Stock Market News Review: SPY, QQQ Resilient as U.S.-Canada Trade Talks End, Inflation Rises
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Following Canada's decision to proceed with its digital services tax on U.S. technology companies, Trump announced a halt to all U.S.-Canada trade discussions. The tax charges a 3% fee on all U.S. tech revenue above C$20 million, or about $14.6 million, collected from Canadian users.
'We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,' said Trump on Truth Social.
Trump also said that the U.S. would no longer consider removing sanctions on Iran following a speech from Iranian Supreme Leader Ayatollah Ali Khamenei. Khamenei downplayed the damage of the U.S. strikes on three of Iran's nuclear sites and said that the country had delivered a 'slap to America's face.'
Meanwhile, the core personal consumption expenditures (PCE) index, the Fed's preferred gauge of inflation, showed a monthly rise of 0.2% and a yearly rise of 2.7%. Economists were expecting growth of 0.1% and 2.6%, respectively. Furthermore, April's core PCE was revised upward to 2.6% from 2.5%. Core PCE excludes food and energy prices from the regular PCE index given their volatility.
Shifting gears to more optimistic news, Trump is preparing executive orders to support AI development, according to Reuters. The orders could include green-lighting the construction of AI data centers on federal land and easier grid access for new energy projects, said sources close to the matter.
What's more, consumer sentiment could be in the early stages of a recovery. The June Index of Consumer Sentiment rose by 16% month-over-month to 60.7, reversing six consecutive months of declines. Economists were expecting 60.5, with a higher figure representing a more positive economic outlook. At the same time, fears over tariff-driven inflation and economic uncertainty still persist.
'Despite June's gains, however, sentiment remains about 18% below December 2024, right after the election; consumer views are still broadly consistent with an economic slowdown and an increase in inflation to come,' said Survey of Consumers Director Joanne Hsu.
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Yahoo
22 minutes ago
- Yahoo
Prediction: 2 Artificial Intelligence (AI) Stocks That Will Be Worth More Than Nvidia by 2030
Key Points Nvidia has been the biggest beneficiary of AI spending among big tech companies. But Amazon and Meta Platforms are two tech giants seeing very strong results from investments in AI, and their future could be even brighter. Both trade at compelling valuations, especially compared to how expensive Nvidia has become. 10 stocks we like better than Amazon › Since October 2022, Nvidia has seen its value increase by more than $4 trillion. To put that into perspective, no other company is even worth $4 trillion today. The huge surge in value for the maker of graphics processing units (GPUs) stems from a few big tech companies spending hundreds of billions on its chips every year. The four biggest hyperscalers are set to spend around $380 billion on AI infrastructure this year, and they have guided for significant steps up in spending next year. Nvidia is set to be the prime beneficiary of that increased spending for some time, but that doesn't mean the stock will continue to climb. Market prices are based on what investors expect in the future, and the expectations for Nvidia remain high. But two other AI stocks look like they could surpass investor expectations, pushing both companies to exceed Nvidia's value by 2030. Can Nvidia keep climbing from here? Continued growth in AI spending is giving investors more and more confidence that Nvidia can keep up its torrid sales growth. The three main public cloud providers all reiterated that demand exceeds computing capacity, which means they will continue to spend growing amounts to meet their customers' needs. Meanwhile, Nvidia is selling chips as fast as it can make them. That led to a 69% rise in revenue in the company's first quarter, and a 59% increase in adjusted income. But it's unlikely to see growth continue at this pace. All four hyperscalers are working on custom silicon solutions for their own AI training. Microsoft is reportedly planning to shift a significant portion of its spending to its Maia300 chip in late 2026. Meta Platforms (NASDAQ: META) is working on expanding the AI workloads that its custom Meta Training and Inference Accelerating (MTIA) chips can handle. And on top of all of that, AMD is starting to show progress in catching up to Nvidia, while continuing to offer excellent price performance. Investors should expect a significant slowdown in sales as Nvidia faces fierce competition for its share of data center servers and it battles with the law of large numbers. As supply-demand forces reach equilibrium, the chipmaker might not be able to command such high gross margins, either. That could weigh on earnings growth. But with the stock currently trading at more than 42 times forward earnings, investors seem to think those risks aren't going to materialize. I think it's more likely they will keep Nvidia from continuing to outperform the market at such a torrid pace, limiting how much more upside there is from here. If investors want to buy shares of a big tech company capitalizing on the growth of AI, the following two industry giants present better value with more upside. In fact, I expect they will both be worth more than Nvidia by 2030. 1. Amazon Amazon (NASDAQ: AMZN) is the largest provider of public cloud computing in the world with Amazon Web Services (AWS), making it one of Nvidia's biggest customers. While the company was caught flat-footed as generative AI took off in 2022, management quickly caught up with the competition thanks in part to its investment in Anthropic. Management continues to see strong demand for its AI services, with revenue more than doubling year over year. However, AWS's scale has masked that strong growth. The cloud services segment generated $116 billion in revenue over the last 12 months. That's roughly 55% larger than its next closest competitor, Microsoft. But AWS's 17% year-over-year growth looks disappointing compared to Microsoft's 39% growth in cloud services last quarter. Nonetheless, Amazon has mostly kept its market share despite strong growth by its competitors. What's more important is that the margin profile on AWS is extremely strong. The operating margin of 36.8% over the last 12 months is up from 33.4% a year ago. And while it took a dip in the second quarter, that's due to the timing of share-based compensation. The long-term trend shows continued improvement in margins. Meanwhile, Amazon's retail business is becoming very profitable in its own right. The North American segment saw its operating margin climb to 7% last quarter while the international segment's margin came in at 3.4%. Strong top-line growth of 11% for both helped, which was bolstered by high-margin ad revenue growth of 22%. The long-term trends favor steady revenue growth across Amazon's businesses with particular strength in its high-margin operations (namely AWS and advertising). That should result in earnings growth well above average. And as its spending growth on AWS slows down, free cash flow should rise to new records by the end of the decade. That gives the company more opportunities to invest for growth, just as it has managed to do throughout its history. The stock currently looks attractive amid a small pullback in price. 2. Meta Platforms Meta is another major Nvidia customer, but unlike Amazon, it only uses Nvidia chips for its own AI needs. In fact, it might be spending more on its own AI needs than any other company in the world. And Meta's second-quarter results are a clear example of why it's willing to spend so much. Sales grew 22% last quarter, and its operating margin expanded 5 percentage points. For some perspective, that's faster revenue growth than both Snap and Pinterest despite being a much bigger force in social media advertising. Meta's AI capabilities are a clear reason for the outperformance. Artificial intelligence has led to better recommendations for both advertisements and organic content. As a result, the company served up more ads and was able to command higher pricing per ad impression. Meanwhile, it's seeing strong uptake of its generative AI tools for ad creation, which makes it easier for marketers to create and test new ideas. There are a number of other opportunities that AI could unlock. Those include AI chatbots for businesses in WhatsApp and Messenger, which could drive increased click-to-message ads in Facebook and Instagram. And management has said its Meta AI chatbot built into its apps now has 1 billion monthly active users, giving it yet another surface to monetize with ads. It only recently started showing ads in WhatsApp and Threads. That should give it room to grow supply as demand increases due to its generative AI tools making advertising easier. Lastly, Meta is at the forefront of development in augmented and virtual reality. AI can unlock a lot of value in an environment that's also aware of your surroundings. The company has already seen strong early adoption of its Meta Glasses with AI built in. Shares look very attractive with an enterprise value around 16 times forward estimates on earnings before interest, taxes, depreciation, and amortization (EBITDA). While depreciation of its data centers will weigh on its margins, the company is proving the investments are paying off with very strong revenue growth and by unlocking a lot of potential profits in the long run. Do the experts think Amazon is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Amazon make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,070% vs. just 184% for the S&P — that is beating the market by 885.55%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Adam Levy has positions in Amazon, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Meta Platforms, Microsoft, Nvidia, and Pinterest. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: 2 Artificial Intelligence (AI) Stocks That Will Be Worth More Than Nvidia by 2030 was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
UPI
22 minutes ago
- UPI
7 European leaders to join Zelensky in White House meeting Monday
1 of 2 | European Commission President Ursula von der Leyen welcomes Ukrainian President Volodymyr Zelensky before a meeting in Brussels, Belgium, on Sunday. Photo by Olivier Hoslety/EPA Aug. 17 (UPI) -- Seven European leaders will join Ukrainian President Volodymyr Zelensky for talks with U.S. President Donald Trump on Monday in a bid to end the war against Russia. Zelensky and Trump announced the meeting on Saturday. On Sunday, it was disclosed they will be joined by British Prime Minister Keir Starmer, French President Emmanuel Macron, German Chancellor Friedrich Merz, Italian Prime Minister Giorgia Meloni, Finnish President Alexander Stubb, European Commission President Ursula von der Leyen and NATO Secretary General Mark Rutte. Zelensky last saw Trump in the White House on Feb. 23. During the contentious meeting, Trump accused Zelensky of "gambling with World War III" and being "disrespectful" to the United States. Plans for a cease-fire and a news conference were called off. Two months later, the two leaders met amicably when they went to the funeral for Pope Franic at the Vatican on April 26. Zelensky and von der Leyen met in Brussel, Belgium, on Sunday, joining a "coalition of willing," who are Ukraine's main European allies, in a video conference. European leaders on Saturday signed a joint statement that, "as President Trump said, 'there's no deal until there's a deal.' As envisioned by President Trump, the next step must now be further talks, including President Zelenskyy, whom he will meet soon." In addition to the attendee's of Monday's meeting in Washington, the statement was signed by European Council President Antonio Costa and Polish Prime Minister Donald Tusk. The leaders of the Nordic-Baltic Eight -- Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden -- said in a statement that there should be "no decisions on Ukraine without Ukraine and no decisions on Europe without Europe." Trump posted Sunday morning on Truth Social "BIG PROGRESS ON RUSSIA. STAY TUNED." Minutes earlier, he also criticized the media in two posts, writing that "if I got Russia to give up Moscow as part of the Deal, the Fake News, and their PARTNER, the Radical Left Democrats, would say I made a terrible mistake and a very bad deal. That's why they are the FAKE NEWS! Also, they should talk about the 6 WARS, etc., I JUST STOPPED!!! MAGA." Earlier, he wrote that "it's incredible how the Fake News violently distorts the TRUTH when it comes to me. There is NOTHING I can say or do that would lead them to write or report honestly about me. I had a great meeting in Alaska on Biden's stupid War, a war that should have never happened!!!" It had been more than 24 hours since he posted about the war in Ukraine. After speaking with Zelensky and European leaders following his meeting with Russian President Vladimir Putin on Friday in Alaska, he wrote that "it was determined by all that the best way to end the horrific war between Russia and Ukraine is to go directly to a Peace Agreement, which would end the war, and not a mere Ceasefire Agreement, which often times do not hold up." This stance shifted to an end to the 3 1/2-year-old war that began with Russia's invasion of the sovereign nation. Zelensky was not invited to the summit with the two leaders. CNN reported Trump told the Europeans he wants a summit among himself, Putin and Zelensky on Friday if talks go well on Monday with Ukraine's leader. Information from Putin and Trump has been light on details. They spoke to reporters for a total of 12 minutes and took no questions on Friday. They didn't mention whether Russia or Ukraine will give up land acquired during the war. The three-on-three meeting included Secretary of State Marco Rubio, who also is Trump's national security adviser, as well as Trump's special envoy Steve Witkoff. "The point was that we began to see some moderation in the way they're thinking about getting to a final peace deal," Witkoff said in an interview with Jake Tapper on CNN's State of the Union. "We made so much progress at this meeting with regard to all the other ingredients necessary for a peace deal that we, that President Trump pivoted to that place." Putin spoke about "land swaps" during the meeting, Witkoff said. Witkoff said that Putin discussed land swaps during their meeting, but did not go into specifics beyond that Putin now suggesting swaps occur at the current front lines rather than the administrative boundaries of at least some of the regions. "The Russians made some concessions at the table with regard to all five of those regions," Witkoff said. "Hopefully, we can cut through and make some decisions right then and there." The Trump administration has said it is up to Zelensky to accept a deal, and noted that Zelensky has opposed land swaps. Trump told the European leaders that Putin insists Ukraine allow Russia to totally control the Donbas region in Eastern Ukraine where intense fighting has taken place since 2022, two sources told The New York Times. In exchange, he would freeze the current front lines elsewhere in Ukraine -- the regions of Kherson and Zaporizhzhia -- and promised not to attack Ukraine again or other European nation. Putin wants Ukraine to withdraw from Donetsk, which represents 30% of the eastern region. Russia had partially seized the Donbas in 2014 when the nation annexed the Crimean peninsula and captured key areas of the region in 2022. Witkoff also said Putin agreed to allow a collective defense provision for Ukraine in a peace deal. For the first time, Witkoff said Putin offered a version of NATO's Article 5 provision -- that the groups members will come to the defense of an ally under attack -- with Ukraine, but without involvement from NATO. "We got to an agreement that the United States and other European nations could effectively offer Article 5-like language to cover a security guarantee," Witkoff said on CNN. "Putin has said that a red flag is NATO admission," Witkoff said. And so what we were discussing was assuming that that held, assuming that the Ukrainians could agree to that and could live with that - and everything is going to be about what the Ukrainians can live with - but assuming they could, we were able to win the following concession that the United States could offer Article 5-like protection." Putin hasn't spoken directly about aspects of a possible peace deal. Zelensky thanked the European nations' support since the beginning of the war in February 2025, and said "sanctions show we are serious." "We need real negotiations, which means they can start where the front line is now," Zelensky said at a news conference with the EU's von der Leyen. "The contact line is the best line for talking [...] Russia is still unsuccessful in Donetsk region. Putin has been unable to take it for 12 years, and the Constitution of Ukraine makes it impossible to give up territory or trade land. "Since the territorial issue is so important, it should be discussed only by the leaders of Ukraine and Russia and the trilateral Ukraine-United States-Russia. So far, Russia gives no sign that trilateral will happen, and if Russia refuses, then new sanctions must follow." Zelensky said he wanted more clarity on the "security guarantees" from Trump. Unlike Trump, Zelensky has urged a ceasefire before a peace deal. "First we have to stop the killings," Zelensky said. "Putin has many demands, but we do not know all of them, and if there are really as many as we heard, then it will take time to go through them all. "It's impossible to do this under the pressure of weapons. So it's necessary to cease-fire and work quickly on a final deal. We'll talk about it in Washington. Putin does not want to stop the killing, but he must do it," the Ukrainian president said. Von der Leyen, noting Ukraine must become a "steel porcupine, undigestible for potential invaders," said there must be no limitations on Ukraine's military. "We must have strong security guarantees to protect both Ukraine and Europe's vital security interests. Ukraine must be able to uphold its sovereignty and its territorial integrity," she said. Situation in Ukraine Russia continued aerial attacks overnight with five people dead and at least 11 injured in Ukraine's Donetsk, Kharkiv and Kherson regions, local authorities said. Russia launched 60 long-range drones and one ballistic missile, according to Ukraine's Air Force, as 40 other drones were downed by Ukrainian defenses. Russia's Ministry of Defense said 46 drones were intercepted from Ukraine. One person was injured in Russia's Voronzh region from debris, the local governor said. In central Kyiv at a market, the BBC reported few people were hopeful about the meeting on Monday. "The signs don't tell us about good expectations for tomorrow," said 35-year-old Iryna Levchuk while picking fruit and with her dog Susy, rescued from the frontline city of Kherson. Regarding a land swap, Dmitril said: "This won't work -- none of this will work. You've got to explain to the people that they need to negotiate with the terrorists."
New York Post
23 minutes ago
- New York Post
More than 700 National Guard troops from 3 GOP-led states will be deployed to DC to bolster Trump crackdown
Three Republican-led states will be deploying hundreds of National Guard members to Washington, DC, to bolster President Trump's crackdown on crime and homelessness in the nation's capital. West Virginia will be sending up to 400 troops, South Carolina has pledged 200 and Ohio will dispatch 150 in the coming days, the three states announced on Saturday. 'We stand ready to support our partners in the National Capital Region and contribute to the collective effort of making our nation's capital a clean and safe environment,' Maj. Gen. Jim Seward of the West Virginia National Guard said. The Mountain State's governor, Patrick Morrisey, added: 'West Virginia is proud to stand with President Trump in his effort to restore pride and beauty to our nation's capital,' adding that the mission 'reflects our shared commitment to a strong and secure America.' Three Republican-run states are sending an additional 750 National Guard personnel to Washington DC. AP South Carolina Gov. Henry McMaster announced the deployment of 200 National Guard personnel from the Palmetto State to DC, but said the troops could be recalled in the event of a major national disaster such as a hurricane. He said the deployment was part of Trump's efforts to restore law and order in Washington, and in response to a request from the National Guard Bureau at the Pentagon. Ohio Gov. Mike DeWine, meanwhile, said he was sending 150 military police officers to support the DC National Guard. It follows protests in the capital on Saturday. Getty Images 'These Ohio National Guard members will carry out presence patrols and serve as added security,' he said in a statement. None of the members — who are expected to arrive in DC within the coming days — are currently serving as law enforcement officers within the Buckeye State, DeWine said. The deployments of 750 troops from the three states would bring the total number of National Guard personnel within the capital to over 1,450. So far, National Guard members have played a limited role in the federal intervention. Troops have been spotted patrolling landmarks such as the National Mall and Union Station, as well as assisting law enforcement with tasks such as crowd control. With Post wires
