Nvidia Chips Are Flowing to China Again -- What That Means for AI Adoption Trends
The U.S. government just changed its rules to allow Nvidia to ship its H2O chips to China.
Most AI is still limited to large companies, and as Nvidia expands into new regions and clients, the technology will scale up and become more affordable.
As the support for AI infrastructure grows, Nvidia stands to gain in the long term.
10 stocks we like better than Nvidia ›
Nvidia (NASDAQ: NVDA) has had an almost unreal ascent over the past few years. It crossed the $1 trillion market cap threshold in 2023 and became the fifth-largest company in the world. And it has skipped over the front-runners in two years, increasing by 329%, to become the most valuable company in the world, as well as the first to reach $4 trillion in value.
The stock got a further boost this week when President Donald Trump relaxed the government's stance on selling Nvidia's chips to China. Let's see why this is important for Nvidia and what it means about artificial intelligence (AI) adoption trends globally.
Image source: Getty Images.
Nvidia, the U.S., and China
Nvidia is the premier graphics processing unit (GPU) company, making the most powerful chips for several industries. Before OpenAI changed the tech landscape with the launch of ChatGPT a few years ago, Nvidia was most known for its gaming chips. Today, its greatest growth and potential are in generative AI.
Nvidia is based in California, and as a U.S. company, it's subject to government rules and guidelines. Both the Biden administration and today's Trump administration have leveraged the U.S. lead in AI in its favor and attempted to curtail some of the country's best technology outside of the U.S., specifically in China.
The situation has changed several times, and from this past April until this week, the U.S. had implemented new restrictions on what chips Nvidia could export to China. In the short term, the company had to take a $4.5 billion charge on its fiscal first-quarter (ended April 27) financial statements related to its H2O chips for orders it couldn't fulfill in China.
CEO Jensen Huang has been outspoken in his disagreement with these policies and how he sees this working against the U.S. in the long term. Without Nvidia's products, he believes, Chinese tech companies will figure out how to build their own AI chips and models.
"General-purpose, open-source research and foundation models are the backbone of AI innovation," Huang said. "We believe that every civil model should run best on the U.S. technology stack, encouraging nations worldwide to choose America."
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19 minutes ago
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq mixed as tariffs kick in, Trump signals chip carveout
US stocks trimmed losses on Thursday as President Trump's sweeping tariffs hit dozens of US trade partners after his self-imposed deadline for countries to strike deals expired. Meanwhile, Trump also previewed coming chip tariffs, suggesting a carveout could benefit Big Tech companies. The tech-heavy Nasdaq Composite (^IXIC) rose 0.2%, while the S&P 500 (^GSPC) dropped 0.2%. The Dow Jones Industrial Average (^DJI) also reversed course to trade down 0.5%. On Thursday afternoon Trump announced Stephen Miran, the current chairman of the Council of Economic Advisors will serve on the Federal Reserve Board of Governors until Jan 31, 2026, after Adriana Kugler resigned last Friday. Trump's deadline for trade deals landed at 12:01 a.m. ET on Thursday. Imports from nearly 200 countries now face duties ranging from 10% to 50%, and the overall average effective tariff rate is projected to jump to 18.6%, according to the Yale Budget Lab, the highest since 1933. Read more: The latest on Trump's tariffs Meanwhile, Apple (AAPL) shares climbed Thursday as Trump and CEO Tim Cook announced the company would make a $100 billion investment in the US. As part of the deal, Apple will manufacture the cover glasses for iPhones and Apple Watches in Kentucky. At the same time, Trump's comments that he'd exempt some companies from his plans to place 100% duties on semiconductors gave tech stocks an overall boost for a second consecutive day. Nvidia (NVDA) stock rose around 0.7%. Stocks pared gains in the early morning session after Bloomberg reported Federal Reserve Governor Christopher Waller is "emerging as a top candidate" to serve as the central bank's next chair. Trump is expected to announce a replacement for departing Fed governor Adriana Kugler in the coming days. Meanwhile, another wave of earnings flooded in Thursday morning. The reports featured a tariff warning from Toyota (TM), which said in its first quarter results that the impact of US tariffs will be some $9.5 billion. Among other notable corporate giants to report, Eli Lilly's (LLY) disappointing results of its much-awaited oral GLP-1 pill trial sent the stock down 14% despite posting better-than-expected earnings for the second quarter. Also on Thursday, 1.974 million continuing claims for unemployment benefits were filed, reaching their highest level since November 2021. The state of the labor market is in high focus following a disappointing July jobs report and downbeat revisions to the May and June jobs reports. Trump chooses Stephen Miran to serve on Federal Reserve Board President Trump announced Dr. Stephen Miran, the current chairman of the Council of economic Advisors to serve on the Federal Reserve Board of Governors, after Adriana Kugler resigned last Friday. "It is my Great Honor to announce that I have chosen Dr. Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026," Trump wrote on Truth Social. "In the meantime, we will continue to search for a permanent replacement. Stephen has a Ph.D. in Economics from Harvard University, and served with distinction in my First Administration. He has been with me from the beginning of my Second Term, and his expertise in the World of Economics is unparalleled — He will do an outstanding job. Congratulations Stephen!" Duolingo stock soars after earnings, forfeits roughly half its gains after OpenAI GPT-5 demo Yahoo Finance's Jake Conley reports: Read more here. Gold climbs on trade tensions, hopes of Fed rate cut Gold (GC=F) futures climbed on Thursday as tariffs on imports from nearly 200 countries rolled out, and investor optimism over potential Fed rate cuts in September grew. The precious metal rose 0.6% to trade above $3,454 per ounce. Inflows into gold ETFS and central bank purchases have fueled gold purchases over the past year. Year to date, gold is up about 32%. The prospects of lower interest rates from the Federal Reserve amid a weakening job market have fueled purchases of the precious metal. Meanwhile, President Trump's tariff deadline landed on Thursday, and tariffs on imports from a variety of countries now face duties ranging from 10% to 50%. The overall average effective tariff rate is projected to jump to 18.6% this year, according to the Yale Budget Lab, the highest since 1933. Shareholder warns Apple's $100 billion investment is more optics than impact Yahoo Finance's Francisco Velasquez reports: Read more here. Firefly opens at $70 per share, 56% above IPO price of $45 Shares of Firefly Aerospace — trading under the ticker symbol FLY — opened at $70 per share on Thursday, about 56% above their IPO prices of $45. Brian Sozzi reports: Read more here. Mortgage rates dip near 2025 lows after weak jobs data Yahoo Finance's Shi Bradley and Claire Boston report: Read more here. Waller emerges as Fed chair favorite, Bloomberg says Stocks pared gains in the early morning session after Bloomberg reported Federal Reserve Governor Christopher Waller is "emerging as a top candidate" to serve as the central bank's next chair. Bloomberg reports: Read more here. Toyota slashes 2025 profit guidance, warns of $9.5B tariff hit Toyota (TM), the world's largest automaker, is the latest to warn about the effects of President Trump's tariffs. Yahoo Finance's Pras Subramanian writes: Read the full story here. Bitcoin, crypto stocks rally ahead of Trump order opening 401(k) plans to alternative assets Major cryptocurrencies and crypto-related stocks were rallying early Thursday ahead of President Trump's expected signing of an executive order that would allow alternative assets like cryptocurrencies and private equity into the retirement accounts of millions of Americans, Yahoo Finance's Jake Conley reports. Bitcoin (BTC-USD) rose nearly 2%, while ether (ETH-USD) and XRP (XRP-USD) were both up around 4%. Shares of Coinbase (COIN), the largest publicly traded crypto exchange, rose 3.4%. Robinhood (HOOD) and Strategy (MSTR) climbed over 4% and 2.6%, respectively. Read the full story here. Chip stocks surge as Trump points to tariff exemptions for chipmakers Chip stocks climbed on Thursday after President Trump said he'll exempt companies from his planned 100% semiconductor tariffs if they are making or beginning to make their chips in the US. Nvidia (NVDA) rose more than 2%, while Broadcom (AVGO) jumped 1.7% and Micron (MU) rose 3.4%. Most advanced chips are produced by contract chip manufacturer TSMC (TSM) in Taiwan, but the company has been building out its capacity in Arizona, exempting it from Trump's tariffs. The company's US-listed shares soared nearly 7% Thursday morning, hitting a record high. So far, Nvidia has committed to producing $500 billion of AI infrastructure in the US. Micron made a similar $200 billion commitment. Stocks move higher at the open US stocks rose at the open on Thursday as President Trump hinted at a carveout for coming tariffs on semiconductors, boosting tech for a second day, just as his tariffs hit dozens of US trading partners. The tech-heavy Nasdaq Composite (^IXIC) rose 0.8%. The Dow Jones Industrial Average (^DJI) gained 0.6%, while the S&P 500 (^GSPC) was up 0.5%. Stocks to watch: Apple, Eli Lilly, Taiwan Semiconductor, Fortinet Here's a look at some top trending tickers on Thursday ahead of the opening bell: Read more live coverage of corporate earnings here. Continuing claims for unemployment benefits hit highest since November 2021 Americans filing for unemployment insurance on an ongoing basis reached the highest level since November 2021 at the end of July. In the week ending July 26, 1.974 million continuing claims were filed, up from 1.936 million the week prior and the highest level seen since November 2021, according to data from the Department of Labor released Thursday morning. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Meanwhile, weekly filings for unemployment benefits moved higher to 226,000 in the week ending Aug. 2, up from 221,000 the week prior. Read more: What are jobless claims, and why do they matter? Intel stock dips as Trump calls for CEO resignation President Trump on Thursday morning called for the resignation of Intel's (INTC) CEO Lip‑Bu Tan, who has been at the job since March, saying the executive is "highly conflicted" and should leave his post immediately. 'The CEO of INTEL is highly conflicted and must resign immediately. There is no other solution to this problem. Thank you for your attention to this problem!' wrote Trump on social media. On Wednesday, Reuters reported that US Republican Sen. Tom Cotton sent a letter to the company's board raising questions about Tan's ties to Chinese firms and a recent criminal case involving his former company, Cadence Design (CDNS.O). Intel stock was down as much as 3% in premarket trading. Eli Lilly stock falls despite earnings beat as oral GLP-1 pill results disappoint Eli Lilly (LLY) stock fell 7% in premarket trading. Although the company's second quarter earnings topped expectations, the results of a late-stage trial of its highly anticipated oral GLP-1 pill disappointed. For the quarter, Eli Lilly reported $15.56 billion in revenue, beating Wall Street estimates of $14.69 billion. Earnings per share came in at $6.31, compared to Street expectations of $5.56. Much of the $10.81 billion in US revenue was driven by strong sales of weight-loss drugs, Mounjaro and Zepbound, which increased 46% in volume, though prices fell 8%. Yahoo Finance's Anjalee Khemlani reports: Read more here. Good morning. Here's what's happening today. Economic data: Initial jobless claims (week ending Aug. 2); Nonfarm productivity (second quarter preliminary); Unit labor costs (second quarter preliminary) Earnings: Block (XYZ), Celsius (CELH), ConocoPhillips (COP), Eli Lilly (LLY), Sony (SONY), SoundHound (SOUN), Pinterest (PINS), Take-Two Interactive (TTWO), Twilio (TWLO), The Trade Desk (TTD), Vistra Energy (VST) Here are some of the biggest stories you may have missed overnight and early this morning: Investors are 'agitated' by less than perfect earnings Shopify's strong quarter shows consumers are ignoring tariffs Eli Lilly stock falls on GLP-1 pill trial results Trump's tariffs hit dozens of countries as trade deadline expires Trump to sign order easing path for private assets in 401(k)s Apple leads surge in global tech shares after Trump tariff relief Trump boasts billions of dollars flowing into US from tariffs Warner Bros revenue surges on streaming expansion, box-office hits Trump floats possible tariffs on China for buying Russia oil\ TSMC shares surge as Taiwan says firm exempt from Trump tariffs Keep an eye on Firefly IPO Not too far removed from Figma's (FIG) huge IPO, Firefly will come to market at the Nasdaq later on today. The IPO was upsized, and it's likely it will come out of the block strong when it opens. I am not in love with the company's financials, but it has a host of key deals in place and its technology has proven to work (see trips to moon). And it has a SpaceX ( like story to tell at a hot time for markets. Perfectly timed debut. I am live with Firefly CEO Jason Kim around 11am ET today from the Nasdaq. Tune into Yahoo Finance! SoftBank swings to profit on vision fund gains ahead of AI push Softbank's (SFTBF, 9984.T, SFTBY) Tokyo shares closed 1% up on Thursday after reporting a bigger profit than expected in the June quarter. Bloomberg News reports: Read more here. Apple gains after announcing $100B US investment Apple stock rose 3% before the bell on Thursday. Yahoo Finance's technology editor Daniel Howley and Washington correspondent Ben Werschkul outline the latest developments from the Apple investment announcement on Wednesday. Read more here. Sony stock rises as in-demand games and music help allay Trump tariff fears Bloomberg News reports: Read more here. Trump chooses Stephen Miran to serve on Federal Reserve Board President Trump announced Dr. Stephen Miran, the current chairman of the Council of economic Advisors to serve on the Federal Reserve Board of Governors, after Adriana Kugler resigned last Friday. "It is my Great Honor to announce that I have chosen Dr. Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026," Trump wrote on Truth Social. "In the meantime, we will continue to search for a permanent replacement. Stephen has a Ph.D. in Economics from Harvard University, and served with distinction in my First Administration. He has been with me from the beginning of my Second Term, and his expertise in the World of Economics is unparalleled — He will do an outstanding job. Congratulations Stephen!" President Trump announced Dr. Stephen Miran, the current chairman of the Council of economic Advisors to serve on the Federal Reserve Board of Governors, after Adriana Kugler resigned last Friday. "It is my Great Honor to announce that I have chosen Dr. Stephen Miran, current Chairman of the Council of Economic Advisors, to serve in the just vacated seat on the Federal Reserve Board until January 31, 2026," Trump wrote on Truth Social. "In the meantime, we will continue to search for a permanent replacement. Stephen has a Ph.D. in Economics from Harvard University, and served with distinction in my First Administration. He has been with me from the beginning of my Second Term, and his expertise in the World of Economics is unparalleled — He will do an outstanding job. Congratulations Stephen!" Duolingo stock soars after earnings, forfeits roughly half its gains after OpenAI GPT-5 demo Yahoo Finance's Jake Conley reports: Read more here. Yahoo Finance's Jake Conley reports: Read more here. Gold climbs on trade tensions, hopes of Fed rate cut Gold (GC=F) futures climbed on Thursday as tariffs on imports from nearly 200 countries rolled out, and investor optimism over potential Fed rate cuts in September grew. The precious metal rose 0.6% to trade above $3,454 per ounce. Inflows into gold ETFS and central bank purchases have fueled gold purchases over the past year. Year to date, gold is up about 32%. The prospects of lower interest rates from the Federal Reserve amid a weakening job market have fueled purchases of the precious metal. Meanwhile, President Trump's tariff deadline landed on Thursday, and tariffs on imports from a variety of countries now face duties ranging from 10% to 50%. The overall average effective tariff rate is projected to jump to 18.6% this year, according to the Yale Budget Lab, the highest since 1933. Gold (GC=F) futures climbed on Thursday as tariffs on imports from nearly 200 countries rolled out, and investor optimism over potential Fed rate cuts in September grew. The precious metal rose 0.6% to trade above $3,454 per ounce. Inflows into gold ETFS and central bank purchases have fueled gold purchases over the past year. Year to date, gold is up about 32%. The prospects of lower interest rates from the Federal Reserve amid a weakening job market have fueled purchases of the precious metal. Meanwhile, President Trump's tariff deadline landed on Thursday, and tariffs on imports from a variety of countries now face duties ranging from 10% to 50%. The overall average effective tariff rate is projected to jump to 18.6% this year, according to the Yale Budget Lab, the highest since 1933. Shareholder warns Apple's $100 billion investment is more optics than impact Yahoo Finance's Francisco Velasquez reports: Read more here. Yahoo Finance's Francisco Velasquez reports: Read more here. Firefly opens at $70 per share, 56% above IPO price of $45 Shares of Firefly Aerospace — trading under the ticker symbol FLY — opened at $70 per share on Thursday, about 56% above their IPO prices of $45. Brian Sozzi reports: Read more here. Shares of Firefly Aerospace — trading under the ticker symbol FLY — opened at $70 per share on Thursday, about 56% above their IPO prices of $45. Brian Sozzi reports: Read more here. Mortgage rates dip near 2025 lows after weak jobs data Yahoo Finance's Shi Bradley and Claire Boston report: Read more here. Yahoo Finance's Shi Bradley and Claire Boston report: Read more here. Waller emerges as Fed chair favorite, Bloomberg says Stocks pared gains in the early morning session after Bloomberg reported Federal Reserve Governor Christopher Waller is "emerging as a top candidate" to serve as the central bank's next chair. Bloomberg reports: Read more here. Stocks pared gains in the early morning session after Bloomberg reported Federal Reserve Governor Christopher Waller is "emerging as a top candidate" to serve as the central bank's next chair. Bloomberg reports: Read more here. Toyota slashes 2025 profit guidance, warns of $9.5B tariff hit Toyota (TM), the world's largest automaker, is the latest to warn about the effects of President Trump's tariffs. Yahoo Finance's Pras Subramanian writes: Read the full story here. Toyota (TM), the world's largest automaker, is the latest to warn about the effects of President Trump's tariffs. Yahoo Finance's Pras Subramanian writes: Read the full story here. Bitcoin, crypto stocks rally ahead of Trump order opening 401(k) plans to alternative assets Major cryptocurrencies and crypto-related stocks were rallying early Thursday ahead of President Trump's expected signing of an executive order that would allow alternative assets like cryptocurrencies and private equity into the retirement accounts of millions of Americans, Yahoo Finance's Jake Conley reports. Bitcoin (BTC-USD) rose nearly 2%, while ether (ETH-USD) and XRP (XRP-USD) were both up around 4%. Shares of Coinbase (COIN), the largest publicly traded crypto exchange, rose 3.4%. Robinhood (HOOD) and Strategy (MSTR) climbed over 4% and 2.6%, respectively. Read the full story here. Major cryptocurrencies and crypto-related stocks were rallying early Thursday ahead of President Trump's expected signing of an executive order that would allow alternative assets like cryptocurrencies and private equity into the retirement accounts of millions of Americans, Yahoo Finance's Jake Conley reports. Bitcoin (BTC-USD) rose nearly 2%, while ether (ETH-USD) and XRP (XRP-USD) were both up around 4%. Shares of Coinbase (COIN), the largest publicly traded crypto exchange, rose 3.4%. Robinhood (HOOD) and Strategy (MSTR) climbed over 4% and 2.6%, respectively. Read the full story here. Chip stocks surge as Trump points to tariff exemptions for chipmakers Chip stocks climbed on Thursday after President Trump said he'll exempt companies from his planned 100% semiconductor tariffs if they are making or beginning to make their chips in the US. Nvidia (NVDA) rose more than 2%, while Broadcom (AVGO) jumped 1.7% and Micron (MU) rose 3.4%. Most advanced chips are produced by contract chip manufacturer TSMC (TSM) in Taiwan, but the company has been building out its capacity in Arizona, exempting it from Trump's tariffs. The company's US-listed shares soared nearly 7% Thursday morning, hitting a record high. So far, Nvidia has committed to producing $500 billion of AI infrastructure in the US. Micron made a similar $200 billion commitment. Chip stocks climbed on Thursday after President Trump said he'll exempt companies from his planned 100% semiconductor tariffs if they are making or beginning to make their chips in the US. Nvidia (NVDA) rose more than 2%, while Broadcom (AVGO) jumped 1.7% and Micron (MU) rose 3.4%. Most advanced chips are produced by contract chip manufacturer TSMC (TSM) in Taiwan, but the company has been building out its capacity in Arizona, exempting it from Trump's tariffs. The company's US-listed shares soared nearly 7% Thursday morning, hitting a record high. So far, Nvidia has committed to producing $500 billion of AI infrastructure in the US. Micron made a similar $200 billion commitment. Stocks move higher at the open US stocks rose at the open on Thursday as President Trump hinted at a carveout for coming tariffs on semiconductors, boosting tech for a second day, just as his tariffs hit dozens of US trading partners. The tech-heavy Nasdaq Composite (^IXIC) rose 0.8%. The Dow Jones Industrial Average (^DJI) gained 0.6%, while the S&P 500 (^GSPC) was up 0.5%. US stocks rose at the open on Thursday as President Trump hinted at a carveout for coming tariffs on semiconductors, boosting tech for a second day, just as his tariffs hit dozens of US trading partners. The tech-heavy Nasdaq Composite (^IXIC) rose 0.8%. The Dow Jones Industrial Average (^DJI) gained 0.6%, while the S&P 500 (^GSPC) was up 0.5%. Stocks to watch: Apple, Eli Lilly, Taiwan Semiconductor, Fortinet Here's a look at some top trending tickers on Thursday ahead of the opening bell: Read more live coverage of corporate earnings here. Here's a look at some top trending tickers on Thursday ahead of the opening bell: Read more live coverage of corporate earnings here. Continuing claims for unemployment benefits hit highest since November 2021 Americans filing for unemployment insurance on an ongoing basis reached the highest level since November 2021 at the end of July. In the week ending July 26, 1.974 million continuing claims were filed, up from 1.936 million the week prior and the highest level seen since November 2021, according to data from the Department of Labor released Thursday morning. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Meanwhile, weekly filings for unemployment benefits moved higher to 226,000 in the week ending Aug. 2, up from 221,000 the week prior. Read more: What are jobless claims, and why do they matter? Americans filing for unemployment insurance on an ongoing basis reached the highest level since November 2021 at the end of July. In the week ending July 26, 1.974 million continuing claims were filed, up from 1.936 million the week prior and the highest level seen since November 2021, according to data from the Department of Labor released Thursday morning. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs. Meanwhile, weekly filings for unemployment benefits moved higher to 226,000 in the week ending Aug. 2, up from 221,000 the week prior. Read more: What are jobless claims, and why do they matter? Intel stock dips as Trump calls for CEO resignation President Trump on Thursday morning called for the resignation of Intel's (INTC) CEO Lip‑Bu Tan, who has been at the job since March, saying the executive is "highly conflicted" and should leave his post immediately. 'The CEO of INTEL is highly conflicted and must resign immediately. There is no other solution to this problem. Thank you for your attention to this problem!' wrote Trump on social media. On Wednesday, Reuters reported that US Republican Sen. Tom Cotton sent a letter to the company's board raising questions about Tan's ties to Chinese firms and a recent criminal case involving his former company, Cadence Design (CDNS.O). Intel stock was down as much as 3% in premarket trading. President Trump on Thursday morning called for the resignation of Intel's (INTC) CEO Lip‑Bu Tan, who has been at the job since March, saying the executive is "highly conflicted" and should leave his post immediately. 'The CEO of INTEL is highly conflicted and must resign immediately. There is no other solution to this problem. Thank you for your attention to this problem!' wrote Trump on social media. On Wednesday, Reuters reported that US Republican Sen. Tom Cotton sent a letter to the company's board raising questions about Tan's ties to Chinese firms and a recent criminal case involving his former company, Cadence Design (CDNS.O). Intel stock was down as much as 3% in premarket trading. Eli Lilly stock falls despite earnings beat as oral GLP-1 pill results disappoint Eli Lilly (LLY) stock fell 7% in premarket trading. Although the company's second quarter earnings topped expectations, the results of a late-stage trial of its highly anticipated oral GLP-1 pill disappointed. For the quarter, Eli Lilly reported $15.56 billion in revenue, beating Wall Street estimates of $14.69 billion. Earnings per share came in at $6.31, compared to Street expectations of $5.56. Much of the $10.81 billion in US revenue was driven by strong sales of weight-loss drugs, Mounjaro and Zepbound, which increased 46% in volume, though prices fell 8%. Yahoo Finance's Anjalee Khemlani reports: Read more here. Eli Lilly (LLY) stock fell 7% in premarket trading. Although the company's second quarter earnings topped expectations, the results of a late-stage trial of its highly anticipated oral GLP-1 pill disappointed. For the quarter, Eli Lilly reported $15.56 billion in revenue, beating Wall Street estimates of $14.69 billion. Earnings per share came in at $6.31, compared to Street expectations of $5.56. Much of the $10.81 billion in US revenue was driven by strong sales of weight-loss drugs, Mounjaro and Zepbound, which increased 46% in volume, though prices fell 8%. Yahoo Finance's Anjalee Khemlani reports: Read more here. Good morning. Here's what's happening today. Economic data: Initial jobless claims (week ending Aug. 2); Nonfarm productivity (second quarter preliminary); Unit labor costs (second quarter preliminary) Earnings: Block (XYZ), Celsius (CELH), ConocoPhillips (COP), Eli Lilly (LLY), Sony (SONY), SoundHound (SOUN), Pinterest (PINS), Take-Two Interactive (TTWO), Twilio (TWLO), The Trade Desk (TTD), Vistra Energy (VST) Here are some of the biggest stories you may have missed overnight and early this morning: Investors are 'agitated' by less than perfect earnings Shopify's strong quarter shows consumers are ignoring tariffs Eli Lilly stock falls on GLP-1 pill trial results Trump's tariffs hit dozens of countries as trade deadline expires Trump to sign order easing path for private assets in 401(k)s Apple leads surge in global tech shares after Trump tariff relief Trump boasts billions of dollars flowing into US from tariffs Warner Bros revenue surges on streaming expansion, box-office hits Trump floats possible tariffs on China for buying Russia oil\ TSMC shares surge as Taiwan says firm exempt from Trump tariffs Economic data: Initial jobless claims (week ending Aug. 2); Nonfarm productivity (second quarter preliminary); Unit labor costs (second quarter preliminary) Earnings: Block (XYZ), Celsius (CELH), ConocoPhillips (COP), Eli Lilly (LLY), Sony (SONY), SoundHound (SOUN), Pinterest (PINS), Take-Two Interactive (TTWO), Twilio (TWLO), The Trade Desk (TTD), Vistra Energy (VST) Here are some of the biggest stories you may have missed overnight and early this morning: Investors are 'agitated' by less than perfect earnings Shopify's strong quarter shows consumers are ignoring tariffs Eli Lilly stock falls on GLP-1 pill trial results Trump's tariffs hit dozens of countries as trade deadline expires Trump to sign order easing path for private assets in 401(k)s Apple leads surge in global tech shares after Trump tariff relief Trump boasts billions of dollars flowing into US from tariffs Warner Bros revenue surges on streaming expansion, box-office hits Trump floats possible tariffs on China for buying Russia oil\ TSMC shares surge as Taiwan says firm exempt from Trump tariffs Keep an eye on Firefly IPO Not too far removed from Figma's (FIG) huge IPO, Firefly will come to market at the Nasdaq later on today. The IPO was upsized, and it's likely it will come out of the block strong when it opens. I am not in love with the company's financials, but it has a host of key deals in place and its technology has proven to work (see trips to moon). And it has a SpaceX ( like story to tell at a hot time for markets. Perfectly timed debut. I am live with Firefly CEO Jason Kim around 11am ET today from the Nasdaq. Tune into Yahoo Finance! Not too far removed from Figma's (FIG) huge IPO, Firefly will come to market at the Nasdaq later on today. The IPO was upsized, and it's likely it will come out of the block strong when it opens. I am not in love with the company's financials, but it has a host of key deals in place and its technology has proven to work (see trips to moon). And it has a SpaceX ( like story to tell at a hot time for markets. Perfectly timed debut. I am live with Firefly CEO Jason Kim around 11am ET today from the Nasdaq. Tune into Yahoo Finance! SoftBank swings to profit on vision fund gains ahead of AI push Softbank's (SFTBF, 9984.T, SFTBY) Tokyo shares closed 1% up on Thursday after reporting a bigger profit than expected in the June quarter. Bloomberg News reports: Read more here. Softbank's (SFTBF, 9984.T, SFTBY) Tokyo shares closed 1% up on Thursday after reporting a bigger profit than expected in the June quarter. Bloomberg News reports: Read more here. Apple gains after announcing $100B US investment Apple stock rose 3% before the bell on Thursday. Yahoo Finance's technology editor Daniel Howley and Washington correspondent Ben Werschkul outline the latest developments from the Apple investment announcement on Wednesday. Read more here. Apple stock rose 3% before the bell on Thursday. Yahoo Finance's technology editor Daniel Howley and Washington correspondent Ben Werschkul outline the latest developments from the Apple investment announcement on Wednesday. Read more here. Sony stock rises as in-demand games and music help allay Trump tariff fears Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 minutes ago
- Yahoo
Trump's tariffs are now in place. Alcohol, a cup of joe, and Toyotas are about to cost a whole lot more
President Donald Trump's global tariffs, ranging from 10 to 50 percent, took effect on Thursday, igniting fear among consumers, companies, and investors about potential price hikes. Everyday items ranging from coffee to Toyotas, home furnishings to Gap jeans, are expected to become more expensive as companies adjust their prices to counteract the impact of tariffs. While the president has asked companies to absorb the cost of tariffs, many cannot forever. Even luxury items such as Range Rovers, French wines, or Rolex watches are likely to raise prices as they face 10 percent, 15 percent, and 39 percent tariffs, respectively, from the president. While Trump wants tariffs to promote domestic production and purchasing, Americans will most likely bear the cost. Economic experts agree that sweeping tariffs on goods from countries could lead to supply chain issues, price spikes, or even inflation. Here are some of the goods expected to cost more. Alcohol Consumers of French, Italian, or Spanish wines, Scotch whiskey, and aperitifs such as Aperol, can expect to see the price of their favorite alcoholic beverage rise due to the 15 percent tariff on the European Union. The E.U. is a major exporter of wines and spirits to the U.S. In 2024 alone, the E.U. accounted for $3.4 billion worth of imported spirits. Despite pleas from the beverage industry, the president's trade deal did not create exemptions for alcohol, which will likely drive up the price of imported wine or liquor – either in stores or restaurants. 'Without productive negotiations reducing reciprocal tariffs on wine and spirits, American wine retailers anticipate a significant decline in sales on top of the already difficult market, as well as significant job losses and subsequent business closures,' Tom Wark, the executive director of the Association of Wine Retailers, said. A letter to the president from the Toast Not Tariffs Coalition, a group of 57 associations representing the U.S. alcohol industry and related industries, said tariffs on the E.U. could result in 25,000 American job losses, and nearly $2 billion in lost sales. Diageo, the maker of Guinness, Bailey's, Johnnie Walker, and more, said the company expects to see a $200 million slump as a result of the tariffs. Cars and car parts Already, consumers have seen cars and car parts become more expensive over the last few months as a result of Trump's tariffs because the U.S. relies heavily on its trading partners for auto parts. Cox Automotive, an industry service and technology provider, expects the sticker price of vehicles to rise anywhere from four-to-eight percent by the end of the year. That means the average car price would be above $50,000. While the president struck several deals with countries, many of them still make imported vehicles more expensive. Imported cars from the U.K., such as Range Rovers, are subject to a 10 percent tariff. Japan, which sells more cars to the U.S. than any other country, is facing a 15 percent tariff rate, which is expected to cause major disruption. Toyota said on August 7 it expects a $9.5 billion profit loss for the year. "It's honestly very difficult for us to predict what will happen regarding the market environment," Takanori Azuma, Toyota's head of finance, said. But given that many car parts are imported from Japan, the tariffs are likely to hurt U.S. carmakers as well. General Motors projects a $4 billion loss, Stellantis, the maker of Jeeps, said it anticipates tariffs will add $1.7 billion in expenses, and Ford, which builds more cars in the U.S. than any of its rivals, said it expects tariffs to cause a $2 billion loss this year. Clothing Clothing is expected to see one of the most significant price increases since the U.S. is the largest single importer of apparel, and much of it comes from countries in Asia. 'The 2025 tariffs disproportionately affect clothing and textiles, with consumers facing 40% higher shoe prices and 38% higher apparel prices in the short-run,' the Budget Lab at Yale, a nonpartisan policy research center, said in a recent analysis. Shoes and apparel could remain 19 percent and 17 percent higher, respectively, in the long run, the report added. Vietnam, one of the largest exporters of appear to the U.S., has agreed to a 20 percent tariff. Brands such as Nike, Adidas, Zara, and Gap manufacture much of their clothing in Vietnam. While many can absorb some of those costs, even raising prices 10 percent would make a $65 pair of shoes $71.50, without tax. Bjorn Gulden, the CEO of Adidas, said the tariffs 'will directly increase the cost of our products for the U.S.' Other countries that are high producers of clothing face significant tariffs as well. Bangladesh has a 20 percent tariff, while Indonesia and Cambodia both face a 19 percent tariff. India, also a large producer of apparel, faces a steep tariff of 25 percent and Trump has threatened to increase that to 50 percent by the end of August if the country does not stop importing Russian oil. While the U.S. also imports a large portion of clothing from China, which is still negotiating a trade deal, Trump's decision to get rid of the de minimis exemption will make it more costly for consumers to purchase cheap clothing from stores like Shein or Temu. Coffee The U.S. relies heavily on Brazil to import coffee for the 165 million people who need their daily caffeine fix, but Trump's 50 percent tariff threatens the long-term availability and price of the drink. "When people go to their local coffee shop, whether it's Starbucks or something else, by and large they will likely be buying some form of Brazilian coffee," Monica de Bolle, senior fellow at the Peterson Institute for International Economics, told NPR. "A 50 percent tariff will kill that market." Household products: appliances, cookware, furniture Everyday household items made with steel or aluminum, such as cookware, appliances, furniture, and more, are likely going to be impacted by Trump's steep 50 percent industry tariffs. The U.S. relies heavily on its trading partners, particularly Canada and Mexico, for steel and aluminium imports. Nearly half of the aluminum used in the U.S. is imported, while less than a quarter of steel is imported. But that doesn't mean consumers won't see price increases. One small business, Heritage Steel, a family-owned cookware manufacturer in Tennessee, told NBC News that they recently received a tariff bill of $75,000 on an order of handles – and they're anticipating higher bills in the future. Since the U.S. does not have many specialized steel manufacturers, Heritage Steel imports approximately 75 percent of its raw material. Unlike other cookware manufacturers, they only import raw material and create their products in the U.S. Danny Henn, the vice president of operations for Hertiage Steel, told NBC News that the company wants to keep its products moderately priced, but at the same time, cannot absorb the new price of steel. They've raised their prices approximately 15 percent to make up for it. 'We're happy and proud to be a provider of really high-quality cookware, but one that's more affordably priced than some of the others on the market,' Henn said. 'We want to continue to offer the best price we can, given our constraints.' Watches Although imported watches are not an everyday essential, luxury wristwatches made in Switzerland are likely to see significant price increases thanks to the 39 percent tariff imposed on the country on Thursday. That means Americans looking to purchase a watch from recognizable brands such as Rolex, Breitling, Patek Philippe, Omega, or TAG Heuer may have to pay significantly more. An analysis of the impact, conducted by Bob's Watches, a secondhand watch retailer, found that a $9,900 stainless steel Breitling could rise to $11,080. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Trump 401K Order Could Send ‘Billions' Into Bitcoin, Ethereum: Analysts
U.S. President Donald Trump expected signing of an executive order allowing Americans to add Bitcoin and Ethereum to their 401(k) retirement accounts on Thursday sent crypto markets higher, and analysts believe the news will likely continue to bolster the asset. The order will lead to billions of dollars in investments in digital assets, Varys Capital Head of venture Tom Dunleavy told Decrypt. 'Every two weeks when most Americans receive their paycheck from their employer, a portion of that–usually between 1% and 10% – is allocated to their 401(k),' Dunleavy said. 'Usually that's something like 60% stocks, 40% bonds. If suddenly that becomes 5% crypto in that allocation, you can see billions coming into the asset class over the next few years.' According to Dunleavy, the consistent flows will also help create a floor, or a more stable baseline price. The order would allow individuals to hold alternative investments like private equity, real estate, and cryptocurrency, according to a Bloomberg report. Bitcoin jumped on the news to trade at $116,305, near a 1% gain over the past 24 hours, while Ethereum was changing hands at $3,816, up nearly 4% over the same period. 'The near-term impact of Trump's 401(k) executive order is that it sends another message to investors that crypto's regulatory awakening is here to stay.' Bitwise Head of Research Ryan Rasmussen told Decrypt. 'That's clearly pushing the market higher.' A 401(k) is a popular retirement account and investment vehicle used by Americans that accounts for trillions of dollars in assets with individuals often contributing on a regular basis via their employers or paychecks. 'If crypto captures 1% of 401(k) assets, that's $125 billion of new capital entering the space, with a steady flow thereafter. A 3% capture would be $375 billion, and a 5% capture would be $625 billion. That's a lot of long-term, sustained buying pressure,' Rasmussen said about the opportunity present for crypto. 'In the medium- and long-term, the EO and response from 401(k) plan providers will channel tens (and possibly hundreds) of billions in capital into crypto assets,' he said. Both analysts said that Bitcoin and Ethereum stand to benefit the most from the announcement, highlighting by their availability with existing exchange traded products which have received billions in inflows from investors this year. Ethereum, Solana, XRP Rebound Amid Reports Trump Will Allow Crypto in 401(k)s 'Those crypto assets already exist in an ETF and therefore will be the easiest funds for 401(k) plan providers to underwrite and add to their investment menus,' Rasmussen said. But other crypto assets could benefit in the future, he said, adding that when more crypto ETFs come to market, the assets within them will benefit similarly to Bitcoin and Ethereum. Dunleavy highlighted Solana could closely follow if it gains an ETF. Multiple Solana ETFs applications, including some with staking, still require approval from the SEC before becoming available to investors, though some analysts believe their approval by year's end is a 'near lock.' Solana is up 0.5% in the last 24 hours, now trading at $169.44 and 42% off its January all-time high of $293.31. Predictors on Myriad Markets give it just 30% odds of making a new all-time high in 2025. Both analysts' remarks were similar to Bitcoin evangelist and Galaxy Digital founder Mike Novogratz who said in a CNBC interview Thursday that the Trump order would also lead to huge sums of capital entering crypto markets. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
