U.S.–Russia Summit Looms, Markets Hold Their Breath

Market Overview

U.S. producer price index (PPI) data released yesterday came in unexpectedly strong, dampening market expectations for Federal Reserve rate cuts and curbing Wall Streets recent rally. The Nasdaq and Dow Jones Industrial Average closed marginally lower, while the S&P 500 eked out a modest gain, managing to notch a record close despite choppy trade. In response, the rate-sensitive two-year Treasury yield reversed earlier declines, and the U.S. dollar index rebounded from a two-week low.

Bitcoin surged past $124,000 to a fresh all-time high before pulling back more than $7,000 from its peak in a bout of sharp volatility. Gold came under pressure, retreating to its lowest level in nearly two weeks. Ahead of todays U.S.–Russia “Trump–Putin” summit, bullish sentiment in energy markets lifted WTI crude prices by more than 2% intraday.

Hot Topics to Watch

Trump–Putin Summit Begins at 3:30 a.m. ET Friday

The meeting will take place at a U.S. military base in Alaska. President Vladimir Putin and President Donald Trump will first hold a one-on-one session with interpreters, followed by an expanded “5-on-5” format with senior delegations. Discussions are expected to cover bilateral economic cooperation and global security issues. The two leaders will hold a joint press conference following the talks.

U.S. Government Weighs Intel Stake Purchase

The Trump administration is in talks with Intel about a potential government equity investment to support the company‘s stalled Ohio semiconductor fabrication project. News of the discussions sent Intel shares up nearly 9% during Thursday’s session, with an additional 3.6% gain in after-hours trading. Analysts note the move could bolster Intels financial position and signals CEO Lip-Bu Tan may remain in place.

Key Data Watch(GMT+8)

08:30 ET – U.S. July Retail Sales (MoM), August New York Fed Manufacturing Index, July Import Price Index (MoM)

09:15 ET – U.S. July Industrial Production (MoM)

10:00 ET – U.S. August 1-Year Inflation Expectations (Prelim), June Business Inventories (MoM), August University of Michigan Consumer Sentiment Index (Prelim)

Overnight

03:30 ET – U.S. President Donald Trump and Russian President Vladimir Putin meet in Alaska