Morning Bid: Markets long for peace, prepare for Warsh

• Iran said it would skip a second round of talks after the U.S. seized a cargo ship, though a senior official later indicated delegates may still attend expected negotiations in Islamabad
• Kevin Warsh's confirmation hearing begins at 10 a.m. EDT Tuesday, where he will state his commitment to ensuring monetary policy 'remains strictly independent' from political influence
• AI investments are surging with Amazon announcing up to $25 billion in spending, pushing South Korea's Kospi and Taiwan's tech stocks to record highs while Asian markets rose 0.9%

Market Summary: Morning Bid - Markets Long for Peace, Prepare for Warsh

Key Developments:

Markets remain tentative as a U.S.-Iran ceasefire deadline approaches, though investors are pivoting toward AI-linked stocks amid expectations of renewed growth. Iran initially said it would skip a second round of negotiations after the U.S. seized an Iranian cargo ship, but a senior official later indicated delegates may still attend talks expected in Islamabad. Vice President JD Vance's travel plans remain unclear, adding to geopolitical uncertainty.

Federal Reserve Focus:

Kevin Warsh, President Trump's Fed chair nominee, begins Senate confirmation hearings Tuesday at 10 a.m. EDT. His independence from the White House is expected to be scrutinized, though prepared remarks show Warsh will commit to keeping monetary policy "strictly independent."

Market Performance:

AI-sector enthusiasm drove significant gains following Amazon's announcement of up to $25 billion in investments. South Korea's Kospi reached a record high—its first since the Iran conflict began. Taiwan tech stocks, SoftBank, and SK Hynix also hit all-time highs.

Victory Giant Technology surged 60% in its Hong Kong debut after raising HK$20.1 billion ($2.6 billion) in the city's largest IPO in over six months.

S&P 500 e-mini futures rose 0.1%, while MSCI's Asia-Pacific index gained 0.9%. European markets pointed to a firmer open with pan-region futures up 0.3%.

Upcoming Catalysts:

• Earnings: GE Aerospace, UnitedHealth Group, RTX Corp, Associated British Foods
• Economic data: UK unemployment, German ZEW sentiment
• Debt auctions: Germany (2-year), UK (3-year)