In a significant development for international trade, U.S. President Donald Trump has announced a reduction in reciprocal tariffs on Indian imports from 25% to 18%. This move is part of a broader agreement between the United States and India, designed to enhance bilateral trade relations. The deal, which was revealed during a joint press conference between Trump and Indian Prime Minister Narendra Modi at the White House, includes a commitment from India to significantly increase its procurements from the U.S. Additionally, New Delhi is expected to stop sourcing oil from Russia and redirect its imports toward the United States and potentially Venezuela.
While the trade agreement signifies a strengthening of economic ties between the two nations, it comes amid challenges for U.S. businesses. Disney reported a decline in international visitors to its theme parks during the fiscal first quarter, describing the situation as “softer” and facing various headwinds. Following the earnings report, Disney’s shares plummeted by 7.4%. Despite this setback for Disney, major U.S. stock indexes rebounded, with the S&P 500 rising by 0.54% and the Dow Jones Industrial Average increasing by 1.05%. The technology-focused Nasdaq Composite also saw gains, rising by 0.56%, even as Nvidia’s stock dipped by 2.9% amid news that a significant investment in OpenAI has encountered delays.
Globally, the economic landscape remains mixed, with the Reserve Bank of Australia set to announce its interest rate decision. Analysts are predicting an increase in rates due to unexpectedly high inflation and a strong labor market, marking a potential divergence from the trend of other central banks pursuing easier monetary policies.
In other industry news, SpaceX has made headlines with its acquisition of startup xAI, as announced by Elon Musk. This merger positions the combined company for a significant initial public offering (IPO), with estimates valuing it at around $1.25 trillion. Investor sentiment towards Oracle has improved substantially as well, with the company’s credit default swaps experiencing a notable decline following its announcement of a plan to raise $50 billion in new debt and equity.
On the crypto front, bitcoin has faced considerable pressure, dropping about 12% over the past week and dipping below $80,000 for the first time since April 2025. This decline is attributed in part to forced liquidations in the market. Meanwhile, traditional U.S. stocks have continued their upward trajectory as spot gold and silver extend their losses during U.S. trading.
In another area of innovation, Tesla is reportedly converting a factory in California to produce its Optimus robots, while rivals in China are ramping up production of humanoid robots, a trend noted by analysts at Morgan Stanley who believe these advancements will benefit the sector as it grows.
Conversely, consumer sentiment in China appears to be waning, as evidenced by peculiar trends such as the popularity of a plush “crying horse,” which has gained traction due to an accidental design flaw. This reflects a broader anxiety in China regarding deflation and economic uncertainty, starkly contrasting American concerns about inflation. As a sign of the times, a viral app, “Are You Dead?”, originally designed to provide assurance for those living alone, has drawn attention amidst these economic worries.
