Wall Street boosted by earnings, Fed rate cut hopes
At 11:18 a.m. ET, the Dow Jones Industrial Average rose 97.14 points, or 0.22%, to 44,207.51, the S&P 500 advanced 33.76 points, or 0.54%, to 6,332.91 and the Nasdaq Composite was up 151.31 points, or 0.72%, at 21,067.86. Arista Networks was a standout, soaring 17.5% to an all-time high after the cloud networking company projected current-quarter revenue above estimates. McDonald's was 2.8% higher after the fast-food giant's affordable menu drove global sales past expectations.
Global Payments also advanced 5.2% after topping second-quarter profit forecasts, while Match Group, the parent of Tinder, jumped 14.1% after surpassing revenue expectations for the same quarter. Apple jumped 5.2%, providing the biggest boost to the S&P 500 index, as a White House official said the company would announce a $100 billion domestic manufacturing pledge.
The stock was on track for its biggest single-day jump in nearly three months. In contrast, Advanced Micro Devices tumbled 7.7% as its data center chip revenue disappointed. Super Micro Computer plunged 20.7% after missing fourth-quarter sales estimates, dragging rival Dell down 2.4%. Walt Disney delivered a strong quarter and lifted its full-year outlook, but its shares slipped 3.2%.
Airbnb, DoorDash and Lyft will report their results after the market closes. 'Earnings are seeing a mixed reaction. Particularly for a few of the AI names, expectations were just extremely high, but by and large, the earnings in aggregate have been good enough to keep a floor under the market,' said Ross Mayfield, investment strategy analyst at Baird.
Markets also found support in rising bets for a September rate cut after last week's jobs report showed slowing employment growth and downward revisions for previous months, suggesting a weakening labor market and lifting expectations of a Fed action to boost the economy. Odds for next month's rate cut stand at 93.2%, compared with just 46.7% last week, according to CME Group's FedWatch tool. Traders also bet on at least two cuts by the end of 2025.
Tuesday's data showed US services sector activity unexpectedly stalled in July, highlighting US President Donald Trump's tariff-related strain on businesses. Trump's tariff threats showed no signs of easing as he issued an executive order imposing an additional 25% tariff on goods from India due to the country's Russian oil imports. Adding to the uncertainty, Trump will decide on a nominee to replace outgoing Fed Governor Adriana Kugler by the end of the week, while saying he has narrowed the possible replacements for Fed Chair Jerome Powell to a short list of four.
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Business Recorder
3 hours ago
- Business Recorder
Trump-Putin summit ends with no ceasefire in Ukraine war
WASHINGTON/MOSCOW: A highly anticipated summit between U.S. President Donald Trump and Russian President Vladimir Putin yielded no agreement to resolve or pause Moscow's war in Ukraine, although both leaders described the talks as productive before heading home. During a brief appearance before the media following Friday's nearly three-hour meeting in Alaska, the two leaderssaid they had made progress on unspecified issues. But they offered no details and took no questions, with the normally loquacious Trump ignoring shouted questions from reporters. 'We've made some headway,' Trump said, standing in front of a backdrop that read, 'Pursuing Peace.' 'There's no deal until there's a deal,' he added. The talks did not initially appear to have produced meaningful steps toward a ceasefire in the war in Ukraine, the deadliest conflict in Europe in 80 years, a goal Trump had set ahead of the summit. But simply sitting down face-to-face with the U.S. president represented a victory for Putin, who had been ostracized by Western leaders since Russia's full-scale invasion of Ukraine in 2022. Following the summit, Trump told Fox News' Sean Hannity that he would hold off on imposing tariffs on China for buying Russian oil after making progress with Putin. He did not mention India, another major buyer of Russian crude, which has been slapped with a total 50% tariff on U.S. imports that includes a 25% penalty for the imports from Russia. 'Because of what happened today, I think I don't have to think about that now,' Trump said of Chinese tariffs. 'I may have to think about it in two weeks or three weeks or something, but we don't have to think about that right now.' Trump says Putin summit a prelude to real Ukraine dealmaking Trump has threatened sanctions on Moscow as well but has thus far not followed through, even after Putin ignored a Trump-imposed ceasefire deadline earlier this month. In the Fox News interview, Trump also suggested a meeting would now be set up between Putin and Ukrainian President Volodymyr Zelenskiy, which he might also attend. He gave no further details on who was organizing the meeting or when it might be. Putin made no mention of meeting Zelenskiy when speaking to reporters earlier. He said he expected Ukraine and its European allies to accept the results of the U.S.-Russia negotiation constructively and not try to 'disrupt the emerging progress.' He also repeated Moscow's long-held position that what Russia claims to be the 'root causes' of the conflict must be eliminated to reach a long-term peace, a sign he remains resistant to a ceasefire. There was no immediate reaction from Kyiv to the summit, the first meeting between Putin and a U.S. president since the war began. 'Gotta make a deal' Trump signaled that he discussed potential land swaps and security guarantees for Ukraine with Putin, telling Hannity: 'I think those are points that we negotiated, and those are points that we largely have agreed on.' 'I think we're pretty close to a deal,' he said, adding: 'Ukraine has to agree to it. Maybe they'll say no.' When asked by Hannity what he would advise Zelenskiy, Trump said, 'Gotta make a deal.' Trump warns of make-or-break chance with Putin as pressure mounts 'Look, Russia is a very big power, and they're not,' Trump added. The war has killed or injured well over a million people from both sides, including thousands of mostly Ukrainian civilians, according to analysts. Zelenskiy has ruled out formally handing Moscow any territory and is also seeking a security guarantee backed by the United States. Trump said he would call Zelenskiy and NATO leaders to update them on the Alaska talks. Trump was due to arrive back in Washington early on Saturday morning. As the two leaders were talking, the war raged on, with most eastern Ukrainian regions under air raid alerts. Governors of Russia's Rostov and Bryansk regions reported that some of their territories were under Ukrainian drone attacks. Russia's air defense systems intercepted and destroyed 29 Ukrainian drones overnight over various Russian regions, including 10 downed over the Rostov region, RIA agency reported on Saturday, citing the Russian defense ministry. The anticlimactic end to the closely watched summit was in stark contrast to the pomp and circumstance with which it began. When Putin arrived at an Air Force base in Alaska, a red carpet awaited him, where Trump greeted the Russian president warmly as U.S. military aircraft flew overhead. Putin is wanted by the International Criminal Court, accused of the war crime of deporting hundreds of children from Ukraine. Russia denies the allegations, and the Kremlin has dismissed the ICC warrant as null and void. Russia and the United States are not members of the court. 'Next time in Moscow' Zelenskiy, who was not invited to Alaska, and his European allies had feared Trump might sell out Ukraine by essentially freezing the conflict and recognizing - if only informally - Russian control over one-fifth of Ukraine. Trump had sought to assuage such concerns on Friday ahead of the talks, saying he would let Ukraine decide on any possible territorial concessions. Trump will seek to squeeze Ukraine ceasefire deal out of Putin at Alaska summit Asked what would make the meeting a success, he told reporters: 'I want to see a ceasefire rapidly … I'm not going to be happy if it's not today … I want the killing to stop.' The meeting also included U.S. Secretary of State Marco Rubio; Trump's special envoy to Russia, Steve Witkoff; Russian foreign policy aide Yury Ushakov; and Russian Foreign Minister Sergei Lavrov. Trump, who said during his presidential campaign that he would end the Ukraine war within 24 hours, conceded on Thursday it had proven a tougher task than he had expected. He had said if Friday's talks went well, quickly arranging a second, three-way summit with Zelenskiy would be more important than his encounter with Putin. Trump ended his remarks on Friday by telling Putin, 'I'd like to thank you very much, and we'll speak to you very soon and probably see you again very soon.' 'Next time in Moscow,' a smiling Putin responded in English. Trump said he might 'get a little heat on that one' but that he could 'possibly see it happening.' Zelenskiy said ahead of Friday's summit that the meeting should open the way for a 'just peace' and three-way talks that included him, but added that Russia was continuing to wage war. 'It's time to end the war, and the necessary steps must be taken by Russia. We are counting on America,' Zelenskiy wrote on Telegram.
Express Tribune
5 hours ago
- Express Tribune
Reserves edge up, rupee gains for 4th week
Pakistan's foreign exchange reserves recorded a slight improvement during the week ended August 8, 2025, with the State Bank of Pakistan (SBP) holdings rising $11 million to $14.243 billion. According to data released by the central bank, the country's total liquid foreign reserves stood at $19.497 billion. Of this, commercial banks held net reserves of $5.254 billion, while the SBP accounted for the remaining $14.243 billion. Moreover, on Friday, the SBP injected around Rs12 trillion into the banking system through a reverse repo auction. The market operation included Rs191 billion for seven-day tenors at 11.04% and Rs11.812 trillion for 14-day tenors at 11.01%. The Pakistani rupee extended its upward momentum, marking its fourth consecutive week of gains against the US dollar. According to Ismail Iqbal Securities, the local currency appreciated 0.06% day-on-day to close at 282.06 against the greenback. On a calendar-year-to-date basis, however, the rupee has depreciated 1.25%, while in the current fiscal year to date, it has gained 0.60%. AKD Securities noted that the rupee gained for the fourth consecutive week against the US dollar. Meanwhile, gold prices in Pakistan fell, tracking global trends, where the yellow metal edged higher but remained on course for a weekly loss as hotter-than-expected US inflation data dampened prospects of near-term interest rate cuts. Market attention has shifted to the much-anticipated meeting between US President Donald Trump and Russian President Vladimir Putin. In the local market, the price of gold per tola dropped Rs1,000 to Rs357,100, according to the All Pakistan Sarafa Gems and Jewellers Association. The price of 10-gram gold also declined, settling at Rs306,155, after a decrease of Rs858. Earlier in the week, on Wednesday, gold had slipped by Rs200 per tola to Rs358,100. Interactive Commodities Director Adnan Agar noted that the gold market has seen limited movement, with prices fluctuating within a narrow range of about $10 to $15. "The market is relatively stable because of the Russia-US summit. Any significant shift will likely be seen on Monday once the outcome of talks becomes clear," he said. Spot gold rose 0.2% to $3,342.62 per ounce by 11:16 am EDT (1516 GMT), but was down 1.7% for the week, according to Reuters.
Business Recorder
6 hours ago
- Business Recorder
European shares log second weekly gain, focus on Trump-Putin talks
FRANKFURT: European shares came off multi-month highs on Friday, as declines in heavyweight tech and financial shares offset gains from some corporate earnings, while investors monitored a crucial US-Russia summit. The pan-European STOXX 600 index closed 0.1% lower, after hitting a near five-month high earlier in the session. Investor focus was on a meeting between US President Donald Trump and his Russian counterpart Vladimir Putin in Alaska later in the day that investors hope could pave the way for a resolution of the Ukraine conflict. Trump said he would not negotiate on behalf of Ukraine and would let Kyiv decide whether to engage in territorial swaps with Russia. Analysts at Jefferies said that any progress towards de-escalation could benefit consumer, construction, materials and growth-oriented sectors, which have been relatively underinvested in Europe. Aerospace and defence stocks fell 0.8% ahead of the summit. Steve Sosnick, chief market analyst at Interactive Brokers, said: 'Barring something truly outrageous - positive or negative - markets are not necessarily treating it (US-Russia summit) as important from a market point of view.' Technology stocks fell 0.6%, weighing on the STOXX 600 index. ASML, the world's biggest supplier of computer chip-making equipment, fell 1% after US peer Applied Materials lowered its fourth-quarter earnings forecast due to weak demand in China and impacts from tariff uncertainty. The Dutch firm had issued a similar warning in mid-July, saying it might not achieve its 2026 growth forecast. Chip stocks BE Semiconductor and ASMI dropped 3.3% and 2.8%, respectively. On the flip side, miners were the top gainers, adding 0.8%. Antofagasta rose 1.2% after a jump in half-year core earnings on Thursday, helping peers, including Anglo American. Healthcare shares, which have taken a beating this year from uncertainty around Trump's pharma tariffs, were on track for a recovery. The healthcare index logged its seventh consecutive session of gains, its longest streak since late January.
