US equity indices were mixed on Tuesday as chip producers extended their selloff, contrasting with relief on other sectors. The S&P 500 was flat, while the Nasdaq 100 dropped 1% and the Dow gained 300 points. Concerns of slowing spending on AI infrastructure and the circularity of data center investments grappled compute and memory producers, with Micron, Sandisk dropping more than 7%. The sector was also punished by optimism on Chinese competitors following the strong CXMT IPO in Shanghai. Nvidia fell 1.5% and AMD lost around 5%. On the other hand, software-facing and non-tech shares were mostly higher, with Microsoft and Meta inching higher ahead of their earnings tomorrow. Credit costs extended their pullback, tracking lower energy pries as US officials signaled willingness for diplomacy with Iran. JPMorgan was higher to set the pace for the banks, while Visa gained 1% ahead of its earning release after the close. Also, Coca Cola gained 3% after boosting its outlook.

The S&P Cotality Case-Shiller 20-City Home Price Index rose 1.6% year-over-year in May 2026, accelerating from an upwardly revised 1.2% increase in April and exceeding market expectations of 1.3%. The annual gain was the strongest since August 2025. However, after adjusting for inflation, home prices declined for a 12th consecutive month, as May's 4.2% inflation rate outpaced nominal home price growth by 2.6 percentage points. For a third straight month, Chicago recorded the strongest annual price increase among the 20 cities, up 6.9%, followed by New York (4.2%) and Cleveland (3.1%). Meanwhile, Las Vegas posted the steepest decline (-1.9%), ahead of Seattle (-1.8%), Denver (-1.8%), and Tampa (-1.6%). On a monthly basis, home prices increased 0.9%, easing slightly from gains of 1.0% in April and 1.1% in March but continuing to reflect the seasonal strength typically seen during the spring homebuying season. On a seasonally adjusted basis, prices rose 0.2% from the previous month.

The US goods trade deficit narrowed to $101.5 billion in June 2026 from a 14-month high of $105.9 billion in May, according to preliminary data. Exports fell 1.8% to $204.7 billion, marking a second straight monthly decline and moving further below April's record high, driven by lower shipments of industrial supplies (-4.4%), foods, feeds, and beverages (-3.1%), and capital goods (-1.1%). Imports declined at a faster 2.6% to $306.2 billion, with purchases falling across all major categories, including consumer goods (-3.8%), capital goods (-2.0%), industrial supplies (-1.9%), vehicles (-2.5%), and foods, feeds, and beverages (-2.5%). In the first half of 2026, the cumulative goods trade deficit narrowed to $535.5 billion from $716.6 billion in the same period a year earlier, suggesting trade flows are continuing to normalize following last year's US tariff announcements, although uncertainty surrounding US trade policy remains.

The yield on the US 10-year Treasury note fell for a third consecutive session to 4.59% on Tuesday, its lowest level in about a week, as lower oil prices continued to support demand for government bonds. The ceasefire between the US and Iran appeared to be holding, while discussions involving Saudi Arabia and Oman over the future of the Strait of Hormuz remained in focus. Investors are also turning their attention to the Federal Reserve's two-day FOMC meeting, which begins today. The Fed is widely expected to keep the federal funds rate unchanged at tomorrow's policy decision, with markets assigning roughly a 35% probability of a rate hike. Traders will also closely scrutinise the voting split for clues on the likelihood of a September hike, which is currently priced at around 80%.

Industrial production in India expanded by 7.3% from the previous year in June of 2026, firmly above market expectations of a 5.7% growth rate to mark the sharpest pace of expansion in nearly two years. The result consolidated the rebound from lower growth rates in the start of the second quarter, when the war in the Middle East triggered energy shortages and lifted input costs for power-intensive industries. Manufacturing production surged by 7.8%, the most since the start of the year. In the meantime, output continued to surge for electricity and gas supply (10.6% vs 10.3% in May) and rebounded for mining and quarrying (1.0% vs -1.4%). From the previous month, industrial output expanded by 0.5%.

The unemployment rate in Spain fell to 9.87% in the second quarter of 2026, the lowest since the first quarter of 2008, compared to 10.83% in the previous period and forecasts of 10.7%. The number of unemployed persons declined by 213,300 to 2.495 million, with unemployment falling in all sectors: services (-170,300), agriculture (-22,400), industry (-10,900) and construction (-5,400). Unemployment fell by 57,700 among people who had been out of work for more than a year, while it increased by 53,400 among first-time job seekers. By gender, the number of unemployed men fell by 67,900 while the number of unemployed women declined by 145,400. The female unemployment rate dropped to 11.02%, while the male unemployment rate fell to 8.84%. Meanwhile, employment increased by 486,00 to 22.779 million, rising in services (+394,000), construction (+60,000) and industry (+38,200) while falling in agriculture (-6,200).