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Wall Street opens higher as traders eye Fed decision, US-China trade talks

Wall Street opens higher as traders eye Fed decision, US-China trade talks

Time of India07-05-2025

US stock markets opened modestly higher on Wednesday, with investors treading cautiously ahead of a critical Federal Reserve interest rate decision and renewed trade negotiations between the US and China.At 9:45 a.m. GMT-4, the Dow Jones Industrial Average (DJIA) rose 238 points or 0.58% to 41,067, while the S&P 500 gained 20.52 points or 0.37% to reach 5,627.43. The Nasdaq Composite advanced 54.59 points or 0.31% to 17,744.25.Despite gains in equities, gold prices slipped as geopolitical tensions showed early signs of easing, with the metal dropping $26.20 or 0.77% to $3,396.60 per ounce. Oil also edged down $0.38 to $58.71 per barrel, continuing a modest decline amid demand concerns.Bond yields held steady, with the 10-year US Treasury yield at 4.297%, down slightly by 0.021 percentage points. The VIX volatility index rose marginally to 24.84, reflecting a measured level of market caution. Meanwhile, the euro traded at $1.135, slightly weaker against the dollar.Meanwhile, Futures for the S&P 500 and Nasdaq composite rose 0.6%, while Dow Jones Industrial Average futures climbed 0.7%.Walt Disney Co. surged over 6% in premarket trading after reporting better-than-expected quarterly earnings. Revenue rose 7% year-on-year, with 2.5 million new subscribers added to Disney+ and Hulu.The results came shortly after Trump criticized foreign-made films, authorizing import taxes on international productions.Electronic Arts also gained more than 5% after its preliminary quarterly results beat analysts' expectations for both sales and profit.Despite strong earnings from some firms, the uncertainty from escalating tariffs has impacted business outlooks. Some companies have issued dual earnings forecasts — one assuming higher tariffs and another without them — reflecting the market's volatility.Federal Reserve Chair Jerome Powell is expected to maintain current rates, with officials wanting more data on how tariffs — including 145% duties on all Chinese imports — are affecting the economy.Concerns around tariffs have influenced household sentiment and led to a spike in imports. The US trade deficit hit a record $140.5 billion in March, with businesses and consumers accelerating purchases ahead of further tariff hikes.In Europe, midday trading was mixed with Germany's DAX flat, the CAC 40 in France down 0.6%, and the UK's FTSE 100 off 0.4%.Asian shares mostly rose as the US and China scheduled trade talks in Switzerland. Hong Kong's benchmark briefly jumped over 2% on fresh stimulus from Beijing aimed at countering the impact of US tariffs, though gains moderated later. The Hang Seng ended up just 0.1%, while Tokyo's Nikkei slipped 0.1%. Shanghai's Composite Index gained 0.8%.ING Economics' Lynne Song noted that China's easing measures were likely preemptive, intended to appear strategic rather than reactive to trade pressures. However, analysts expressed disappointment over limited fiscal support in Beijing's package.Australia's S&P/ASX 200 rose 0.3%, and South Korea's Kospi added 0.6%.In commodities, US crude oil increased 48 cents to $59.57 per barrel, while Brent crude rose 40 cents to $62.55.The dollar strengthened to 143.34 yen from 142.41 yen. The euro slipped slightly to $1.1365.

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US tariffs: Smartphones, PCs may become expensive for customers, says S&P
US tariffs: Smartphones, PCs may become expensive for customers, says S&P

Time of India

time22 minutes ago

  • Time of India

US tariffs: Smartphones, PCs may become expensive for customers, says S&P

NEW DELHI: Smartphones and personal computers (PCs) may become expensive as a result of manufacturers passing on the higher costs, arising from US tariffs , to end-consumers, S&P Global Ratings said. 'We expect PC and phone makers will pass on the higher cost to customers even if it leads to some demand destruction, especially for consumers who make up 45% of PC sales and most of smartphone sales,' the global credit ratings agency said in a research note, seen by ETTelecom . It noted that smartphone makers, such as Apple and its key suppliers, and personal computer (PC) manufacturers heavily reliant on China, are the most vulnerable to the US tariffs. 'S&P Global Ratings believes the most vulnerable companies are those with the largest reliance on China's integrated technology production infrastructure and the U.S. as a major end market,' it said in the research note. In particular, it said Apple and its key suppliers, including Hon Hai Precision Industry (Foxconn), may be the most disrupted due to reliance on China for production. Apple, with a shipment share of over 60% in the US market as of Q4 2024, faces a risk given its significant reliance on production in China. iPhones account for nearly 50% of Apple's revenue, with the US representing approximately a third of its global smartphone shipments, said S&P. The Cupertino-headquartered firm, however, has been shifting its production supply chain to India, which is expected to cover most of Apple's iPhone shipments to the US by 2026, the credit rating agency estimated. In turn, Korean Samsung 's bulk of production happens in Vietnam and India. 'Vietnam and India account for the bulk of Samsung's production base. Smartphone production is labor intensive, favoring production in countries with low labor costs such as India and Vietnam. Tariffs on these countries pose further risk for the issuers with significant U.S. smartphone exposure such as Apple and Samsung and their suppliers,' said S&P in its research note. Xiaomi is the only outlier that does not have direct exposure to the US consumer market. Its chips, too, are fabricated in Taiwan, and are unlikely to be a target of the US export restrictions, and neither will be subject to China's tariff on US goods. The Donald Trump administration has imposed a 10% baseline tariff on all countries, including India, with China also imposing reciprocal tariffs on the US. Notably, consumer electronics items, including smartphones and laptops, remain exempt from tariffs. However, Trump has threatened to impose a 25% tariff on all smartphone brands, particularly targeting Apple iPhones and Samsung handsets made outside the US, unless they are manufactured in America, the US media reported recently. Apple's vendors nearly doubled exports of iPhones from India in March–a majority to the US–to ₹20,000 crore, from ₹11,000 crore a year ago, ET reported in its April 7, 2025, edition. Recently, the International Data Corporation (IDC) projected that global smartphone shipments may grow by just 0.6% year-on-year to 1.24 billion units in 2025, down from the 2.3% year-on-year shipment growth it forecasted in February. 'Since April 2nd, the smartphone industry has faced a whirlwind of uncertainty. While current exemptions on smartphones have offered temporary relief, the looming possibility of broader tariffs presents a serious risk,' Nabila Popal, senior research director with IDC, said in a report separately. Popal added that despite complexities driven by geopolitical uncertainties and trade risks, India and Vietnam are expected to remain the key alternatives to China for smartphone production. 'However, additional tariffs of 20-30% on US-bound smartphones could post a serious downside risk to the current U.S. market outlook,' she had said. Laptop, PC makers also at risk Beyond smartphones, PC makers Dell, HP and Lenovo are also exposed to tariff risk. S&P said this is due to high input costs, from which tariffs are calculated, and high reliance on China for manufacturing laptops. Desktops, by contrast, are assembled across Asia and Mexico. The credit rating agency estimates the US PC sales contribute to about 15%-20% of the operating profit for each of Dell, HP and Lenovo. S&P noted that Dell's contract manufacturers have already shifted their production of US-bound PCs outside China, while HP is expected to do so by June-end. It, however, cautioned that shifting PC assembly to the US would not meaningfully offset tariff risks, unless components like processors, memory modules and display panels sourced from Taiwan, South Korea and China are tariff-exempted by the US.

Did Elon Musk use ketamine, ecstasy drugs? What Donald Trump said
Did Elon Musk use ketamine, ecstasy drugs? What Donald Trump said

Time of India

time27 minutes ago

  • Time of India

Did Elon Musk use ketamine, ecstasy drugs? What Donald Trump said

Elon Musk with Donald Trump (File photo) US President Donald Trump on Monday responded cautiously to recent reports alleging Elon Musk used recreational drugs while advising his administration, calling the claims troubling but unverified. "I really don't know. I don't think so," Trump told reporters on June 9 when asked whether Musk had brought drugs into the White House. "I hope not." The remark marks Trump's first major comment on the issue since The New York Times reported in late May that Musk had allegedly used ketamine, ecstasy, and psychedelic mushrooms while campaigning with Trump in 2024. The report cited unnamed sources. Musk swiftly responded to the allegations in a post on X: "You can tell immediately that someone is a massive liar if they're claiming I'm on drugs, as I am one of the most photographed people on Earth and am in meetings 7 days a week!" He added that he underwent random drug testing for nearly three years following a widely-publicized 2018 podcast appearance with Joe Rogan . "Not the slightest trace of drugs or alcohol was found." USA Today reported it remains unclear whether Musk used any substances while serving in an official capacity. When asked about it on his final day as a special government employee, Musk avoided the question, saying, 'Let's move on.' The drug allegations come amid a broader fallout between Trump and Musk. Their once-close relationship soured after Musk denounced Trump's tax and spending package as a 'disgusting abomination.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sanitize & Smooth Clothes Fast with Philips Steamer Philips Garment Steamers Shop Now Undo Trump retaliated by suggesting he might scale back federal contracts held by Musk's companies, while Musk hinted that Trump appeared in classified files related to convicted sex offender Jeffrey Epstein. Despite the tensions, signs of de-escalation have emerged. Trump took a softer stance when asked about Musk's satellite internet company, Starlink. 'It's a good service,' he said, indicating no plans to discontinue its use at the White House. He also struck a conciliatory note personally, saying: 'We had a good relationship, and I just wish him well.' The highly public spat has complicated Republican efforts to pass Trump's 'big, beautiful bill' in Congress, where the GOP holds narrow majorities. However, with Musk deleting earlier posts—some of which had supported impeachment—insiders suggest the billionaire may be ready to mend ties with the president.

Taiwan's semiconductor giant TSMC's revenue grows by 39.6% in May 2025 (YoY)
Taiwan's semiconductor giant TSMC's revenue grows by 39.6% in May 2025 (YoY)

India Gazette

time31 minutes ago

  • India Gazette

Taiwan's semiconductor giant TSMC's revenue grows by 39.6% in May 2025 (YoY)

ANI 10 Jun 2025, 13:04 GMT+10 New Delhi [India], June 10 (ANI): Taiwan's Multinational semiconductor company, Taiwan Semiconductor Manufacturing Company (TSMC) on Tuesday, reported a rise of 39.6 per cent (year on year) in its net revenue for May 2025. The company reported a net revenue of NTD 320.52 billion (USD 10.70 billion) for May 2025, as compared to NTD 229.62 billion (USD 7.67 billion) reported for May on a month-on-month basis, the revenue of TSMC declined by 8.3 per cent in May 2025 as compared with April's figure of NTD 349.57 billion (USD 11.67 billion).For the first five months of this year, the revenue of the company was at NTD 1,509.34 billion (USD 50.38 billion), which was nearly 43 per cent more than what was reported for the same period of the previous year. TSMC served over 500 customers worldwide in 2024, and it manufactured 11,878 products for various applications covering a variety of end markets, including high-performance computing, smartphones, the Internet of Things (IoT), automotive, and digital consumer to the company, the annual capacity of the manufacturing facilities managed by TSMC and its subsidiaries exceeded 16 million 12-inch equivalent wafers in 2024. Last month, the company reported a significant rise in revenue figures for April 2025, attributed to a surge in demand for advanced postponed the commencement of construction for its second wafer fabrication plant in Kumamoto, Japan, citing significant traffic issues impacting TSMC also confirmed that the company has no plans to establish a manufacturing plant in the Middle East, specifically dismissing rumours about building a chip foundry in the United Arab Emirates (UAE). (ANI)

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