US, Asian Stocks Near Record Highs Amid RBA Rate Cut, US-China Tariff Truce

U.S. stock markets have remained near record highs amid growing expectations of Federal Reserve interest rate cuts later in 2025, even as investors brace for upcoming inflation data. The Dow Jones, S&P 500, and Nasdaq showed mixed performances with tech stocks like Nvidia and Microsoft generally leading gains, despite some pressure on semiconductor shares due to controversial revenue-sharing mandates with the government. Inflation concerns persist ahead of key Consumer Price Index reports, which could influence the Fed's September rate decisions, while geopolitical tensions and tariff negotiations between the U.S. and China continue to affect market sentiment. Meme stocks such as AMC and GameStop maintain some investor interest despite a general shift toward quality stocks and sectors like utilities and energy, with analysts highlighting a cautious rotation away from pure-play AI companies after significant earnings disappointments. The deployment of the National Guard in Washington and federal control over local police have added to domestic tensions, contributing to some market unease. Globally, Asian markets performed well, buoyed by extended U.S.-China tariff truces, while European markets were mixed ahead of U.S. inflation data.