US stocks ended mixed on Tuesday, as markets responded to notable shifts in both fiscal and monetary policy. The S&P 500 held steady near record levels, while the Nasdaq 100 slipped 1%, dragged down by technology stocks. In contrast, the Dow Jones Industrial Average rallied 500 points, reflecting strength in more traditional sectors. Investor sentiment was shaped by two major developments: the US Senate narrowly approved President Trump’s new tax bill, projecting a $3.3 trillion budget deficit. However, concerns over the sustainability of rising federal debt may prompt pushback in the House of Representatives. At the same time, Federal Reserve Chair Jerome Powell indicated that most members of the FOMC expect interest rate cuts this year, further influencing market direction.

The FTSE/JSE All Share Index gained around 0.60%, surpassing the 97 000-point mark to set a new all-time high. It was the second consecutive day of gains, led by strength in resource-linked stocks, buoyed by rising precious metals prices, including gold. Financial stocks also contributed to the rally.

In the UK, the FTSE 100 edged slightly higher on Tuesday, building on its strong 7.20% gain over the first half of the year. Shares in AstraZeneca climbed nearly 3% following reports in The Times that CEO Pascal Soriot has privately expressed a preference to shift the company’s stock listing to the US, potentially relocating its domicile.

Meanwhile, Bank of England Governor Andrew Bailey noted that UK inflation is being driven entirely by administered prices, while also signalling some signs of softening in the economy and labour market.

European equities slipped slightly, with ongoing trade uncertainties and questions over the ECB’s rate-cutting path weighing on investor sentiment. The Eurozone STOXX 50 declined by 0.30% to 5 288, while the broader STOXX 600 eased 0.20% to 540.

There are emerging reports that the EU may be open to a trade deal involving a 10% universal tariff on a wide range of exports. However, the bloc is seeking key concessions from the US, particularly in sectors such as pharmaceuticals, alcohol, semiconductors, and commercial aircraft.

In Japan, the Nikkei 225 fell 1.24% to 39 986, while the broader Topix Index lost 0.73% to 2 832. The declines ended a five-day winning streak, as renewed trade tensions with the US dampened investor confidence. President Trump threatened fresh tariffs on Japan, criticising the country’s reluctance to import US-grown rice.

In contrast, Chinese markets saw modest gains. The Shanghai Composite rose 0.39% to 3 458, and the Shenzhen Component edged up 0.11% to 10 476. Mainland shares reached multi-month highs following a surprise rebound in manufacturing activity, boosting hopes for a stabilising Chinese economy.

In commodities, WTI crude oil futures hovered around $65.70 per barrel, with prices showing volatility ahead of OPEC+’s upcoming output decision. Meanwhile, gold extended its rally, climbing to approximately $3 330 per ounce, supported by a weaker US dollar and ongoing uncertainty around global trade negotiations.