Tech Boom and Climate Policy Shifts: Navigating Market Heights

Global stock markets are climbing to record highs, largely buoyed by the resilient tech sector. However, shifts in U.S. climate policy could present challenges, especially for ESG investors. The upcoming reversal of the Obama-era endangerment finding by the Trump administration signals a significant deregulation move.

This week, the markets anticipate crucial U.S. economic reports, including retail sales, delayed payroll data, and inflation figures. The weakening dollar, reflecting pre-release uncertainty, is also drawing attention. White House economic adviser Kevin Hassett has noted potential impacts on job growth due to immigration policies and AI-driven productivity gains.

Additionally, Fed funds futures suggest the Federal Reserve may hold interest rates until June. Fed Governor Stephen Miran contends that trade tariffs have not been as harmful as predicted, advocating for rate cuts. The MSCI All-Country World Index recently surged, paralleling the upward trajectory of Japan's Nikkei 225, following Prime Minister Sanae Takaichi's election win.