Tech Stocks (Especially Chips) Regain Momentum and Precious Metals Post Big Rebound

Indian equities and the rupee are in play after the tariff-slashing trade agreement with the United States

Key Takeaways

• Equity Market Rally Poised to Continue: There is positive follow-through to the global bull market gains of yesterday, with U.S. futures being led higher in the overnight trade by the Tech sector (following Palantir’s solid results — YoY revenue growth of +70% to $1.41 billion), European markets up by +0.9% to fresh record highs, and advances across most of Asia.

• Dollar Rally Stalls as Gold Rebounds: The DXY dollar rally has hit the wall before approaching anywhere near any of its major trendlines, while gold and silver are staging big rebounds. The big winner in the FX sweepstakes was the Australian dollar, which has spiked by +1.2% to 70.33 cents (U.S.) on the back of what can only be described as a “hawkish hike” out of the RBA.

• Fiscal Gridlock Will Come After the Midterms: The big question that will still have to be answered is when the bullish consensus begins to focus on the midterm elections, as young voters and Latinos are moving away from the GOP. The odds have moved up to 78% that the Democrats will win the House this coming November, which means fiscal gridlock out to 2028 will supplant the era of endless fiscal support that has been the true lifeline for this near-six-year economic expansion (even more powerful than the AI buildout).