Weekly Market Update

Global Market News

Global Equities Make Gains

Global equities made gains this week after last week’s slump. The S&P 500 and Nasdaq ended the week up 0.79% and 1.55%, respectively, and the Dow Jones increased 0.10% on the week. The U.S. 10-year Treasury edged up several basis points to 4.28%, while the price of West Texas Intermediate crude oil dropped more than 7% to $63.88 per barrel despite threats from the Trump administration of secondary sanctions on buyers of Russian oil. Volatility, as measured by the CBOE Volatility Index, dropped nearly 20% over the week, closing Friday at 15.15.

Updated Market Figures

Fed Signals Rate Cuts as Trump Eyes New Chair

Three more Federal Reserve officials, Mary Daly, Neel Kashkari, and Lisa Cook, joined the chorus of voices supporting potential rate cuts due to concerns about the U.S. labor market. This follows last week’s FOMC meeting, where two governors dissented in favor of easing policy, pushing the odds of a September rate cut above 90%. Meanwhile, Adriana Kugler resigned from the Fed Board, and President Trump nominated Stephen Miran to fill her seat. Trump is also narrowing down candidates for the next Fed chair, with Kevin Warsh, Kevin Hassett, and Christopher Waller emerging as top contenders.

International Developments

Trump Raises Tariffs On India to 50%

President Trump imposed a 25% tariff hike on Indian exports, raising total duties to 50%, in retaliation for India’s continued purchases of discounted Russian oil. In response, India paused several major U.S. weapons deals and canceled Defense Minister Rajnath Singh’s planned visit to Washington. The tariffs have strained bilateral ties and disrupted defense negotiations, including deals for Stryker vehicles, Javelin missiles, and Boeing P-8I aircraft. While India denies formally suspending purchases, officials admit talks have stalled until trade tensions ease.

Trump-Putin To Meet In Alaska Amid Sanctions Threats

President Trump initially set an August 8th deadline for Russian President Vladimir Putin to agree to a ceasefire in Ukraine, threatening sweeping sanctions and secondary tariffs targeting Russia’s oil revenue. After the deadline passed without resolution, Trump announced a high-stakes August 15th meeting with Putin in Alaska to discuss the ceasefire and broader security concerns. In the meantime, Trump ordered U.S. nuclear submarines to reposition near Russia in response to provocative rhetoric from Moscow, calling the move a necessary deterrent. While diplomatic efforts continue, experts warn of escalation risks, and Ukraine remains cautious about any deal that could involve territorial concessions.

Israel’s Cabinet Approves Plans To Take Over Gaza City

Israel’s security cabinet has approved Prime Minister Benjamin Netanyahu’s plan to take over Gaza City, marking a major escalation in the ongoing war with Hamas. The plan involves evacuating up to 1 million Palestinians from the city and surrounding it with Israeli forces to eliminate remaining Hamas operatives, despite warnings from the Israeli Defense Forces (IDF) that such a move could endanger hostages and worsen the humanitarian crisis. The plan has drawn widespread international condemnation, with critics warning it could violate international law and deepen the suffering of civilians already facing famine and displacement. A group of about 600 retired Israeli security officials, including former intelligence chiefs, sent a letter to U.S. President Trump urging him to pressure Israel to immediately halt its military operations in Gaza.

US Social & Political Developments

Trump’s Tariffs Take Effect

This week, President Trump’s sweeping new tariffs officially took effect, imposing 10% to 50% duties on imports from dozens of countries as part of a broader push to reduce trade deficits and boost domestic manufacturing. Countries hit hardest include Brazil (50%), Switzerland (39%), and Canada (35%), while others like the UK, Vietnam, and South Korea secured reduced rates through last-minute trade deals. In a separate move this week, Trump announced a 100% tariff on imported semiconductors, with exemptions for companies like TSMC, Samsung, and SK Hynix that have invested in U.S.-based manufacturing.

NASA Announces Plans to Put Nuclear Reactor On The Moon By 2030

NASA is accelerating plans to build a nuclear reactor on the Moon by 2030, under a directive from interim administrator Sean Duffy. The reactor is intended to generate at least 100 kilowatts of power, enough to support lunar bases and long-duration missions, especially during the Moon’s two-week-long nights. This initiative is partly driven by geopolitical competition, as China and Russia plan to build a joint nuclear-powered lunar outpost near the Moon’s south pole by the mid-2030s. Strategically, placing a reactor on the Moon could allow the U.S. to establish a “keep-out zone,” protecting its infrastructure and asserting influence in key lunar regions.

Corporate/Sector News

Apple Announces $100B Investment in US

Apple is investing $100 billion in U.S. manufacturing and innovation, with a major focus on expanding domestic production and supply chains. A key part of this initiative is a $2.5 billion investment in Harrodsburg, Kentucky, where Apple and Corning will produce all cover glass for iPhones and Apple Watches. The Kentucky facility will become the world’s largest smartphone glass production line and include a new Apple-Corning Innovation Center. This announcement comes amid a shifting global trade environment, as Apple strengthens its U.S. operations to reduce reliance on overseas manufacturing and navigate geopolitical uncertainties.

BP Makes Largest Oil Discovery in 25 Years

BP has announced its largest oil discovery in 25 years at the Bumerangue prospect in Brazil’s Santos Basin, located deep offshore southeast of Rio de Janeiro. The well revealed a 500-meter hydrocarbon column in a high-quality pre-salt reservoir, covering over 300 square kilometers. This find is expected to significantly boost BP’s production ambitions and reshape Brazil’s offshore energy landscape. However, elevated CO₂ levels in the reservoir may present development challenges.

Trump Threatens 250% Tariffs On Pharmaceuticals

Pharmaceutical stocks dropped sharply after former President Donald Trump threatened to impose tariffs of up to 250% on imported drugs, aiming to pressure companies to lower prescription prices. Trump stated the tariffs would start small and escalate over time, with the goal of encouraging pharmaceutical manufacturing within the U.S. Experts warn that such tariffs could lead to higher drug prices, supply chain disruptions, and medication shortages, especially for generics. In response, major drugmakers like AstraZeneca, Eli Lilly, and Johnson & Johnson have announced billions in U.S. manufacturing investments to mitigate potential impacts.