- US Stock Futures, Dollar Retreat on Trade Jitters: Markets Wrap
US equity-index futures edged down along with the dollar after President Donald Trump dialed-up trade
tensions once again with a 50% tariff on copper and issued a new round of letters imposing higher levies on
countries. Contracts for the S&P 500 index fell 0.2% and a gauge of the dollar dipped by 0.1% Thursday. Asian
shares were flat. Bitcoin held near a record high it hit on Wednesday. Earlier, Brazilian assets plunged after
Trump announced new tariff letters, including imposing 50% levy on goods from the country. - S&P 500 rises as Nvidia leads Big Tech rally, Nasdaq closes at a record
The S&P 500 rose Wednesday as Nvidia reached a major milestone and investors monitored the latest tariff
updates from President Donald Trump. The broad market benchmark climbed 0.61%, ending the session at
6,263.26, and the Nasdaq Composite advanced 0.94% for a record close of 20,611.34. The Dow Jones Industrial
Average added 217.54 points, or 0.49%, ending at 44,458.30. Nvidia shares added 1.8% and the chip giant
briefly hit a market capitalization of $4 trillion, becoming the first company to do so. Other major tech names
also rose — including Meta Platforms, Microsoft and Alphabet — nodding to a rekindling in appetite for the
artificial intelligence theme. - Oil falls as Trump’s expanded tariffs cloud demand outlook
Oil prices dropped on Thursday as the latest tariff announcements by U.S. President Donald Trump were
perceived by market participants to threaten global economic growth and demand for the resource.
Brent crude futures were down 22 cents, or 0.31%, at $69.97 a barrel by 0052 GMT. U.S. West Texas
Intermediate crude lost 27 cents, or 0.39%, to $68.11 a barrel. On Wednesday, Trump threatened Brazil, Latin
America’s largest economy, with a punitive 50% tariff on exports to the U.S., after a public spat with his
Brazilian counterpart Luiz Inacio Lula da Silva. Earlier, Trump announced plans about tariffs on copper,
semiconductors and pharmaceuticals and his administration sent tariff letters to the Philippines, Iraq and
others, adding to over a dozen of letters issued earlier in the week including for powerhouse U.S. suppliers
South Korea and Japan. As policymakers remain worried about the inflationary pressures from Trump’s tariffs,
only “a couple” of officials at the Federal Reserve’s June 17-18 meeting said they felt interest rates could be
reduced as soon as this month, the minutes released on Wednesday showed. Higher interest rates make
borrowings more expensive and reduce demand for oil. Providing some support to prices, U.S. crude
stocks rose while gasoline and distillate inventories fell last week, the Energy Information Administration said
on Wednesday. Gasoline demand rose 6% to 9.2 million barrels per day last week, the EIA said. Global daily
flights were averaging 107,600 in the first eight days of July, its all-time high, with flights in China reaching a
five-month peak with port and freight activities indicating ‘sustained expansion’ in trade activities from last
year, J.P. Morgan said in a client note. “Year to date, global oil demand growth is averaging 0.97 million barrels
per day, in line with our forecast of 1 million barrels per day,” the note said. - Gold edges higher on softer dollar, trade war intensifies
Gold prices edged higher on Thursday, helped by a slight retreat in the dollar and bond yields, while investors
kept a close tab on trade negotiations as U.S. President Donald Trump broadened his tariff war. Spot gold rose
0.3% to $3,322.46 per ounce by 0157 GMT. U.S. gold futures were up 0.3% at $3,331. Trump launched his
global tariff assault into overdrive on Wednesday, announcing a new 50% tariff on U.S. copper imports and a
50% duty on goods from Brazil, both to start on August 1. Trump also issued tariff notices for seven minor
trading partners on Thursday, adding to 14 others issued earlier in the week, including South Korea and Japan,
with 25% levies set to take effect on August 1 unless agreements are reached. Meanwhile, Trump said trade
talks have been going well with China and the European Union, which is the biggest bilateral trading partner of
the U.S. “The market impact of tariffs seems to lessen with each new headline. Tariff fatigue is here, and traders
need a new catalyst to awaken volatility from its lull,” said Matt Simpson, a senior analyst at City Index. The
U.S. dollar index edged down 0.3%, while the yield on benchmark 10-year U.S. Treasury notes retreated from
a three-week high. Lower yields reduce the opportunity cost of holding non-yielding bullion, while a weaker
dollar makes gold cheaper for holders of other currencies. Minutes of the Federal Reserve’s June 17-18
meeting showed that only “a couple” of Fed officials believed interest rate cuts could happen as early as this
month, with most favoring reductions later this year due to inflation concerns tied to Trump’s tariff policies.
The Federal Open Market Committee unanimously voted to hold rates steady at its June meeting, with the next
policy meeting scheduled for July 29-30. Spot silver edged up 0.2% to $36.41 per ounce. - Trump sends more letters dictating high tariff rates around the world
President Donald Trump on Wednesday sent letters dictating new U.S. tariff rates on at least six more
countries’ imports, leaning into his aggressive approach to resetting America’s global trade relationships. The
latest letters, revealed by Trump via Truth Social screenshots, were sent to the leaders of the Philippines,
Brunei, Moldova, Algeria, Iraq and Libya. Trump had teased the announcement Tuesday evening, writing on
the social media site that he will release a “minimum of 7 Countries” on Wednesday morning and an “additional
number of Countries” in the afternoon. The new round of tariff letters comes two days after Trump first shared
screenshots of letters telling 14 countries’ leaders that their exports to the U.S. would face steep new tariffs
starting Aug. 1. The nearly identical two-page letters signed by Trump were sent to Japan, South Korea,
Malaysia, Kazakhstan, South Africa, Laos, Myanmar, Bosnia and Herzegovina, Tunisia, Indonesia, Bangladesh,
Serbia, Cambodia and Thailand. The rates for each country range from 20% to 40%. The letters note that the
U.S. will “perhaps” consider adjusting the new tariff levels, “depending on our relationship with your Country.”
Many of those rates are close to what Trump had imposed as part of his “liberation day” tariff rollout on April
2, which set a 10% baseline levy for nearly all countries on earth and slapped much higher duties on dozens of
individual nations. - Trump says 50% tariff on copper imports will begin Aug. 1
The decision was made after he received a national security assessment, U.S. President Donald Trump said in
a post on Truth Social. Copper prices rose 2.62%, following Trump’s latest announcement. The U.S. imports
nearly half of the copper it uses. - European Union in limbo as Washington keeps it waiting on a trade agreement
The European Union (EU) is stuck in limbo as uncertainty persists around when a trade agreement with the
U.S. might be reached. The goal had been to agree on a framework by July 9, when a temporary reprieve from
U.S. President Donald Trump’s “reciprocal” tariffs was initially meant to expire. The EU was seemingly still
working to this timeline earlier in the week. But that deadline has now passed — without the trading partners
coming to an agreement. A framework may however still be established as soon as this week, Trump himself
suggested Tuesday. “We’re probably two days off from sending them a letter. We are talking to them,” he said,
suggesting that a letter being sent would mean a deal, or decision on tariffs, has been reached. Trump said on
social media on Monday that letters had been sent to 14 countries outlining new tariff rates, with the EU so
far not receiving such a communication. But Trump also indicated that communications between the EU and
U.S. had improved. “They treated us very badly until recently, now they’re treating us very nicely. It’s like a
different world,” he told a Cabinet meeting at the White House on Wednesday. “They were among the
toughest to deal with.” This marked a shift in tone from Trump, who has often taken issue with the trade
relationship between Washington and Brussels, suggesting that is unfair and unbalanced. According to
the European Council, trade between the EU and U.S. was valued at around 1.68 trillion euros ($1.97 trillion)
when accounting for both goods and services in 2024. The EU recorded a surplus when it comes to goods
trading, but logged a deficit in the services trade, leaving its overall trade surplus at around 50 billion euros last
year. U.S. Commerce Secretary Howard Lutnick meanwhile also suggested a deal was on the table. - Most Fed officials see rate cuts coming, but opinions vary widely on how many, minutes show
Federal Reserve officials diverged at their June meeting about how aggressively they would be willing to cut
interest rates, split between concerns over tariff-fueled inflation and signs of labor market weakness and
economic strength. Minutes from the June 17-18 meeting released Wednesday showed that policymakers
largely held to a wait-and-see position on future rate moves. The meeting ended with Federal Open Market
Committee members voting unanimously to hold the central bank’s key borrowing rate in a range between
4.25%-4.5%, where it has been since December 2024. However, the summary also showed a growing divide
over how policy should proceed from here. “Most participants assessed that some reduction in the target range
for the federal funds rate this year would likely be appropriate,” the minutes said, as officials saw tariff-induced
inflation pressures as potentially “temporary and modest” while economic growth and hiring could weaken.
How far the cuts could go, though, was a matter of debate. - Linda Yaccarino steps down as CEO of Elon Musk’s X
Linda Yaccarino is stepping down as CEO of Elon Musk’s X, she announced in a post. Musk hired Yaccarino as
CEO of X in May of 2023, months after he purchased the social blogging site Twitter for $44 billion. Yaccarino
did not give a reason for her departure. - Airbus shares rose 1.9%, hitting a fresh record high, after the planemaker said it delivered 63 aircraft to
customers in June
Analysts say it will need to deliver an uplift in production in the second-half to meet its annual target, although
CIC and Jefferies see this as achievable. Rival Boeing also released numbers for June and said it delivered 60
aircraft, marking its best result in 18 months. - British American Tobacco shares rose 2% after Jefferies named the firm as its top pick as it reinstated
coverage of the global tobacco sector. US firm Altria was assigned an underperform rating due to structural
tailwinds and a demanding valuation
Analyst Andrei Andon-Ionita is buy on BAT, Imperial Brands and Philip Morris, and starts Japan Tobacco with a
hold rating. Estimates low single digit growth for global nicotine from combustibles, and additional low single
digit growth from next generation products. Andon-Ionita says the sector “sits in the sweet spot of Staples,”
offering solid growth, defensive positioning, strong cash returns and still-attractive valuations. BAT offers scope
for further improvement and trades at a significant discount to the wider tobacco sector, Philip Morris is
Jefferies’ growth pick, Imperial Brands has good cash returns and is viewed as cheap, while Japan Tobacco’s
valuation prevents a more positive stance. - Rivian-backed EV startup Also valued at $1 billion after Greenoaks investment – Bloomberg
Rivian Automotive (NASDAQ:RIVN) Inc.-backed startup Also Inc. has reached a $1 billion valuation following a
$200 million investment from Greenoaks Capital, according to a report from Bloomberg, citing people familiar
with the matter. Also Inc., which focuses on developing small electric vehicles, was spun out of Rivian earlier
this year with initial funding of $105 million from the automaker and venture capital firm Eclipse. Rivian has
maintained a minority stake in the company. Unlike Rivian, which manufactures full-size electric vehicles for
consumers, Also describes itself as a “micromobility” company creating smaller vehicles designed for short
trips. The startup has not yet disclosed specific details about its upcoming vehicles, but has indicated its
technology platform will support various products including e-bikes, three- and four-wheel vehicles,
neighborhood EVs, and micro cars. - Nvidia hits $4 trillion market cap, first company to do so
Nvidia stock jumped Wednesday and pushed the company past a $4 trillion market cap for the first time ever.
The chipmaker is the first company to achieve this milestone and has benefited from the generative AI boom.
The recent rally in Nvidia has come despite geopolitical tensions and ongoing chip curbs that have hampered
sales to China.
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