Macro

The Federal Reserve maintained its target interest rate at 3.50%-3.75% in June 2026, despite May's Consumer Price Index (CPI) rising to a three-year high of 4.2%. Futures markets predict the rate will reach 4% by year-end with no anticipated cuts, setting up the July FOMC meeting as a critical next test.

Late-stage mortgage delinquencies rose 18.6% year-on-year in December, driven by persistent housing affordability challenges, according to VantageScore. With $13.07 trillion in outstanding mortgages and rising costs, delinquency rates are increasing faster than other consumer credit types, signaling stress among homeowners. The trend may pressure credit scores and lending risk, highlighting broader market vulnerability despite still-low overall delinquency levels compared to the 2008 crisis.

The national average gasoline price hit a record high over Labor Day weekend, reaching $4 per gallon by Sept. 9, as the U.S.-Iran war drove Brent crude above $100 per barrel. Diesel exceeded $5 per gallon. Experts note that while fall typically brings lower prices due to reduced demand and cheaper winter blends, declines may be slow due to refining costs and retailer markups. The government has released 172 million barrels from the Strategic Petroleum Reserve and issued EPA waivers for E15 and E10 ethanol blends to ease supply disruptions. Some states have implemented fuel tax holidays.

Gas prices remain above $4 per gallon nationally, with diesel over $5, as the Strait of Hormuz closure enters its sixth month and Ukrainian attacks on Russian refineries persist, driving crude oil above $80 per barrel and Brent above $90. Patrick De Haan of GasBuddy warns the national average could reach $4.50 or approach $5 in a worst case, though the seasonal switch to cheaper winter-blend gasoline may offer some relief. Price declines are slow due to refining costs and distribution disruptions, following the pattern that pump prices 'rise like a rocket and fall like a feather.' Federal measures include EPA waivers for E15 and E10 fuel sales, and the Trump administration released 172 million barrels from the Strategic Petroleum Reserve, which has fallen below Biden-era lows to levels last seen in the early 1980s, dropping by an average of 6.3 million barrels weekly since early April. Some states have implemented fuel tax holidays.

Persistent high prices across food, gas, and leisure activities continue to strain US consumers, with costs remaining elevated above pre-pandemic levels and further pressured by the conflict with Iran. A typical grocery basket was 41% higher in July than in 2019, with coffee prices more than doubling and beef surging. Dining out is costly: cold brew averages $5.62, burgers $14.71, and beer $6.60. Movie tickets hit $13.48, domestic airfares rose to $367, and international flights to $878. Car ownership is pricier, with average new vehicle payments at $808 per month and transaction prices near $49,758, driving more consumers toward 84-month loans.

Mortgage rates rose for the fifth consecutive week, with the 30-year fixed rate climbing eight basis points to 6.46% for the week ending Wednesday, the highest since Sept. 4, according to Freddie Mac. The 15-year loan edged up two basis points to 5.77%. The increases, driven by market volatility tied to President Trump's comments on the Middle East war, have dampened spring home buying. The Mortgage Bankers Association reported overall loan applications fell over 10%, with refinances dropping 17% and down over 40% from last month. Purchase applications dipped only 3%, as a buyer's market in some areas offsets higher rates. New listings jumped over 20% from February to March, but economists caution that March's momentum may falter if economic uncertainty persists.

Treasury yields have surged to multiyear highs, driven by Middle East conflict, inflation fears, and heavy government borrowing, with the 10-year note reaching around 4.5%. This raises borrowing costs for mortgages, credit cards, and auto loans, while pressuring stock and bond markets. Higher yields reduce existing bond values and make risk-free government returns more attractive than equities. However, savers benefit from improved returns on CDs and short-term Treasurys. The national debt at $40 trillion could see $4 trillion in added interest costs over a decade per 1% rate increase. Investors are advised to review portfolios, consider shorter-duration bonds, and prepare for volatility.

Labor Day gas prices are set to hit a record high, with AAA reporting that August saw national average gas prices above $4 per gallon every day for the first time since 2022. GasBuddy predicts the holiday average will reach $4.03 per gallon, the highest nominal record, surpassing 2012's $3.83. Diesel hit a record $5.85 per gallon on Friday, driven by refinery disruptions from wars in Ukraine and Iran. To save, drivers can use gas station finder apps like GasBuddy (with real-time crowdsourced prices) or Google Maps, and cash-back apps like Upside offering up to 18 cents per gallon. Membership programs from grocery stores and wholesale clubs provide 5 to 30 cents off, while Amazon Prime members can get 10 cents off at BP and Amoco via the earnify app. For diesel, Open Roads offers discounts of 40 to 50 cents per gallon at over 3,000 truck stops, and Mudflap provides similar deals at 3,600 locations.

U.S. annual inflation hit 4.2% in May 2026, the highest since April 2023, driven by a 23.5% surge in energy prices amid the ongoing Iran conflict that began in late February. The war has closed the Strait of Hormuz, disrupting global oil transit and pushing gasoline prices up over 30%. Markets now see a higher chance the Federal Reserve will hold or raise interest rates, and that crude oil may reach a new all-time high. The next key data point is the June CPI report, due July 14, 2026.

The Federal Reserve held interest rates steady at 3.50%-3.75% during its June 16-17, 2026 meeting, but the dot plot revealed a dramatic hawkish pivot: nine of eighteen officials now project at least one 25-basis-point hike before year-end, with six expecting two or more, reversing March's implied cuts. The median year-end rate projection rose to 3.8% from 3.4%, and the median PCE inflation forecast surged to 3.6% from 2.7% (core PCE to 3.3% from 2.7%). GDP growth was trimmed to 2.2%, while unemployment held at 4.3%. Fed Chair Kevin Warsh's first decision saw a unanimous 12-0 vote, but the statement dropped easing bias language, emphasizing persistent inflation risks from supply shocks and geopolitical tensions. The Consumer Price Index rose 4.2% annually in May, the highest since April 2023, with energy prices accounting for over 60% of the increase. Markets repriced: the 10-year Treasury yield jumped, the S&P 500 faced pressure on growth stocks, and the US Dollar Index strengthened around 100.310. Financial and energy sectors benefit from higher rates, while technology stocks like NVIDIA face valuation compression; REITs and utilities declined. The labor market remains resilient with wage growth pressuring services prices, and housing costs show signs of reacceleration.

The Federal Reserve cut interest rates by 25 basis points to a range of 4.00%-4.25% in September 2025, the first cut of the year, citing a challenging economy and weakening labor market. Chair Jerome Powell described the move as a risk-management cut, balancing upside inflation risks with growing downside labor risks. The Fed's updated projections signal two more cuts this year, with the funds rate expected to reach 3.60% by year-end. Powell noted that a BLS revision overstated payrolls by 911,000 jobs over the past year, intensifying labor market concerns. Inflation remains elevated, with headline CPI at 2.9% year-on-year and core inflation steady at 3.1%. The decision was not unanimous, with new Fed governor Stephen Miran dissenting. Markets are pricing in further easing, with expectations of up to six cuts before reaching a terminal rate.

With inflation topping 4%, the Trump administration is easing pressure on new Federal Reserve Chairman Kevin Warsh to cut interest rates, granting him a political grace period. President Trump still wants rate cuts, but top advisors like Peter Navarro and Scott Bessent now advocate holding steady, citing inflation from the Iran war. Warsh kept rates unchanged, and markets see a 79% chance of a rate increase by December. Trump has expressed confidence in Warsh, though he recently reiterated calls for lower rates. Energy prices have fallen after a Strait of Hormuz deal, but Middle East instability persists, leaving the inflation outlook uncertain ahead of the Fed's July meeting.

Micron CEO Sanjay Mehrotra warned on June 25, 2026, that the global RAM and NAND flash shortage will persist through 2027, with supply only gradually improving in 2028. The shortage, driven by AI demand for High-Bandwidth Memory (HBM), has caused a structural reallocation of manufacturing capacity away from consumer-grade DDR5. HBM production displaces three or more bits of DDR5 per bit, leading to price hikes of 93-98% for DDR5 in Q1 2026 and doubling consumer RAM costs since mid-2025. Micron's revenues quadrupled year-over-year. The shortage affects PCs, smartphones, and consoles, with vendors warning of 15-20% price increases. Building new fabs takes years, and the sub-$500 PC segment may vanish by 2028. Gamers face 50% quarterly price hikes, and Micron exited its consumer Crucial brand to focus on AI clients like Google and NVIDIA.

A ceasefire between the U.S. and Iran in late June briefly allowed the International Maritime Organization to begin evacuating trapped ships and over 11,000 seafarers from the Strait of Hormuz, which Iran had effectively closed since late February after U.S. and Israeli attacks. The operation routed vessels along Oman's southern coastline, but halted days later when the Singapore-flagged Ever Lovely was attacked; no one claimed responsibility, but Iran's Revolutionary Guard criticized the evacuation as lacking Iranian involvement. Iran continues to assert control over the strait, demanding ships coordinate and obtain clearance, setting a dangerous precedent for other global waterways like the Strait of Gibraltar or Malacca. The strait normally carries about 20 million barrels of oil daily—20% of global consumption—and its closure has driven oil prices up, with Brent crude at $76 and WTI above $71, threatening inflation, corporate profits, and consumer spending. International maritime law, including the U.N. Convention on the Law of the Sea, offers little recourse as neither Iran nor the U.S. have ratified it, and President Trump's suggestion that the U.S. could control the strait and collect tolls further undermined confidence in the independence of international waterways.

South Korea's KOSPI has now fallen for three consecutive sessions, losing about $2.18 trillion in market value and putting the index on track for its steepest monthly drop on record. The benchmark plunged as much as 12.6% intraday on Tuesday before closing down 6%, extending Monday's near-11% rout and erasing almost 40% of its value from a peak reached just over a month ago. The cumulative decline from the June 19 all-time high of 9,385.59 now exceeds 3,722 points in six weeks, wiping out approximately ₩2.5 quadrillion and dropping the KOSPI from the world's sixth-largest stock market to 11th place. Under parliamentary pressure, Finance Minister Koo Yun-cheol apologized for the introduction of single-stock leveraged ETFs, saying they had not been considered carefully enough. After an emergency meeting late Wednesday with the Bank of Korea governor and financial regulators, the Ministry of Finance announced immediate further curbs on single-stock leveraged products, including individual investment limits (capped at up to 20% of an investor's total investment amount), higher trading costs, simulated trading requirements, and preparation of a legal basis for emergency market-stabilization steps. The Blue House, with President Lee Jae-myung in Brazil, has refused a bailout, characterizing the crash as a 'reassessment process' and citing external triggers including Chinese memory chip expansion and AI investment doubts, along with structural factors: excessive retail trading, derivative proliferation, and heavy concentration in Samsung Electronics and SK Hynix. Retail investors have erupted in fury, accusing the government of encouraging market entry with 'KOSPI 5000' or '9000' targets and now deflecting blame. Despite the tumble, the KOSPI is up 41.5% in US dollar terms year-to-date, making it the best-performing major market this year. The crash remains less severe than the 57% drop during the 2008 financial crisis, which unfolded over roughly a year.

Asian markets plunged as the US-Iran War escalated and Trump announced new tariffs, compounding global economic uncertainty. Japan's Nikkei, South Korea's Kospi, China's Shanghai Composite, and Hong Kong's Hang Seng all fell sharply, while US indices like the Dow Jones, Nasdaq, and S&P 500 also closed lower. Rising crude oil prices heightened concerns for India, threatening higher inflation and slower economic growth. The geopolitical tensions and trade policy shifts are pressuring investor sentiment, with certain sectors facing potential headwinds or benefits if the conflict persists.

Crop prices have hit a three-year high due to heat waves, conflict in the Black Sea disrupting grain trades, and the closure of the Strait of Hormuz, which has blockaded 3.9 million tonnes of urea exports—about 30% of the region's annual fertilizer exports. The International Food Policy Research Institute warns of an 'input crisis' that could become a full-blown food crisis, especially in poor countries, as fertilizer supply shortages rise. A UN report warns that rising energy and fertilizer prices from conflicts could push an additional 9 to 18 million people into hunger, with the average cost of a healthy diet increasing nearly 25% since 2021 to 4.28 PPP dollars per person per day.

Treasury Secretary Scott Bessent faces a $40 trillion refinancing challenge as the 10-year Treasury yield hit 4.705%, its highest since a brief spike in January 2025 and levels not seen since before the 2007 financial crisis. The 30-year yield reached 5.182%, driven by Brent crude topping $100 a barrel and jobless claims falling to 187,000, well below expectations. About half of Federal Reserve officials now anticipate a rate hike this year. Total federal debt stood at $39.065 trillion as of January 1, 2026, with much of it issued when 10-year yields were under 2%. As that debt matures, refinancing at current rates raises carrying costs, while the Fed's funds rate remains at 3.75% and core PCE inflation hit a 12-month high.

Indian stock markets crashed on Monday, with the Nifty 50 plunging 483 points to open at 23,566.7 and the BSE Sensex tumbling nearly 1,600 points to 75,948, driven by fears of an Iran-US war and a potential Strait of Hormuz blockade. The sell-off followed US President Donald Trump's warning of a blockade from 10 am Monday, after Iran-US peace talks failed in Pakistan on Sunday. Crude oil prices surged above $100 per barrel, exacerbating investor anxiety. The decline erased gains from the previous week, when indices had rallied about 4%. Key losers included IndiGo, Eicher Motors, and Asian Paints, while the India Vix volatility index jumped over 12%, reflecting heightened concerns over geopolitical risks.

Oil prices rose for a second day Wednesday and global stock markets were mixed as traders awaited key US inflation data that could push the Federal Reserve toward raising interest rates. With inflation above the Fed's 2% target for over five years and the Iran war since February compounding pressures, three Fed board members dissented in July to call for a rate hike, and investors now expect at least one increase before year-end. The ongoing closure of the Strait of Hormuz, with no breakthrough in US-Iran talks, has driven crude up about 14% in the past week. The International Energy Agency sharply cut its global oil demand forecast as the Middle East crisis crimps supply. In equities, Seoul's Kospi rose over 3% on strong earnings from AI firms CoreWeave and Super Micro Computer, while Hong Kong, Sydney, and European markets fell.

Indian stock markets crashed on Monday, with the Sensex tumbling 2,345 points and the Nifty 50 plunging 704 points below 24,000, as escalating US-Iran war fears drove crude oil to a 52-week high above $110 a barrel. The Indian rupee hit a record low of 92.3350 against the dollar, falling 0.6%, amid a broader sell-off across Asian currencies. The conflict, now in its second week following US-Israeli air strikes on Iran, has severely restricted shipping through the Strait of Hormuz. Over the weekend, Iranian drone strikes hit Saudi Arabia, Kuwait, and the UAE, heightening supply concerns. Global markets also slumped, with Dow futures sliding nearly 1,000 points and Asian indices dropping up to 8%.

Wednesday's US May CPI release is the most consequential data point ahead of the Federal Reserve's June 17 rate decision, with money markets pricing a 98% probability of a 25 basis-point hike by December. The May jobs report, which came in well above forecasts, has extinguished rate cut expectations that had been credible before the US-Iran conflict began. Analysts say a hotter-than-expected CPI print would make it very difficult for policymakers to resist further tightening, as inflation already runs persistently above the 2% target. A key watch point is whether energy-driven inflation, amplified by the US-Iran conflict and Hormuz disruption, is bleeding into core categories. Thursday's PPI figures will add a second layer, signaling where headline inflation may head in coming months.

South Korean stocks triggered circuit breakers on two consecutive days in late July, with the KOSPI plunging 16.2% and market value evaporating by $2.18 trillion. The government imposed emergency measures, including restricting leveraged ETFs blamed for amplifying volatility. Amid the economic turmoil, President Lee Jae-myung's disapproval rating broke 50% for the first time, hitting a record high, while his approval fell to 45.9%. Retail investor confidence collapsed, with many accusing the government of turning the market into a 'casino.' Youth unemployment also rose to 7% in June, driving more South Koreans to seek jobs in Japan.

The U.S.-China trade war, launched in 2018 under President Trump, began with American tariffs on Chinese goods citing unfair trade practices and national security concerns, escalating into a broader struggle for economic and technological dominance. China retaliated with its own tariffs, targeting politically sensitive U.S. sectors like agriculture. The conflict officially started on July 6, 2018, with a 25% tariff on $34 billion of Chinese imports, followed by further rounds. By end of 2019, the U.S. had tariffs on about $360 billion of Chinese goods, while China imposed duties on $110 billion of U.S. products. The dispute disrupted global supply chains, with manufacturers shifting to other countries, and extended into technology, including the blacklisting of Huawei.

Oil prices surged Monday after President Trump rejected Iran's conditional proposal to reopen the Strait of Hormuz, dashing hopes for a diplomatic resolution. WTI crude jumped 4.24% to $96.33 a barrel, while Brent crude climbed 2.7% to $107.11, after briefly hitting $108.83. The rejection erased Friday's declines, which had been fueled by optimism over a potential deal. Iran's seven-day framework would have required the U.S. to lift its naval blockade, unfreeze Iranian assets, and end oil sanctions; Trump said Iran overplayed its hand but that negotiations would resume this week. The physical supply disruption remains severe: Saudi Arabia's crude output collapsed to 6.24 million barrels per day in August, as both its East-West pipeline and the Bab el-Mandeb shipping lane have come under attack. U.S. distillate stocks sit 12% below their five-year average, and diesel hit a record $6.52 per gallon. Brent has risen over 70% since the start of 2026, and the Brent-WTI spread stands at $10.78, reflecting tight seaborne markets. The Dow fell 349 points, Treasury yields rose above 5%, and U.S. gasoline prices reached $4.48 per gallon. Trump is also considering banning diesel exports to combat soaring prices, as economists warn of broader inflationary effects.

A global bond sell-off deepened Thursday, with the US 30-year Treasury yield hitting 5.5% and the 10-year yield reaching 5.22%, both at multi-decade highs, though BlackRock's Rick Rieder called the move 'not a crisis but an eye-opener.' The 10-year yield had climbed as high as 5.12% on Wednesday, its highest since 2007, while the 30-year touched 5.4% and the 5-year also hit a 2007 high. Yields surged after S&P Global data showed robust US business activity and hot inflation from higher energy prices, with Brent crude settling at $106.60 per barrel. Traders raised bets on a Federal Reserve rate hike in October to 71%, up from 11% a month ago, and Fed officials reinforced that view: New York Fed president John Williams said Thursday it was reasonable to think the Fed may need to raise rates again before year-end, echoing governor Michael Barr's similar comments. The sell-off extended globally, with 10-year yields in France and Germany hitting 15-year highs and Japan's reaching 3.08%, a level not seen since 1996. Analysts said yields are likely to remain elevated due to persistent inflation and the energy shock from the Middle East conflict.

The 10-year U.S. Treasury yield topped 5% for the first time since 2023 on Monday, driven by surging oil prices after Saudi Arabia shut its critical East-West Pipeline and talks on the Strait of Hormuz were postponed. Brent crude rose above $109, and U.S. crude neared $105 per barrel, as vessel traffic through Hormuz fell to single digits. The national average for diesel hit a record $6.23 per gallon, while regular gas reached $4.31. Energy Secretary Chris Wright said the pipeline restart may be imminent. The Fed is now over 90% likely to hike interest rates on Wednesday, as economists warn that rising diesel costs will fuel broad inflation.

Diesel prices in the U.S. hit a record $6.05 per gallon, up over 60% from a year ago, as the Iran war drives energy costs higher. Yemen's Houthi rebels seized the Red Sea port of Mokha and the strategic islands of Perim, Greater Hanish, and Lesser Hanish in the Bab el-Mandeb Strait, threatening a key shipping route for Saudi oil. Iran called for an end to Saudi Arabia's blockade of Yemen and resumption of talks, while also planning discussions with Gulf states on managing the Strait of Hormuz, where it now requires vessel permission and imposes service fees. Saudi Crown Prince Mohammed bin Salman pressed President Trump to strike the Houthis, but the U.S. has only offered intelligence support. Analysts warn the war, launched in February, is likely protracted with no clear victor, as oil prices surged above $105 per barrel and low-level fighting persists.

Seven months into the U.S. war with Iran, launched on February 28, Moody's Analytics chief economist Mark Zandi estimates the conflict has cost the average U.S. household nearly $2,000—$1,100 in higher energy prices, $540 in higher interest rates, and $360 in military costs—with the energy portion growing by $50 a week. Total consumer costs are estimated at $265 billion, while the Pentagon reports $45.1 billion in direct war costs excluding base repairs. Gasoline averaged $4.33 per gallon on Friday, 45% above its prewar level of $2.98, and diesel hit $6.33, up 68% from $3.76; both are slightly below recent peaks of $4.56 and $6.53, respectively. This is the first October with average gas above $4. Home heating oil costs are expected to rise 21% this winter. Airfares are up 22% year-over-year, with domestic tickets averaging $445 in the second quarter, up from $405 in late 2025. The Strait of Hormuz remains dangerous, with 18 commercial ships hit by Iran this month, and Houthi attacks have intensified: a missile struck Saudi Aramco's headquarters, and 16 people were killed at Riyadh's King Khalid International Airport, which remains closed until at least October 17. Consumer confidence has fallen sharply, with only 27% approving of President Trump's economic handling. Wage growth is at a five-year low, real wages are declining, and 30-year fixed mortgage rates have reached 7.4%, adding about $360 in borrowing costs per household. Grocery prices are expected to rise 2.4% this year, below the historical average, as retailers absorb some costs, but experts warn fresh produce and perishables could see faster increases. Footwear prices are up 3.4% year-over-year, with men's shoes rising 4.5%. Transportation costs for goods sold to businesses are up 10.2%, with truck and water freight each up 19.3%, and parcel shipping costs are projected to hit record levels this quarter.

ExxonMobil and Chevron posted record third-quarter profits—$15.4 billion and $10.4 billion respectively—as the US-Iran war drove US gas prices to a record quarterly average of $4.12 per gallon, with the national average reaching $4.20 on Friday, down from $4.43 a month ago but up from $3.03 a year ago. ExxonMobil’s profit doubled year-on-year, and for the first time in at least six years, its refining revenue exceeded exploration and drilling income; Chevron’s downstream earnings also hit a six-year high, with its profit up over 180%. Both companies raised dividends, and their shares have risen 52% and 50% respectively since the start of the year. Brent crude traded near $118 per barrel, down from a post-invasion peak of $126. The war has cost US households an average of $1,184, with diesel prices peaking at a record $6.52 per gallon on Sept. 22, impacting trucking and consumer goods costs. The September CPI showed gas prices up 9.1% monthly and 34.2% year-over-year, with monthly swings of 21.2% in March, 5.4% in April, and 7% in May, followed by summer declines of 9.7% in June and 2.9% in July, then renewed increases of 3.9% in August and 9.1% in September. President Trump defended the windfall, saying the US is 'making a freaking fortune' from Middle East turmoil, while Democrats noted his oil holdings grew by up to $35.8 million in the first half of 2026, with 94% of his oil purchases occurring after the war started; the White House denied any conflict of interest. ExxonMobil CEO Darren Woods cited disruptions from the Strait of Hormuz closure and Ukrainian strikes taking half of Russia’s refining capacity offline. The Trump administration announced $150 million under the Defense Production Act to expand petroleum production and logistics.

US inflation, which fell from a 9.1% peak in June 2022 to 2.4% by January 2026, rebounded to 4.2% in May and stood at 3.7% in September 2026, driven by sticky services and shelter costs. Services, comprising 60% of the CPI basket, rose 3.1% annually, while shelter inflation stalled at 3.2% since December 2025. A new oil shock from the US war with Iran, which began on 28 February 2026, pushed energy prices up 23.5% in May, with petrol surging 40.5%. Core PCE, the Fed's target, hit 3.1% in September, its highest since May. Wage growth cooled to 3.0%, below inflation, and tariffs added further pressure. Household inflation expectations remained elevated at 4.7%.

A new Federal Reserve forecast indicates that Trumpflation is worsening, driven by President Trump's tariffs and the Iran war. The New York Fed reports tariffs have boosted goods price inflation by 2.9 percentage points as of February 2026. The Iran war's closure of the Strait of Hormuz has disrupted 20 million barrels of daily petroleum flows, raising gas and diesel prices. The Cleveland Fed's October update shows headline inflation at 3.75%, but core PCE—the Fed's preferred gauge—is rising, forecast to hit 3.13% in October after three months at 3%. This suggests Iran-war-driven inflation is spreading beyond energy into the broader economy, potentially prompting more aggressive Fed rate hikes, a risk for a historically expensive stock market.

President Donald Trump announced Friday he will impose 100% tariffs on Chinese imports starting November 1, escalating trade tensions after China threatened large-scale export controls on rare-earth minerals and other products. The announcement followed a stock sell-off triggered by Trump's earlier threat to cancel his upcoming meeting with Chinese President Xi Jinping at APEC in South Korea. The Dow fell 385 points, the S&P 500 dropped 1.25%, and the Nasdaq declined 1.75%. Trump also said the U.S. would impose export controls on critical software. The trade truce between the U.S. and China, which set tariffs at 30%, is set to expire in less than a month.