1. A number of Fed officials spoke, releasing hawkish signals that once raised expectations for a rate hike.
2. But Powell Friday a hammer, hinting that interest rate hikes can be suspended, market expectations then fell back.
3. Debt ceiling crisis negotiations with a series of twists and turns. House President McCarthy and Biden said they would not default, but what was said to be a weekend agreement turned out to be a breakdown, leading to a breakthrough before the market opened on Monday to appease the market's hopes dashed and negotiations dragged into this week. The U.S. Biden and McCarthy will meet later Monday to continue negotiations.
4. Sunday's G7 communiqué said they would support Ukraine and called on China to urge Russia to immediately stop its military aggression, while noting that it would be in the global interest for China to play by international rules, and that the G7 is not seeking policies designed to hurt China or hinder its economic development, not seeking to "decoupling nor turning inwards ". In addition, U.S. President Joe Biden said over the weekend that the G7 should open a hotline with China now that relations with China are expected to improve "soon" after a dispute over alleged spy balloons derailed relations between the two countries earlier this year. The Chinese side expressed strong dissatisfaction with the communiqué, and the Chinese Embassy in Britain urged the G7 to abandon the Cold War mentality and stop interfering in the internal affairs of other countries.
5. On the stock front, Tesla held its shareholder meeting last week, where Musk hinted at two new vehicles and agreed to test advertising. Home Depot reports weakness across the board, Walmart reports continued consumer strength, Target reports moderate results, business restructuring is beginning to bear fruit. Netflix ad version surpasses 5 million monthly subscribers, shares soar. Meta announces AI chip. The Japanese government reached an agreement with Micron to provide financial assistance for the manufacture of next-generation memory chips.