Major indices are all in the green and jumped to highs of the day after comments from EU diplomats. They indicated the US and EU are heading for a potential 15% baseline tariff on EU goods, and a possible reduction of product specific tariffs.

On Main Street, the Trump Administration unveiled parts of its AI (Artificial Intelligence) Action Plan designed to cement the USA as the leader in AI. The plan has three central pillars: accelerate innovation, build out AI infrastructure, and make American-made hardware and software the standard platforms for AI. They aim to achieve these through deregulation, streamlining data center and semiconductor fabrication, eliminating AI political bias, facilitating AI export packages, and expanding investment. Further comments on the plan are expected by Trump during this evening’s AI summit called “Winning the AI Race”.

Notably, this will also include rolling back some of Biden’s era chip export restrictions, such as Nvidia’s (NVDA) H20 chips to China.

The only sector in the red is Utilities (XLU), which has been driven lower by Nextera Energy (NEE), which reported quarterly results that missed revenue estimates. On the flip side, Industrials (XLI) is leading after several favorable earnings releases including GE Vernova (GEV), Lennox International (LII), and General Dynamics (GD).

The Magnificent Seven are split overall between green and red ahead of Tesla (TSLA) and Alphabet (GOOG/L) earnings releases after the bell today.

The Street remains cautious on Tesla (TSLA) as it navigates a more challenging environment driven by strong competition, declining revenue, and CEO Elon Musk’s political ventures. Historically, the stock has gapped up in the last three earnings’ releases.

Google (GOOG/L) has faced ongoing challenges from AI, as it reshapes traditional search dynamics. Investors will be closely watching how the company diversifies its revenues streams while navigating AI. Historically the reaction has been mixed as the Street expects more from the company.

Existing Home Sales fell 2.7% M/M to a seasonally adjusted annual rate of 3.93M in June and came in below expectations of 4.01M.

The 20-year bond auction saw solid demand. The high yield came in at 4.935%, just 1.6 bps below then when-issued level of 4.951%. Bid-to-cover was strong at 2.79, and indirect bidders (including foreign buyers) took 67.43% while direct bidders took 21.86%.