AM Markets Need to Know: World Bank lifts Asia growth view, Treasury risks, and more

Stock index futures were higher on Tuesday, a day after the Nasdaq Composite touched a record high while investors looked ahead to trade data and comments from Federal Reserve officials.

Here are the five news items investors should watch:

World Bank lifts East Asia growth forecast: The World Bank raised its 2026 growth forecast for East Asia and the Pacific to 4.5%, up 0.3 percentage points from its prior estimate, citing strong global demand for AI-related hardware. The region's semiconductor, data-center component, and electronics producers are benefiting from the AI investment cycle. Growth is expected to moderate to 4.4% over 2026–2028.

Treasury demand faces foreign-creditor risks: Billionaire investor Ray Dalio warned that reduced demand for U.S. government debt from China and Japan could pressure the Treasury market. Dalio said the U.S. depends on foreign capital for about one-third of its debt, while geopolitical tensions and Japan's desire to reduce its exposure could weaken demand. The outlook adds to concerns about Treasury financing conditions.

Nokia CEO sees no sign of AI buildout slowing: Nokia (NOK) CEO Justin Hotard said data-center construction could advance twice as quickly if supply constraints were eased. Speaking to CNBC, Hotard said customers would likely accelerate construction if they could, arguing that the infrastructure buildout remains in its early stages. His comments underscore persistent demand for AI capacity despite debate over spending levels.

New York declares emergency over measles outbreak: New York Gov. Kathy Hochul declared a statewide disaster emergency as the state reported more than 100 measles cases. The order expands vaccine administration to paramedics, advanced EMS providers, pharmacists, and midwives, while allowing nurses to order testing. The measures aim to increase vaccination and testing capacity during the outbreak.

Real estate hits record low versus S&P 500: The iShares U.S. Real Estate ETF (IYR) has fallen to its lowest level relative to the SPDR S&P 500 ETF Trust (SPY), according to Creative Planning's Charlie Bilello. The IYR-to-SPY total-return ratio reached 0.122, its lowest level in data going back to around 2000. The decline has erased real estate's relative gains from the early-to-mid-2000s housing boom.