{"id":50692,"date":"2025-07-18T10:38:35","date_gmt":"2025-07-18T14:38:35","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/global-markets-react-to-metas-eu-ai-stance-strong-us-consumer-sentiment-and-easing-inflation\/50692\/"},"modified":"2025-07-18T10:38:35","modified_gmt":"2025-07-18T14:38:35","slug":"global-markets-react-to-metas-eu-ai-stance-strong-us-consumer-sentiment-and-easing-inflation","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-metas-eu-ai-stance-strong-us-consumer-sentiment-and-easing-inflation\/50692\/","title":{"rendered":"Global Markets React to Meta&#8217;s EU AI Stance, Strong US Consumer Sentiment, and Easing Inflation"},"content":{"rendered":"<h3>Key Takeaways<\/h3>\n<ul>\n<li><strong>Meta Platforms<\/strong> (<a href=\"\/stock\/META\">META<\/a>) has notably refused to sign the EU\u2019s voluntary Code of Practice for general-purpose AI, becoming the first major tech company to decline and signaling potential friction in AI regulation.<\/li>\n<li>U.S. consumer sentiment for July <strong>surpassed expectations<\/strong>, with the University of Michigan&#39;s preliminary report showing an increase to <strong>61.8<\/strong>, which contributed to slight gains in the <strong><a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> (<a href=\"\/stock\/SPX\">SPX<\/a>) and <strong>NASDAQ<\/strong> (<a href=\"\/stock\/IXIC\">IXIC<\/a>).<\/li>\n<li>Global inflation is showing signs of easing due to <em>weak demand<\/em> and <em>lower energy rates<\/em>, while the <strong>International Monetary Fund (IMF)<\/strong> projects steady global economic growth of <strong>3.3%<\/strong> in both 2025 and 2026.<\/li>\n<li>Senior diplomats from the <strong>E3<\/strong> (France, Germany, and the UK) and <strong>Iran<\/strong> are expected to meet next week in Europe to discuss a potential nuclear deal amidst warnings of restored UN sanctions if concrete progress isn&#39;t made by summer&#39;s end.<\/li>\n<\/ul>\n<ul>\n<li>\n<p><strong>Meta Challenges EU AI Regulation:<\/strong> <strong>Meta Platforms<\/strong> (<a href=\"\/stock\/META\">META<\/a>) has emerged as the first major tech company to decline signing the European Union\u2019s voluntary Code of Practice for general-purpose AI models. This decision, announced by Meta&#39;s Chief Global Affairs Officer Joel Kaplan, cites &quot;legal uncertainties&quot; and measures that &quot;go far beyond the scope of the AI Act,&quot; setting a precedent that could impact future AI regulatory compliance in Europe. The EU&#39;s AI Act is set to begin applying on August 2, and while the code is voluntary, it serves as a benchmark for compliance.<\/p>\n<\/li>\n<li>\n<p><strong>U.S. Consumer Sentiment Beats Forecasts:<\/strong> The University of Michigan&#39;s preliminary report on U.S. consumer sentiment for July showed an unexpected rise to <strong>61.8<\/strong>, exceeding both the previous month&#39;s 60.7 and the estimated 61.4. This positive data point, alongside improved current conditions (66.8 vs. 64.8 previous) and consumer expectations (58.6 vs. 58.1 previous), contributed to slight gains in the <strong>S&amp;P 500<\/strong> (<a href=\"\/stock\/SPX\">SPX<\/a>) and <strong>NASDAQ<\/strong> (<a href=\"\/stock\/IXIC\">IXIC<\/a>). One-year inflation expectations also cooled to <strong>4.4%<\/strong> from 5.0%, though long-run expectations saw a slight uptick to 4.0% from 3.6%.<\/p>\n<\/li>\n<li>\n<p><strong>Inflationary Pressures Ease Amid Steady Global Growth Projections:<\/strong> A damper on inflation is noted due to <em>weak demand<\/em> and <em>lower energy rates<\/em>, indicating an ongoing drop despite country-specific differences. Concurrently, the <strong>International Monetary Fund (IMF)<\/strong> has projected stable global economic growth, forecasting <strong>3.3%<\/strong> for both 2025 and 2026. This outlook, while broadly unchanged from earlier forecasts, suggests resilience in the global economy despite various headwinds.<\/p>\n<\/li>\n<li>\n<p><strong>E3 and Iran to Hold Nuclear Deal Talks:<\/strong> Senior diplomats from the <strong>E3<\/strong> (Germany, France, and the UK) and <strong>Iran<\/strong> are likely to meet next week in Europe, with Vienna and Geneva being considered as potential venues, to discuss a possible nuclear deal. This comes as European powers have warned Iran that they would restore UN sanctions if Tehran fails to take concrete steps towards a &quot;verifiable and lasting&quot; nuclear deal by the end of the summer.<\/p>\n<\/li>\n<li>\n<p><strong>China Increases Oversight of EV Industry; Brazil Responds to US Tariffs:<\/strong> China plans to enhance oversight of electric vehicle (EV) prices and quality, with three government agencies tasked with overseeing competition in the rapidly growing EV industry to curb &quot;irrational competition.&quot; Meanwhile, <strong>Brazil&#39;s Supreme Court<\/strong> has stated that increased U.S. tariffs on Brazil are designed to cause a severe economic crisis, pressure Brazil&#39;s judiciary, and interfere in legal proceedings, prompting Brazil to enact a law enabling economic retaliation.<\/p>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Meta Platforms (META) has notably refused to sign the EU\u2019s voluntary Code of Practice for general-purpose AI, becoming 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