US Stock Market Poised for Strongest Start Since Reagan Era

Equity markets are nearing record highs, with the S&P 500 gaining 2% this week. The optimism stems from President Trump's economic policies and softer stance on China tariffs.

Despite concerns over tariffs and interest rates, analysts anticipate any dips as buying opportunities. Consumer sentiment has declined slightly, but the economy remains strong.

Market Highlights:

* S&P 500: Little change
* Nasdaq 100: Down 0.1%
* Dow Jones Industrial Average: Down 0.3%
* Bloomberg "Magnificent Seven" Index: Fluctuating
* Russell 2000: Unchanged

Corporate News:

* Meta Platforms plans to invest $65 billion in artificial intelligence projects in 2025.
* Cryptocurrency-linked firms surge after Trump's executive order.
* Menthol cigarette ban withdrawn, boosting tobacco stocks.

Fixed Income:

* 10-year Treasury yield falls three basis points to 4.61%.
* Bloomberg Dollar Spot Index declines 0.7%.

Commodities:

* Oil set for first weekly decline this year.
* Trump calls for lower oil prices.
* Russian President Putin open to energy talks with Trump.

Fed Outlook:

* Fed expected to keep rates steady until inflation falls.
* Money markets and economists anticipate two quarter-point cuts by year-end.

Earnings Season:

* Four "Magnificent Seven" companies expected to report slower quarterly sales due to consumer sentiment and currency headwinds.
* Tesla and Microsoft expected to see improved sales momentum later this year.

Other Highlights:

* Verizon reports strong financial results, exceeding analysts' estimates.
* American Express profits rise 12% as consumers spend more.
* Texas Instruments disappoints with earnings forecast.
* Boeing faces continued challenges and losses.
* Novo Nordisk's experimental obesity drug shows promise.