logo
US stocks tick higher on rate cut hopes; earnings in spotlight

US stocks tick higher on rate cut hopes; earnings in spotlight

Wall Street is holding steadier on Tuesday following its see-saw ride that bracketed the weekend.
ADVERTISEMENT The S&P 500 was inching up by 0.1% in early trading, coming off its best day since May, which followed its worst day since May. The Dow Jones Industrial Average was up 77 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.1% higher.
Worries are still high that President Donald Trump's tariffs may be hurting the economy. But increased hopes for cuts to interest rates by the Federal Reserve later this year, along with a stream of stronger-than-expected profit reports from U.S. companies, are helping to support the market.
Palantir Technologies helped lead the way after the provider of artificial-intelligence platforms reported a stronger profit for the latest quarter than analysts expected. The AI darling also raised its forecast for revenue over the full year, and its stock climbed 7.5% after it had already doubled for the year so far coming into the day.'We continue to see the astonishing impact of AI leverage,' CEO Alex Karp said.DuPont rose 4.5% after the chemical company likewise topped analysts' expectations for profit and revenue. It also raised its forecast for profit over the full year, even though it's expecting to take a $20 million hit because of tariffs in the second half of 2025.
ADVERTISEMENT They helped to offset a 0.7% slip for Yum Brands after the company behind KFC, Taco Bell and Pizza Hut reported results for the latest quarter that came up just short of analysts' expectations.Hims & Hers Health tumbled 12.2% even though the telehealth company reported a profit that topped analysts' expectations. Its revenue fell short of forecasts.
ADVERTISEMENT The pressure is on companies to report bigger profits after the U.S. stock market surged to record after record from a low point in April. The big rally fueled criticism that the broad market had become too expensive.For stock prices to look like better bargains, either companies need to produce bigger profits, or interest rates need to fall. The latter may happen in September, when the Federal Reserve has its next meeting.
ADVERTISEMENT Expectations have built sharply for a rate cut at that meeting since a report on the U.S. job market Friday came in much weaker than economists expected. Lower interest rates would make stocks look less expensive, while also giving the overall economy a boost, but the potential downside is that they could push inflation higher.Treasury yields sank sharply after Friday's release of the jobs report, and they haven't recovered. The yield on the 10-year Treasury was holding at 4.22%, where it was late Monday and down from 4.39% just before the release of the jobs report.
ADVERTISEMENT In stock markets abroad, indexes rose across much of Europe and Asia.
India's Sensex was an outlier and dipped 0.4% on concerns over trade tensions with the United States as the Trump administration pushes for cutbacks in the country's oil purchases from Russia.
(You can now subscribe to our ETMarkets WhatsApp channel)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

We'll be putting 100% tariff on chips and semiconductors: Trump
We'll be putting 100% tariff on chips and semiconductors: Trump

India Today

timea few seconds ago

  • India Today

We'll be putting 100% tariff on chips and semiconductors: Trump

US President Donald Trump said on Wednesday he will impose a 100 per cent tariff on imported computer chips, a move that could sharply increase the cost of electronics, vehicles and home appliances while aiming to boost domestic manufacturing.'We'll be putting a tariff on of approximately 100% on chips and semiconductors,' Trump said during a meeting in the Oval Office with Apple CEO Tim Cook. 'But if you're building in the United States of America, there's no charge.'advertisementTrump framed the move as a way to revive domestic manufacturing and end US reliance on foreign chipmakers. He said American-made chips would be exempt from the import tax. The global chip shortage during the COVID-19 pandemic exposed vulnerabilities in the supply chain and drove up consumer prices, a point Trump cited in justifying the new policy. Trump's approach contrasts with the bipartisan CHIPS and Science Act passed in 2022 under then-President Joe Biden, which provided more than USD 50 billion in incentives to support domestic chip production, workforce training and law aimed to make US chipmaking competitive by luring private investment with federal support. Trump has dismissed that path, favoring tariffs over what he sees as corporate demand for semiconductors continues to rise, with sales jumping nearly 20 per cent in the 12 months ending in June, according to the World Semiconductor Trade Statistics group.- EndsWith inputs from Associated PressTune InMust Watch

Donald Trump eyes 100% tariff on semiconductor import, to exempt Apple after $600 billion commitment
Donald Trump eyes 100% tariff on semiconductor import, to exempt Apple after $600 billion commitment

Hindustan Times

time30 minutes ago

  • Hindustan Times

Donald Trump eyes 100% tariff on semiconductor import, to exempt Apple after $600 billion commitment

Donald Trump said he would impose a 100% tariff on imports that include semiconductors, though would exempt companies moving production back to the United States, as Apple Inc. CEO Tim Cook and the president announced a fresh $100 billion investment plan from the Oval Office. US President Donald Trump reaches to shake Apple CEO Tim Cook's hands in the Oval Office at the White House in Washington, D.C., on the day they presented Apple's announcement of a $100 billion investment in U.S. manufacturing.(REUTERS) 'We're going to be putting a very large tariff on chips and semiconductors, but the good news for companies like Apple is, if you're building in the United States, or have committed to build, without question, committed to build in the United States, there will be no charge,' Trump told reporters. 'So in other words, we'll be putting a tariff of approximately 100% on chips and semiconductors. But if you're building in the United States of America, there's no charge,' Trump said. 'Even though you're building and you're not producing yet, in terms of the big numbers of jobs and all of things building, if you're building, there will be no charge.' The announcement amounts to a major victory for Apple and Cook, who have faced escalating threats from Trump's tariffs that threatened to ratchet up the cost of producing their signature phones and computers. Apple's $100 billion US investment will include a new manufacturing program designed to bring more of Apple's production to the US. The company's American Manufacturing Program partners include glassmaker Corning Inc., Applied Materials Inc., Texas Instruments Inc. and others, the company said. Corning will dedicate an entire factory in Kentucky to Apple glass production, increasing that company's workforce in the state by 50%, the iPhone maker said. Corning was already a supplier to Apple, making glass for the very first iPhone at the same factory. Apple had previously pledged to spend $500 billion in the US over the next four years, a slight acceleration over its prior investments and previously announced plans, adding about $39 billion in spending and an additional 1,000 jobs annually. The announcement will bring Apple's cumulative commitment to $600 billion. The previously-planned $500 billion is said to include work on a new server manufacturing facility in Houston, a supplier academy in Michigan and additional spending with its existing suppliers in the country. The increased pledge comes as Trump escalates a tariff push that's set to raise costs for Apple throughout its international supply chains. Trump plans to whack India — a key production market for Apple — with 50% tariffs, the first half of which takes effect just after midnight alongside a raft of other country-specific levies designed to reduce trade imbalances. The other half, to penalize India for buying Russian energy, will take effect later this month. The president has said he could unveil separate levies on all products containing semiconductor chips as soon as next week. Cook, who attended the president's inauguration and donated to his inaugural committee, has pushed for tariff exemptions for his company's iPhones. Most iPhones sold in the US come from India, while the bulk of other products, including Apple Watches, iPads and MacBooks, are manufactured in Vietnam, which was hit with a 20% tariff. While details of those tariffs — and how firms would qualify for exemptions — have yet to be released, Trump singled out Cook's Apple as an example of how to avoid the increased levies. Cook's investment echoes dozens of pledges from companies since Trump won the 2024 presidential election, with CEOs flying to his Mar-a-Lago resort in Florida, and then to the White House once he was sworn in, to court the new administration and announce hundreds of billions of dollars worth of new deals. Many of these investments were already in the works prior to the November election, or were on par with previous investment trends, Bloomberg previously reported. Economists have also questioned whether all of the pledged spending, and associated job opportunities, will come to fruition. Apple's promised investments, while substantial, fall short of the full shift to US-based production that Trump and top White House officials have envisioned and encouraged. Earlier this year, the president threatened to impose a tariff of at least 25% on Apple if it didn't move manufacturing of the iPhone to the US, a day after he met with Cook at the White House. Cook told the president that final iPhone assembly 'will be elsewhere for a while,' though highlighted that several components are being made in the US. Trump, seemingly satisfied, praised the Apple leader's plans. 'Look, he's not making this kind of an investment anywhere in the world, not even close,' Trump said of Cook. 'He's coming back. I mean, Apple's coming back to America.'

Trump non-committal on whether extra India tariffs will go with Russia-Ukraine ceasefire
Trump non-committal on whether extra India tariffs will go with Russia-Ukraine ceasefire

The Hindu

time30 minutes ago

  • The Hindu

Trump non-committal on whether extra India tariffs will go with Russia-Ukraine ceasefire

U.S. President Donald Trump did not confirm whether the additional 25% tariffs he had announced on Wednesday (August 6, 2025), on Indian exports to the U.S., for New Delhi's trade in arms and energy with Moscow, would be cancelled if Russia and Ukraine agreed to a ceasefire. 'Well, we'll determine that later, but right now, they're paying a 50% tariff,' Mr. Trump told a reporter who asked if the additional 25% tariff on top of the 25% 'reciprocal tariff', would go following a ceasefire. Mr. Trump was taking questions at an event at the White House with Apple CEO Tim Cook. The President said he would be imposing a tariff of 100% on computer chips and semiconductors, while announcing that Apple would invest $100 billion in the U.S. Mr Trump had reportedly told European allies on Wednesday that he would have an in-person meeting with Russian President Vladimir Putin as early as next week and had plans for a follow-up with Mr. Putin and Ukrainian President Volodymyr Zelenskyy. Also, on Wednesday, Mr. Trump's special envoy Steve Witkoff met with Mr. Putin on Wednesday. Talks 'productive' Mr. Trump described the talks as 'productive' and said he did not know if the additional tariffs on India had anything to do with this. 'And as you know, we put a 50% tariff on India on oil. They're the second largest [purchaser of Russian oil]. They're very close to China in terms of the purchase of oil from Russia. So, I don't know if that had anything to do with it, but we've had very productive talks today,' he said. After imposing additional tariffs on India for trading in arms and energy with Russia, U.S. President Donald Trump said other countries could follow suit, suggesting China by name as a possibility. Asked why he was 'singling India out' for additional tariffs, Mr. Trump said, 'It's only been eight hours. So let's see what happens over the… You're going to see a lot more. You're going to see so much secondary sanctions,' he said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store