Global Stocks, US Futures Hit New Record Highs As Google Earnings Boost AI Theme

Global stocks reached fresh record highs on the prospect of more trade deals with the US, easing fears of a drawn-out tariff war. US equity futures were also higher, led by tech stocks, while small caps were lower after yesterday's outperformance. Alphabet's strong demand for its AI products boosted sentiment, but Tesla's revenue decline sent its shares down 6%. Cyclicals were stronger in pre-market trading, led by Industrials, while bond yields were little changed. Commodities were also higher, led by Ags/Energy, with weakness in Base and Precious metals. Today's macro data focus is on Flash PMIs, Jobless Claims, Home Sales, and regional Fed activity indicators. In earnings news, several companies reported strong results, including ASGN, Blackstone, and ServiceNow, while others, such as American Airlines and Dow, disappointed. In Europe, the Stoxx 600 index was trading up 0.4% on upbeat earnings and reports of a US-EU trade deal. The European Central Bank is set to leave interest rates untouched for the first time in over a year, awaiting clarity on the impact of President Trump's trade levies on inflation.