Bonds & Stocks
A rally in technology firms spurred a rebound in stocks after last week’s artificial-intelligence selloff lured buyers betting the industry’s investment boom will continue to support solid corporate earnings. The S&P 500 rose 0.8%. The yield on 10-year Treasuries was little changed at 4.37%.
Economy
The leverage that helped fuel the US stock rally is now becoming an increasing source of unease. The surge in market leverage, stemming in part from the massive growth of levered exchange-traded products, retail margin accounts and hedge fund deposits at prime brokers, is stoking worries that it may exacerbate the next crisis. The demand to borrow money has driven a mid-year spike in financing costs, which have reached the highest levels since December 2024.
World
US President Donald Trump said peace talks with Iran are set to resume Tuesday in Doha, after both sides agreed to halt a series of tit-for-tat attacks over the Strait of Hormuz. “Iran has requested a meeting,” Trump said in a post on Truth Social. “It will take place tomorrow in Doha.”