Optimism increased in global markets following the deferral and exemption decisions regarding the U.S. trade tariffs. While steps taken by the U.S. under its protectionist trade policy continue to be at the forefront of investors’ focus, news flow related to countries’ negotiation efforts is being closely monitored. The increased risk appetite after the announcement that reciprocal tariffs would not be applied to semiconductors and some technology products continues to influence market direction. Yesterday, U.S. President Donald Trump stated in remarks that they will soon announce sectoral tariffs on pharmaceuticals, indicating their desire to bring pharmaceutical production back to the country. Trump mentioned that his opinion on tariffs would not change, but he could be flexible and did not want to hurt anyone. Kevin Hassett, Director of the White House National Economic Council, also pointed out that they have received very good trade deal offers, expressing that the U.S. will definitely not enter a recession this year. While monitoring comments from Federal Reserve (Fed) officials, Fed Board Member Christopher Waller explained that if businesses quickly and completely pass on tariff costs, inflation could approach 5 percent in the coming months. Waller noted that he believed the risk of recession would outweigh the risk of inflation. TECHNOLOGY STOCKS IN POSITIVE TERRITORY Analysts mentioned that the exemption of certain technology products from reciprocal tariffs is a significant gain for major technology companies, but uncertainty still persists. Following these developments, Apple’s shares rose by 2.2 percent, Alphabet’s shares by 1.3 percent, Meta’s shares dropped by 1.2 percent, and Amazon’s shares decreased by 1.5 percent. PREPARATIONS FOR EXEMPTIONS IN AUTOMOTIVE After Trump mentioned that automakers needed “a little time” to move their production to the U.S. and expressed his willingness to assist automobile companies, the movement in the shares of companies operating in this sector also attracted attention. Following the statements, Ford Motor’s shares rose by 4 percent, General Motors’ shares by 3.5 percent, and Stellantis’ shares by 5.6 percent. FIRST CONTACT BETWEEN EUROPE AND U.S. European stock markets closed positively yesterday with increased risk appetite parallel to negotiation optimism, and the first contact for negotiations between the European Union (EU) and the U.S. took place. Maros Sefcovic, EU Commissioner responsible for Trade, who is in the U.S. for tariff-related discussions, met with U.S. Trade Minister Howard Lutnick and U.S. Trade Representative Jamieson Greer. Emphasizing that the EU remains ready for a constructive and fair agreement, which includes a mutual zero tariff proposal for industrial goods and working on non-tariff barriers, Sefcovic stated that both sides need to make efforts for this to be achieved. FEAR INDEX DECLINES, STOCK MARKETS RISE Following the latest developments regarding tariffs, the “fear index” known as the VIX Index, showing the volatility in the S&P 500 Index, decreased by around 17.8 percent to 30.9. Yesterday, in the New York Stock Exchange, the Nasdaq index gained 0.64 percent, the S&P 500 index increased by 0.79 percent, and the Dow Jones index rose by 0.78 percent. Index futures in the U.S. started with a new decline. Yesterday, the FTSE 100 index in the UK rose by 2.14 percent, the DAX 40 in Germany by 2.85 percent, the CAC 40 in France by 2.37 percent, and the FTSE MIB 30 in Italy by 2.88 percent. Index futures in Europe started the new day on a positive note. While the Nikkei 225 index in Japan rose by 1.1 percent, the Kospi index in South Korea by 1 percent, and the Hang Seng index in Hong Kong by 0.1 percent, the Shanghai Composite index in China dropped by 0.3 percent. DEMAND FOR SAFE HAVENS PERSISTS While U.S. 10-year bonds showed a buying-weighted performance yesterday, 10-year bond yields are currently stabilized at 4.36 percent with an 11 basis point decrease. The dollar index is trading at 99.7 levels with a 0.2 percent decrease. The price of one ounce of gold ended yesterday with a 0.9 percent decrease at $3,210, and it is currently trading at $3,228 with a 0.5 percent increase in the new day. The barrel price of Brent crude oil is currently at $64.6 with a 0.1 percent gain.