SoSoMacro

Watch for U.S. sector tariffs; China-U.S. relations show continued warming signs; focus on Russia-Ukraine conflict.

Market Performance:

• U.S. major indices rise across the board: Dow up 0.20%, Nasdaq gains 0.27%, S&P 500 advances 0.14%
• Chinese ADRs mixed, Hong Kong stocks broadly higher
• European markets, Asian and emerging markets show mixed results

Here’s today’s SoSoMacro Recap — spotlighting the key signals driving markets at this moment:

1. Watch for U.S. sector tariffs: U.S. Commerce Department launches Section 232 investigations into drones and polysilicon, potentially leading to sector-specific tariffs; U.S. imposes 17% anti-dumping tariffs on Mexican tomatoes; Malaysia tightens transit scrutiny of AI chips.

2. China-U.S. relations show continued warming tendency: China's market regulator approved Synopsys' $35 billion acquisition of Ansys on Monday, a deal previously suspended due to deteriorating China-U.S. relations; China received three Boeing aircraft on Sunday, a rare triple handover in one day.

3. Fed officials speak: Cleveland Fed President Beth Hammack emphasized the Fed still needs to wait and see, with current rates approaching neutral levels. She expects no rate cut in July.

4. Focus on Russia-Ukraine conflict: Trump sets 50-day deadline for Russia to make a ceasefire deal, but the threatening language remains vague, leaving significant room for interpretation. The U.S. will provide Ukraine with Patriot missiles and other weapons through NATO, expanding defense orders.