Investor attention also remained on Senate discussions surrounding Trump’s expansive tax and spending plan, which is likely to face substantial revisions. Meanwhile, minutes from the latest FOMC meeting revealed that Fed officials are maintaining a cautious, data-dependent approach. Policymakers acknowledged heightened risks of both inflation and unemployment, citing the unexpected size and scope of the proposed tariff hikes. They described the current level of trade policy uncertainty as unusually high, warning of increased downside risks to growth and employment, and upside risks to inflation.

The Fed agreed that, with a strong labor market and moderately restrictive policy already in place, it remains in a good position to wait for clearer inflation and economic signals. Officials emphasized the need for caution with growing uncertainty over government policy shifts.

In Europe, the 10-year German Bund yield edged up to around 2.59%, mirroring the global uptick in borrowing costs. The US court ruling helped ease fears of an escalating trade war and lifted investor risk appetite. Earlier this week, following a call with European Commission President Ursula von der Leyen, Trump delayed a 50% tariff on EU goods to July 9. Under the reciprocal tariff policy rolled out in April, the EU faced a 20% tariff, temporarily lowered to 10%.

On monetary policy, the European Central Bank is expected to deliver a rate cut at its June meeting, likely followed by a pause in further easing.

Check out today's analysis for more information.