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Futures Slip as Geopolitical Tensions Overshadow Strong Bank Earnings

  US stock futures edged lower as investors balanced upbeat bank earnings against rising geopolitical unease tied to escalating tensions involving Iran. Contracts tied to the Dow, S&P 500, and Nasdaq all traded in the red, signaling a cautious start to the trading day. Major banks delivered solid quarterly results, with strong trading revenue and resilient consumer activity helping lift sentiment in the financial sector. Yet the optimism was tempered by concerns that potential US responses to developments in Iran could inject fresh volatility into global markets. Energy prices climbed as traders braced for possible disruptions. The pullback comes at a moment when investors are already navigating a crowded landscape of economic data, inflation readings, and policy uncertainty. With markets on edge, even strong corporate performance wasn’t enough to counter the broader risk-off mood.

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Tariffs, Trade & Ties: Modi’s Diplomatic ‘Gift’ to Trump

Indian Prime Minister Narendra Modi arrived in Washington with a well-calculated strategy aimed at strengthening the U.S.-India relationship while averting new tariff threats from the Trump administration. In a visit marked by a series of high-level meetings, Modi is expected to offer concessions ranging from increased purchases of U.S. defense equipment—including combat vehicles and jet engines—to greater imports of liquefied natural gas and American agricultural products.

The Indian leader’s visit comes at a critical juncture. Trump, still in the early days of his presidency, has been vocally critical of India’s high tariffs—often branding the country as a “tariff king”—and has indicated plans for reciprocal measures that could affect American consumers and global trade balances. In response, New Delhi has made adjustments, reducing duties on select goods such as Harley-Davidson motorcycles and opening doors to deeper negotiations on key sectors like electronics, medical supplies, and chemicals.

Both leaders appear to be leveraging their established rapport—built during Modi’s previous interactions in Washington—to navigate these contentious issues. While Trump is looking to reshape trade dynamics and bolster U.S. economic interests, Modi’s visit is equally focused on cementing a strategic partnership that balances economic imperatives with broader geopolitical concerns, especially in countering China’s influence in the Indo-Pacific region.

This diplomatic engagement highlights the complex interplay of trade, tariff negotiations, and strategic alliances at a time when both nations are seeking to recalibrate their relationship amidst global economic uncertainties.


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