US President Sets New 10-Day Deadline for Russia-Ukraine Peace Talks, Imposes Higher Global Tariffs, Hedge Funds Dump US TMT Stocks

In a significant move, the United States President has announced a new deadline for Russia to reach a peace agreement with Ukraine, reducing the previous 12-day window to just 10 or 12 days. This decision comes as a means to exert further pressure on Moscow to end the ongoing conflict. The President expressed disappointment with Russian President Vladimir Putin's disregard for previous ceasefire calls, stating that there is no reason to delay the announcement of the new deadline.

Additionally, the President has declared a new global benchmark tariff ranging from 15% to 20% on imports from countries that have not individually negotiated trade agreements with the United States. This tariff rate is higher than the previously announced 10% benchmark tariff in April, which could impact smaller nations hoping for a tariff rate closer to 10%. The President made these remarks during a meeting with the British Prime Minister in Scotland, emphasizing the importance of these tariffs in maintaining a friendly global trade environment.

In related news, hedge funds have been rapidly reducing their exposure to U.S. technology, media, and telecommunications (TMT) stocks. According to a report from a major brokerage firm, hedge funds have been selling off their long positions in these sectors at an accelerated pace, surpassing the rate of short covering. This trend is particularly notable in sub-sectors such as semiconductors and semiconductor equipment, software, IT services, and media stocks. The report highlights that the net exposure to the semiconductor and semiconductor equipment sector remains near a five-year high, while the software and services sector is near a five-year low. This shift in investment strategy comes as the tech earnings season reaches its peak, with major companies like Amazon, Apple, Meta Platforms Inc., and Microsoft set to release their earnings reports this week.