NATO Summit Spurs Global Market Shifts

Defense spending pledges and Fed policy loom over markets

TL;DR:

• 🛡️ NATO nations commit to higher defense spending
• 👟 Nike earnings and guidance in focus
• 🏛️ Powell’s testimony to shape Fed outlook
• 🏠 U.S. new home sales data due

🛡️ NATO Nations Commit to Higher Defense Spending

The 2025 NATO Summit in The Hague concluded with member countries pledging to increase defense spending to five percent of GDP. This historic commitment is expected to drive fresh capital flows into the defense sector, supporting equities in aerospace and military contractors. Markets are watching for follow-through spending and potential geopolitical ripple effects. Source

👟 Nike Earnings and Guidance in Focus

Nike Inc. is scheduled to report Q2 earnings after the bell today. Investors are closely tracking the report for signals on consumer demand, supply chain health, and management’s outlook for the second half of 2025. Market volatility is expected around the release, with options pricing in a notable move. Source

🏛️ Powell’s Testimony to Shape Fed Outlook

Federal Reserve Chair Jerome Powell will deliver his semi-annual testimony before Congress today, providing critical insight into the central bank’s economic and rate-setting outlook. Traders are bracing for volatility in rates, equities, and the dollar as markets look for clues on inflation, labor, and policy direction. Source

🏠 U.S. New Home Sales Data Due

The U.S. Census Bureau is set to release May new home sales data at 10:00 AM ET. This release is a key gauge of housing market momentum and consumer confidence, likely to influence real estate, homebuilder stocks, and mortgage-sensitive sectors. Source