US June factory orders -0.3% vs +0.2% expectedJOLTs job openings 7.359M vs 7.400M estimate. Lower than last month.Rubio: There's been progress on reopening Strait. Nothing final but hoping agreement will happen very shortlyCanadian manufacturing PMI hits a four-year highFed's Paulson: For me, the vote was not a close callCanada June trade balance +3.86B vs +3.0B expectedUS International Trade balance for June -$73.3B vs -$73.0B estimateFed's Paulson: Underlying inflation is too highAl Arabiya: expects an announcement on the reopening of the Strait of HormuzIran may allow Europe to clear mines in the Strait of HormuzUS State Dept: Latest Lebanon-Israel talks began today and will continue through Aug 6Markets:Gold up $27 to $4080US 10-year yields down 5.7 bps to 4.63%WTI crude oil down $4.61 to $75.73AUD leads, JPY lagsS&P 500 up 2.0%Nasdaq Comp up 2.8%It's been the perfect storm for stock markets this week and it was on full display on Tuesday with some huge gains, led by AI chip names. What's driving it:The collapse of Situational Awareness has given the all-clear on the 'bottom'Mag7 earnings are over and they were convincing enough that there will be a positive ROI on the AI capex, with no slowdown comingChipmaker earnings this week are going to be impressiveTACO time on Iran with non-stop talk of a deal and the oil market believing itFOMO with no identifiable risks until the Sept FOMCThe market is showing no fear with AMD up 8% ahead of earnings today. On the macro side, the numbers were fine today and the market doesn't seem to care that the bottom of the K-shape isn't improving, as McDonald's earnings showed today. It's an AI boom and it's morphing (or has already morphed) into an AI mania. Numbers from Caterpillar today showed the wealth is spreading somewhat and the market is confident there is more to come.In FX, the market isn't sure what to do about the US intervening in USD/JPY but the dip buying continued despite comments from Bessent. In terms of oil, it was down big again today as the Hormuz headlines came from a variety of sources. It's a tough deal to make though and some skepticism is certainly warranted given the backdrop. This article was written by Adam Button at investinglive.com.