• New orders for U.S.-manufactured capital goods, a key leading indicator of investment, surprisingly fell 0.7% in June, evidencing a retreat in business investment in equipment. The decline suggests that the transitory boost from front-loading activity ahead of import tariffs is fading, and ongoing uncertainty surrounding future tariff rates is causing business companies to delay capital expenditures.

• Under technology news, Tesla is reportedly set to launch its robotaxi service in San Francisco as early as this weekend, with a leaked internal memo indicating a fast-tracked schedule. CEO Elon Musk has emphasized the shift to robots and autonomous taxis amid falling sales of Tesla’s existing vehicle range.

• While this is happening, Bank of America Corp. strategists are warning of increasing likelihood of a stock market bubble. They attribute this to loose monetary policy, with global policy rates set to fall further, and potential ease in financial regulations to attract retail investor participation. The strategists, led by Michael Hartnett, observe that “Bigger retail, bigger liquidity, bigger volatility, bigger bubble.”

• Despite concerns that a bubble was developing and the decline in US orders for capital goods, global equity funds were treated to a reversal of outflows during the week ended July 23. Market participants put a net $8.71 billion into stock funds, overturning an initial withdrawal, fueled by enthusiasm about US trade deals, better-than-expected US economic data, and a resounding start to the corporate earnings season.