Macro Events & News
Markets finished the week higher despite new trade announcements that are likely to add inflationary pressure. Several retail favorites delivered earnings beats and were rewarded, including Palantir (NASDAQ:PLTR), Shopify (NASDAQ:SHOP), and Applovin (NASDAQ:APP). Advanced Micro Devices (NASDAQ:AMD) posted mixed results—earnings failed to impress, but the stock gained after being exempted from additional tariffs and noting China sales potential not yet reflected in its already-strong guidance.
Apple announced an additional $100 billion investment in U.S. manufacturing — on top of a previously stated $500 billion — effectively ensuring exemption from newly announced 100% tariffs on semiconductors. The move follows a broader trend of companies tossing out enormous capital pledges largely to avoid the administration’s ire, with little clarity on whether the funds will actually be deployed at that scale. Micron, for example, pledged $200 billion despite its $140 billion market cap, underscoring the performative nature of these announcements.
A new wave of global tariffs began August 7, with several countries securing preliminary agreements ahead of the deadline. Tensions rose with India after the U.S. demanded it stop purchasing Russian oil; a 50% tariff will now be levied on Indian exports to the U.S. While these measures should add to inflationary pressures, market reaction was notably more muted than in prior tariff rounds. The August 12 China trade deal deadline is approaching, and although officials have signaled a likely 90-day extension, no formal confirmation has been made.
The 10-year Treasury yield marched higher to 4.285% as auction activity was weak. The VIX retreated over the week after the initial shock from tariffs the Friday prior, closed at 15.15.
All the major indexes were higher this week: the Dow up 1.3%, the S&P 500 up 2.4%, and the Nasdaq up 3.9%.
Watchlist News
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Apple (NASDAQ:AAPL) saw a significant stock increase this past week after a meeting between CEO Tim Cook and President Trump. Cook announced an additional $100 billion commitment to U.S. manufacturing investments and presented Trump with a gold plaque. This move secured a reprieve for the company, as it faces increasing costs from the administrations tariff policy.
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GameStop Corp (NYSE:GME) continued to trade sideways this week. The company’s performance remains largely unchanged as investors await its next earnings report (scheduled for September 9) or news of a significant business acquisition.
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Intel Corporation (NYSE:INTC) was able to benefit from the new 100% tariffs on imported semiconductors, as it has committed to producing in the U.S. and likely exempt. However, the positive momentum was negatively impacted by President Trump publicly calling for the resignation of Intel’s CEO, Lip-Bu Tan. Trump accused Tan of having a “conflict of interest” due to alleged ties to Chinese companies.
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Tesla Inc (NASDAQ:TSLA) continued its recent weekly consolidation pattern, with a gain of over 2% on Friday. This was reportedly due to news that the company had secured a ride-hailing license from the Texas Department of Licensing and Regulation for its robotaxi service. This development comes as the company faces other significant changes, including reports that it has shut down its Dojo supercomputer team and that its leader, Peter Bannon, is leaving the company. The closure of the Dojo project has been viewed with mixed reactions from investors, as it was seen by some as a key component for the company’s future revenue and Full Self-Driving (FSD) capabilities.
