- On Tuesday, US stock futures rose as optimism over artificial intelligence fuelled a surge in chipmakers and tech sectors. Treasuries rose on anticipation that Congress would pass a debt agreement to avoid a default.
- The S&P 500 and Nasdaq 100 futures contracts increased 0.5% and 1.1%, respectively. Nvidia's market capitalization is expected to surpass $1 trillion as it rose in premarket trade following the announcement of various AI-related products and services by CEO Huang. Several AI-related firms rose in value as well, including AMD, Intel, Qualcomm, and Meta.
- European stocks fluctuated, with technology stocks outperforming. Eurozone government bonds gained ground as data showed that inflation in Spain slowed more than expected in May.
- Nevertheless, Treasury yields fell across the curve as the White House and Republican congressional leaders increased their efforts for a debt-ceiling agreement. Short-dated bill yields, which are most vulnerable to default, have fallen from recent highs. The dollar index fell for a third day.
- The BoJ, MoF and FSA officials are to hold an emergency meeting.
- Japan's Top Currency Diplomat Kanda: We are closely watching FX moves and we will respond appropriately if required.
- Democratic Rep. Boyle: Enough Democrats will support the debt-limit deal.
