while US West Texas Intermediate crude (WTI) closed at $64.00.
Meanwhile, the US Dollar Index (DXY), which tracks the greenback against a basket of currencies, remained flat at 99.12 at the New York close.
The Eurodollar was 1.1410, and the British pound finished at 1.3482. The Japanese yen ended at 145.10, and the Australian dollar was at 0.6512.