Market Snooze: Sunday Slumber Edition

Major U.S. News Headlines

• Fed Signals Steady Rates Amid Cooling Inflation (Bullish): Powell's latest remarks emphasize no rate cuts until Q2 2026 data confirms 2% target; S&P futures up 0.3% premarket as stability boosts bank stocks like JPM +1.2%.
• Congress Averts Shutdown with Bipartisan Deal (Bullish): Last-minute spending bill passes, averting fiscal cliff; industrials rally with CAT futures +0.8%, easing recession fears.
• Trump Pushes Tariffs on China Imports (Bearish): Incoming admin floats 60% tariffs; tech sector dips, NVDA futures -0.5%, amid supply chain jitters.

Key International News

• EU-China Trade Talks Stall (Bearish): Beijing rejects EV subsidy cuts, escalating tensions; European auto stocks like VW futures -1.1%, pressuring DAX open.
• Ukraine-Russia Ceasefire Hopes Fade (Bearish): Drone strikes intensify; energy futures volatile, defense stocks like BAE Systems +2% but broader risk-off sentiment weighs on global indices.
• India Boosts Defense Spending 10% (Bullish): Modi govt allocates $80B for military tech; Asian defense firms surge, L&T futures +1.5%, signaling regional growth pivot.

Global Stock Market Trends

• U.S. Futures Flat to Green: S&P +0.2%, Nasdaq +0.1%, Dow flat; quiet Sunday trading eyes Fed calm.
• Europe Mixed: FTSE futures -0.1%, DAX -0.3%, CAC +0.1%; tariff fears offset by ECB dovish hints.
• Asia Closed Higher: Nikkei +0.4%, Hang Seng +0.6%, Shanghai +0.2%; tech rebound led gains despite trade noise.

Commodity and Currency Movements

• Oil Dips on Demand Worries: WTI $71.50 (-0.8%), Brent $75.20 (-0.7%); bearish for energy stocks like XOM -0.4%.
• Gold Safe-Haven Shine: $2,650/oz (+0.5%); bullish amid geo-risks, GLD ETF futures +0.3%.
• USD Strengthens: DXY +0.3% to 105.2; yields steady, 10Y Treasury 4.15%; weighs on EM currencies.
• Crypto Volatile: BTC $98K (+1.2%) on weekend pump; bullish for COIN futures +0.8%.

Analysis of News Impact on the Stock Market

• Overall Bullish Tilt with Cautions: Fed stability and U.S. fiscal wins support risk assets, pushing S&P toward 6,000 resistance; however, tariff rhetoric and geo-tensions cap upside, favoring defensives like utilities (+0.5% sector futures). Traders eye Monday open for tariff details—watch tech (bearish risk) vs. banks (bullish). Volatility low at VIX 15.2 futures, but oil weakness signals rotation from energy. Net: Mildly bullish premarket, target SPY $595 support.