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S&P 500 index-fund investors are locked into a big bet that AI capital expenditures will pay off.

Concerns around trade tensions, tariff threats, and broader geopolitical friction triggered renewed discussion of a potential “Sell America” trade, pushing investors to reassess geographic exposure across equity portfolios. Many investors diversified portfolios away from U.S. equities amid rising uncertainty.

What matters in U.S. and global markets today

Richard Bernstein says investors are ignoring a whole bunch of high-earning companies for the sake of a few tech giants.

As a group, the Magnificent Seven are expected to report earnings growth of 20.3% for the fourth quarter.

Hedging Against U.S. Trade Volatility

Plus, health insurers getting slammed

On Monday night, the Centers for Medicare & Medicaid Services outlined a proposal to raise Medicare Advantage payment rates by 0.09% in 2027. This is well below analysts' expectations of between a 4-6% increase, according to the Wall Street Journal.

MRB Partners published a report that contradicts the belief that AI is the main driver of GDP. Personal consumption remained the main GDP driver of 2025, not AI growth.

The European Union and India on Tuesday signed a landmark trade deal, one that includes reducing tariffs on imports of EU-made cars to 10% from as high as 110%. It represents the biggest opening yet of India's vast car market to European original equipment manufacturers.

US President Donald Trump has made housing affordability a centrepiece of his economic agenda, recently announcing policies designed to increase homeownership. From restricting institutional investors from buying residential properties to urging “Fannie Mae” and “Freddie Mac” to buy billions in mortgage-backed securities, the administration has leaned on aggressive measures to ease costs.

Canada's dormant market for initial public offerings is poised for revival in 2026, signaling renewed economic confidence that could help reverse a years-long corporate exodus from the country's main stock exchange and validate the government's pro-business agenda.

Officials, who are meeting this week, are divided over when the inflation data will justify further reductions.

The Federal Reserve is expected to hold interest rates steady on Wednesday, despite relentless attacks from President Trump over borrowing costs.

Fed expected to hold interest rates steady amid stubborn inflation and disappointing jobs numbers. Powell is facing a DOJ investigation and rising political pressure from the White House.

Indian Prime Minister Narendra Modi hails a ‘big agreement' struck with Brussels while European Commission President Ursula Von Der Leyen says the deal removes almost all trade barriers with a new a free trade zone of 2bn people. President Trump has increased tariffs on South Korean autos and other goods to 25 per cent.

Annual Private Equity Insights And Outlook: Deals Regain Momentum

The CNN Money Fear and Greed index showed an improvement in the overall market sentiment, while the index remained in the “Neutral” zone on Monday.

Anna Edwards, Guy Johnson, Tom Mackenzie and Mark Cudmore break down today's key themes for analysts and investors on "Bloomberg: The Opening Trade." Chapters: 00:00:03 - Gold and Silver Prices Moves 00:01:19 - 'TACO' Tuesday 00:01:39 - Trump 25% Tariffs on Korea 00:02:57 - AI Stocks -------- More on Bloomberg Television and Markets Like this video?

EU and India strike trade deal; U.S. health-insurer stocks fall offhours