While Alphabet demonstrated strong Google Cloud growth, heavy AI capital expenditures, negative free cash flow, and doubling debt highlighted the sector's rising costs, contributing to a 30% unwind in crowded momentum trades across global equities.

Geopolitical risks also broadened to include trade policy, as the U.S. announced tariffs of up to 50% on Canadian imports, alongside escalating disputes with Brazil and the EU. Central banks are keeping a tight rein in response, with the ECB holding interest rates steady to evaluate energy-driven inflation risks while the BOJ and BOE prepare for upcoming policy meetings. As investors await new U.S. GDP data, PCE inflation figures, and China's Politburo meeting, global markets continue to navigate persistent trade friction and volatile commodity prices.