Global markets stay positive ahead of US inflation data

ISTANBUL

Global markets traded mostly higher as gains in technology and defense stocks offset concerns over the US Federal Reserve’s independence and geopolitical tensions, while investors focused on US inflation data scheduled for release Tuesday.

US inflation is expected to remain broadly stable, with a slight increase in core inflation. The inflation data is not expected to influence any changes in the Fed’s policy.

US President Donald Trump said on his social media account that the country may have to repay billions, or even trillions, of dollars generated from tariff revenues if the Supreme Court rules against the tariffs.

Markets have also been watching developments surrounding Federal Reserve Chair Jerome Powell, who is facing a criminal investigation probe, a move seen by analysts as an unprecedented challenge to the central bank’s independence.

While the immediate impact of the probe on global markets has so far been limited, concerns over the Fed’s independence are expected to remain a key market theme in 2026.

US Treasury Secretary Scott Bessent met finance ministers from the EU, Australia, Canada, France, Germany, India, Italy, Japan, Mexico, South Korea, and the UK to discuss securing and diversifying critical mineral supply chains, with a focus on rare earth elements.

In the corporate sector, media company Paramount filed a lawsuit seeking disclosure of key financial information to allow shareholders to make informed decisions regarding the proposed acquisition of Warner Bros. Discovery.

Following these developments, the US 10-year Treasury yield fell 1 basis point to 4.18%, while the US Dollar Index rose 0.1% to 99. Gold climbed 0.1% to $4,598 per ounce, and Brent crude oil gained 0.3% to $63.8 per barrel.

The New York Stock Exchange enjoyed a positive trading day on Monday.

Trump’s call for a one-year 10% cap on credit card interest rates weighed on bank shares, with Wells Fargo and Bank of America falling about 1%, JPMorgan Chase down 1.5%, Citi losing 3%, and Capital One dropping around 6%.

Technology shares provided support. Apple rose 0.3% following the announcement of next-generation artificial intelligence (AI) and cloud technology development with Google based on the Gemini model.

Alphabet, Google’s parent company, saw its market capitalization reach $4 trillion and ended Monday up 1%.

Nvidia and Eli Lilly announced a five-year joint research project worth $1 billion, pushing Eli Lilly shares up 1.6%.

Investors are also awaiting earnings reports this week from JPMorgan Chase, Bank of America, Morgan Stanley and Goldman Sachs.

The Dow Jones Industrial Average rose 0.17%, the S&P 500 gained 0.16%, and the Nasdaq advanced 0.26%. The Dow Jones and the S&P 500 closed at record highs of 49,633.35 and 6,986.33 points, respectively. US stock futures were trading lower early Tuesday.