Macro Wrap

The major US equity indexes ended mixed on Tue. The Dow Jones Industrial Average rose 179.37 points (+0.40%) to close at 44,502.44. The S&P 500 ticked up 4.02 points (+0.06%) to end at 6,309.62. Tue marked the 11th closing record of 2025 for the benchmark index. Meanwhile, the Nasdaq Composite slipped 81.48 points (-0.39%) to close at 20,892.69, weighed by declines in tech stocks.

The US dollar was softer against all its G10 peers, with the DXY index falling for a third straight session easing to 97.38. US Treasury yields were down across the curve with the long end rallying for a fifth consecutive session. 10-year yields are down 15 basis points in five sessions, while 30-year yields are down 10 basis points over the same period. Fed rate cut expectations remain little changed with just shy of 2 cuts expected for the remainder of the year.

Trump announced a new trade deal with Japan, involving USD 550 billion investment into the US and a 15% reciprocal tariff on Japanese goods while US tariffs on Japanese autos and auto parts will total also be at 15%, additionally Japan will open its markets to American cars, trucks, rice, and more. Sentimentally positive for Auto sector, and Aluminium demand.

Economic data watch: The focus remains on trade tariff developments. And US existing home sales data.