India and U.S. strike a trade deal, and markets shrug off precious metals rout

In a significant development, the United States has reached a trade agreement with India, marking a notable diplomatic step between the two nations. President Donald Trump announced that the U.S. will reduce reciprocal tariffs on Indian imports to 18%, down from 25%. This deal mandates India to increase its purchases of American goods and shift its oil imports from Russia to the U.S. and potentially Venezuela, as outlined by Trump. Despite this promising trade news, the U.S. tourism sector appears to be struggling, particularly for major attractions like Disney theme parks, which reported a decline in international visitor numbers. This downturn led to a 7.4% drop in Disney's shares following its recent earnings report. On the stock market front, major U.S. indexes displayed resilience, with the S&P 500 rising by 0.54% and the Dow Jones Industrial Average increasing by 1.05%. This uptick occurred despite Nvidia's 2.9% decline amid concerns over its stalling $100 billion investment in OpenAI, while the tech-heavy Nasdaq Composite managed a 0.56% gain. In other economic news, the Reserve Bank of Australia is anticipated to make a pivotal interest rate decision today, with expectations of a rate hike driven by unexpectedly high inflation and a strong labor market. In corporate developments, Elon Musk announced that SpaceX will acquire the startup xAI, with plans for a substantial IPO valued at approximately $1.25 trillion, according to Bloomberg. Meanwhile, Oracle's credit default swaps saw a significant drop of 17%, buoyed by the company's announcement of a $50 billion fundraising plan. In cryptocurrency, Bitcoin has experienced a downturn, plummeting about 12% over the past week and dipping below $80,000 for the first time since April 2025, attributed to forced liquidations. Despite these challenges, U.S. stocks rose, although gold and silver prices continued to decline. In a lighter note from China, a quirky toy known as the 'crying horse' has become a sensation, symbolizing the anxieties of Chinese consumers amidst economic concerns. Additionally, the viral app 'Are You Dead?' aimed at reassuring lonely individuals has met its own fate, reflecting the unique cultural landscape in the region.