Top Global Economic Highlights from Last Week

United States Stock Market Bounces Back – Apple’s $100B Injection is the Big Buzz

Last week’s slump was a quick dip – this week, the Nasdaq turns the corner and ends up on a high note that still has everyone smiling.

The Big Three and a Mid-Cap Sidekick

Nasdaq Composite – hit a record top, proving tech is still a rock‑star.
S&P 500 – joined the party with a solid lift.
Russell 2000 – small caps didn’t miss out on the fun.
S&P MidCap 400 – a bit shy but finished the week on a positive track.

Why Everyone is Feeling Sunny

Apple’s latest “wow” move is the headline headline: a staggering $100 billion to build new U.S. factories over the next four years—on top of the already promised $500 billion. That means more jobs, more chips, and a sweet treaty that clears the company from the hefty semiconductor tariffs that other firms are still feeling.

When the news broke, Apple shares jumped over 13 %, giving the broader indices a tiny but mighty boost.

Trade Tensions Still Striking a Chord

While the market didn’t react as hard as it used to, new global tariffs came into force Thursday. Some trading partners hammered out last‑minute deals, but India gets a 50 % hike for buying Russian oil, and a trade deal with Switzerland fell flat, an 39 % tariff staying in place.

Fed Watch: May or May-Day?

Federal Reserve officials are hinting that a September rate cut might be on the table, especially if the labor market cools down further and inflation keeps on wafting.

CME FedWatch attached a ~90 % chance of a cut.
ISM services PMI slid to 50.1 in July – just tickling the contraction line.
Jobless claims hit the highest spike since late 2021.

Bonds: The Tsunami of Yields

U.S. Treasuries took a hit, causing yields to rise across most maturities.
Municipal and investment‑grade corporate bonds outperformed, thanks to high demand and solid market conditions.
High‑yield bonds also bounced back, riding a cleaner macro backdrop.

All in all, the Wall Street wind is still blowing in the right direction, thanks to Apple’s big bucks, a bit of trade drama, and a Fed that’s making room for a possible rate cut.

Europe

European Stocks Bask in Strong Corporate Numbers & Diplomatic Positivity

Every Thursday, accountants play a long‑term love story with their numbers, and European markets just got a new chapter. STOXX Europe 600 zoomed up 2.11%, while Italy’s FTSE MIB strutted ahead with an impressive 4.21% rally. Germany’s DAX wasn’t shy, adding 3.15%, and France’s CAC 40 danced forward with 2.61%. The UK, though, took a modest stroll, nudging the FTSE 100 forward by 0.30%.

Bank of England’s Surprise Move: “It’s a Tightrope!”

The Bank of England (BoE) stunned everyone by trimming its key interest rate by 25 basis points to 4%. Governor Andrew Bailey reiterated that they’d stay extra-cautious before anything else. The move got approved only on a second‑round vote—rarely a thing in London’s policy house.

Speaking to market chatter, the BoE projected an inflation bump to 4% in September (up from the 3.6% expected in August). Money, poof! the price pressure still feels like a bad hair day, just far from the comfortable 2% target.

Eurozone Retail Sales: “It’s a Shopping Universe!”

Retailers, rejoice! The latest June drop‑in came in under 0.3% month‑on‑month and 3.1% year‑on‑year – hit the mark early. In a still‑green investor vibe, confidence rose in Q2, but August sentiment cooled just a tad. Some folks are wary of the newly revealed U.S.-EU trade framework – a rumor that’s making the Eurozone’s trading radar a little shaky.

Germany’s Industrial Slouch: ‘Are Baskets We Lying In?’

July saw industrial output tumble by 1.9% in June, the lowest since 2020.
Orders have taken a two‑month double‑dipped decline, thanks mainly to weak demand overseas.
Revised May output…

…showed a decline rather than an increase – giving a fresh wry hint that Germany’s GDP contraction is at odds with initial estimates.

TL;DR: Europe’s markets are moving forward, the BoE is taking a careful small step back, retail sales hang a little brighter, while Germany’s factory situation is still a bit wobbly. Keep your coffee on hand, because the news can be tasty and unexpected!

Asia

Asian Markets Clock Out a Sweet Win at Week’s End

After a whirlwind of earnings and a touch of trade optimism, the Asian stocks finally closed higher. Here’s the low‑down that kept the bulls in the market.

Japan: Stocks Rocking, JPY Staying Steady

Nikkei 225 surged 2.50%
TOPIX climbed 2.56%
Thanks to a U.S. promise that new tariffs won’t pile on the existing ones—especially the auto tariff dropping from 27.5% to 15%—investors breathed easier.
Yen sat comfortably around JPY 147 per dollar.
10‑year Japanese government bond yield eased to 1.49%.

The Bank of Japan remains split. A few directors are eyeing a potential policy switch by year‑end if U.S. tariffs don’t bite as hard as feared. Meanwhile, others argue for keeping the accommodative stance—after all, wages have been slipping for 15 consecutive months, and household spending is taking a nosedive thanks to higher living costs and the lingering uncertainty from trade.

China: Export Boosting the Bubbles

CSI 300 ticked up 1.23%
Shanghai Composite boomed 2.11%
Export data beat expectations with a 7.2% YoY jump, hitting USD 322 billion.
Europe, Southeast Asia, and Australia were the favorite destinations, offsetting a steep 22% dip in U.S. exports.
The weaker yuan gave Chinese goods a competitive edge abroad.
The services sector kicked back into gear, with the S&P China services PMI rising to 52.6—its best in 14 months.

Despite the turbulent property market, consumer activity is showing signs of resilience.

Looking Ahead: A Tightrope Between Trade and Money

The market’s future hinges on how trade policies play out, how central banks tweak their strategies, and how the uneven economic data pans out. If the recent rally holds, we could see a sustained surge; if not, it might be a case of “what a week.” Time will tell.