MARKET SNAPSHOT

U.S. stocks edged higher ahead of earnings from Nvidia. Treasury yields took another step downwards as demand returned following last week's selloff. Oil prices fell further as markets hope recent pressures force a deal. Gold prices fell alongside the dollar.

MARKET WRAPS EQUITIES

Markets edged higher in front of Nvidia earnings tomorrow and Federal Reserve news later this week.

Tech stocks climbed, with the Nasdaq composite leading gains. The index was up 0.7%, followed by the Dow industrials and S&P 500, which were both up 0.3%.

The latest twists in U.S.-Canada trade tensions aren't having much effect on markets yet. Ottawa this morning unveiled tariffs of 15%-50% on about $20 billion of American goods targeting steel, dairy, appliances and farm equipment, while President Trump threatened to change the name of Lake Ontario to Lake America.

In the Middle East, Treasury Secretary Scott Bessent's promised "economic D-Day" hasn't triggered the global domino of pain investors feared it could have. Notably, the measures announced stopped short of directly penalizing China, the main buyer of Iranian oil, a move that would have risked stoking tensions between the world's two biggest economies.

Earlier Tuesday, Asian equities were mixed as artificial intelligence-linked stocks slid.

South Korea's Kospi rebounded from earlier losses to end 0.7% higher. Hyundai Motor reached a tentative wage agreement with its labor union, ending months of on-and-off walkouts that have disrupted production.

China's Shanghai Composite gained 0.2% and the Shenzhen Composite Index added 0.3%. The tech-focused ChiNext Price Index, however, lost 1%. Hong Kong's Hang Seng Index ended flat.

Japan's Nikkei Stock Average increased 0.5%, led by gains in electronics and bank shares.

Stocks in Australia rose, as the S&P/ASX 200 added 0.7%. Minutes showed the Reserve Bank of Australia remains nervous about the inflation outlook and further interest-rate increases can't be ruled out.

New Zealand's S&P/NZX 50 Index added 0.8%.

COMMODITIES

Oil futures posted back-to-back losses as the U.S. tightens the economic squeeze on Iran, raising expectations the measures could bring Iran to the negotiating table.

Iran held more talks with Oman about establishing a safe shipping route through the Strait of Hormuz, with the Omani foreign ministry saying a temporary corridor could be announced soon.

"Future management of the strait and a permanent solution will follow in due course, as per article 5 of the Islamabad Memorandum," the ministry said.

The U.S. has rejected Iranian intentions of controlling or charging tolls to cross the strait, and has maintained its blockade of Iranian ports.

WTI settled down 3.1% at $82.36 a barrel, and Brent fell 3.9% to $88.58.

Front month Comex gold for August delivery lost 0.1% to settle at $4638.10 per troy ounce.

TODAY'S TOP HEADLINES

Canada Targets U.S. Metals, Fish, Foods, Motorcycles in Retaliatory Tariff Package

OTTAWA-Canada plans to impose tariffs of up to 50% on roughly 700 American products in retaliation for new U.S. levies, Canadian officials said Tuesday, escalating tensions between two of the world's most closely integrated economies.

Officials said that effective Sept. 8, or the day after Labor Day, Canada plans to place tariffs ranging between 15% and 50% on about $20 billion of goods, or roughly 7% of total U.S. imports. Among the products targeted by Canada are U.S. steel, aluminum, motorcycles, washers and dryers, chain saws, processed cheese, clams and frozen octopus.

U.S. steel and aluminum were already subject to a 25% tariff, but that will now double to 50%, officials said.

Fed May Need to Tighten Soon Without Progress on Inflation, Fed's Collins Says

Boston Federal Reserve President Susan Collins said Tuesday it would be appropriate to tighten policy soon if evidence of sustained inflation progress doesn't materialize.

In a piece published by The Boston Fed ahead of the Fed's annual gathering at Jackson Hole, Wyo., Collins said she was comfortable with Fed's July decision to maintain interest rates at their current target range, but leaving them there will require continued evidence that inflation is cooling.

"Should evidence of sustained inflation progress not materialize, I believe it will be appropriate to tighten policy soon to ensure we deliver price stability in a reasonable time frame," Collins said.

OpenAI's Head of Data Centers Has Left the Company

A key executive overseeing OpenAI's data-center build-out, Chris Malone, left the company last week, according to people familiar with the matter, joining a wave of leadership departures ahead of a planned public offering.

Malone joined OpenAI as head of data centers in March 2025, shortly after the company announced Stargate, an ambitious effort with Oracle and SoftBank to build data centers to meet its rapidly growing computing needs.

The Stargate effort got off to a rocky start, and OpenAI shifted toward signing deals with cloud providers rather than developing facilities itself. OpenAI is now reviving some of its internal data-center efforts through projects in which it leases entire facilities, rather than simply renting chips from cloud providers. But other leaders are heading that effort, not Malone, some of the people said.

Anthropic Expected to Tell Investors It Sees Over $30 Trillion in Potential Revenue

SpaceX's record-breaking IPO tested the limits of an obscure financial metric. Anthropic's could push it even further.

The maker of Claude is likely to tell investors its potential revenue opportunities are above $30 trillion, topping SpaceX's $28.5 trillion estimate, according to people familiar with the matter.

Tech startups or other growing companies going public often estimate their "total addressable markets," or TAMs, to show investors they have ample room to grow. Such figures estimate the amount of annual revenue a company could theoretically capture if it achieved 100% market-share using inputs ranging from industry data to bankers' models.

Intuit Forecasts Slower Growth, Takes Steps to Win More TurboTax Users

Intuit forecast slower sales growth in the year ahead as it navigates declines in its desktop business and attempts to woo more customers to its TurboTax platform.

Intuit stock fell about 14% in after hours trading. The stock had been down about 46% so far this year.

The company, known for its tax-preparation and accounting software, said it expects revenue to increase 9% to 10% for fiscal 2027, slowing from 14% growth this year. The forecast missed Wall Street's projection for a roughly 11% increase, according to FactSet.

Expected Major Events for Wednesday 01:00/AUS: Jun Westpac-Melbourne Institute Indexes of Economic Activity

01:30/AUS: 2Q Construction Work Done

01:30/AUS: Jul Consumer Price Index

02:00/SKA: Jul Department store sales

03:00/SKA: Jul New deposit, loan rates

05:00/SIN: Jul Industrial Production Index

07:00/THA: Bank of Thailand Monetary Policy Committee meeting and decision

08:59/JPN: Aug Monthly Economic Report

All times in GMT. Powered by Onclusive and Dow Jones.