A sense of invincibility rarely ends well, but it doesn't always end poorly either - and it's this uncertain exception that fuels current investor optimism. Every time concerns resurface - over U.S. debt, global trade disruptions, or geopolitical tensions - a new encouraging data point seems to restore the positive sentiment.

Futures remained flat in early trading. Hewlett Packard Enterprise jumped nearly 6.8% in premarket hours after reporting that its AI servers and cloud services exceeded expectations.

Nvidia rose another 0.7%, extending its recent rally. Fellow semiconductor companies Broadcom and AMD also gained, reflecting investor belief that artificial intelligence is a lifeline amid potential economic turbulence.

Still, while AI is shining bright, the broader economic backdrop remains murky. Global equity indices nudged toward record highs, though hesitantly, as Washington enforced steep tariffs on steel and aluminum - 50% duties.

Upcoming economic data could offer insight into the state of the U.S. economy. Friday's jobs report may offer the clearest picture yet of how tariffs are affecting consumer and business confidence ahead of the next Federal Reserve policy meeting.

For now, markets appear impervious to setbacks. Not public sector layoffs, not tariff fluctuations, nothing seems to unnerve them - and this has been true for several quarters. If it's not labor market resilience, it's consumer spending. Although sentiment surveys suggest gloom, spending remains steady. As a result, investors find themselves in a similar position to three years ago, when recession fears were perennially just a month away.

Warnings about negative economic outcomes are often heeded - at first. But when the dire predictions fail to materialize promptly, they are quickly forgotten. So far, Donald Trump's economic policies have not triggered runaway inflation or mass unemployment. Interest rates remain high, and this persistent macroeconomic strength has delayed the onset of monetary easing. Still, credit continues to flow, albeit at a higher cost, and economic doomsayers find themselves increasingly sidelined.

Market expectations for interest rate cuts have shifted significantly. Futures contracts now suggest two cuts, down from four or five anticipated earlier in the year, with the first possibly coming in October, though September remains a possibility. Traders have largely abandoned linear forecasts in favor of protection against sudden, extreme events - a sign of increasing volatility.

Hyperbolic rhetoric continues to dominate political and corporate communications. Donald Trump has touted a ‘great and beautiful bill,' which Elon Musk labeled a ‘repugnant abomination.' Corporations, too, have adopted grandiose language, describing routine agreements as major or historic strategic deals.

A key deadline also looms: the U.S. administration has set June 4 as the final day for trading partners to submit improved offers under the White House's tariff policy. This deadline, disclosed yesterday by Reuters and confirmed by officials, demands that nations benefiting from U.S. economic strength present better terms. What happens if they don't is unclear, but a torrent of aggressive rhetoric seems likely.

In the Asia-Pacific region, markets closed on a strong note. Taiwan and South Korea rose over 2%, Japan and Australia gained around 0.8%, China was up 0.5% in both Shanghai and Hong Kong, and India saw a modest 0.1% increase. Europe is also bullish.

Today's economic highlights:

On today's agenda: Japan's PMIs, followed by those of France, Germany, the Eurozone, and the United Kingdom; In South Africa, business confidence will be monitored; In the United States, the ADP employment change, PMIs, ISM Services Index, and DOE crude oil inventories will be in focus. See the full calendar here.

  • Dollar index: 98,970
  • Gold: $3,353
  • Crude Oil (BRENT): $65.24 (WTI) $62.50
  • United States 10 years: 4.44%
  • BITCOIN: $105,070

In corporate news:

  • Tesla saw UK car sales plummet over 45% and dropped 20% in Italy.
  • Wells Fargo had its asset cap lifted by the US Federal Reserve.
  • Hewlett Packard Enterprise surpassed quarterly revenue expectations.
  • Meta announced a 20-year power purchase agreement with Constellation Energy.
  • CrowdStrike loses 6% in after-hours trading following its quarterly results.
  • BlackRock removed from Texas blacklist after backtracking on climate policy.
  • EU antitrust authorities step up investigation into Visa and Mastercard.
  • Oneok buys remaining stake in Delaware Basin joint venture for $940 million.

Analyst Recommendations: