Trump vows 100% Chip Tariff 07/08/2025

HOT stories for today

US market wrap:

• Stocks advanced on Wednesday, lifted by a powerful rally in Apple, as investors digested a fresh wave of corporate earnings. The S&P 500 ticked up 0.73%, while the Nasdaq Composite surged 1.21%. The Dow Jones Industrial Average added 81.38 points, or 0.18%. Apple shares jumped 5% after a White House official told CNBC the tech titan is ramping up its domestic manufacturing efforts with a $100 billion investment, bringing its total U.S. spending to $600 billion over the next four years. 
• Meanwhile, the earnings season is charging ahead, with a solid 81% of S&P 500 companies that have reported so far beating analyst expectations, per FactSet data. Not all was rosy: Snap plunged 17% after its revenue slightly underwhelmed, and Advanced Micro Devices dropped over 6% after delivering adjusted earnings per share that missed forecasts.

Trump vows 100% Chip Tariff

• Donald Trump on Wednesday vowed to impose a 100 percent tariff on imported semiconductors unless companies are manufacturing in the United States. He pointed to Apple’s new $100 billion investment as a model, saying companies building in America would be exempt. Details on what qualifies for the exemption remain unclear, but Trump indicated the tariffs could take effect as early as next week.
• Several major chipmakers have already expanded U.S. operations. TSMC plans to invest $165 billion in American facilities. Nvidia has committed $500 billion to U.S. AI infrastructure. GlobalFoundries pledged $16 billion for domestic expansion, and Texas Instruments recently announced a $60 billion boost to its chip manufacturing capacity. According to the Semiconductor Industry Association, more than 130 chip-related projects totaling $600 billion have been launched in the U.S. since 2020.

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Stocks on the move:

• DraftKings (DKNG) rose around 2% after the sports betting firm reported Q2 earnings of $0.30 per share, beating LSEG estimates of $0.15. Revenue reached $1.51 billion, topping expectations of $1.41 billion. DraftKings reaffirmed its 2025 revenue forecast of $6.2–$6.4 billion, guiding toward the higher end of the range.
• Airbnb (ABNB) fell roughly 7% as its Q3 revenue outlook of $4.02–$4.10 billion came in mixed against analysts’ target of $4.05 billion, despite beating Q2 earnings and revenue expectations.
• Fortinet (FTNT) dropped 17% after the cybersecurity firm posted Q2 revenue of $1.63 billion, in line with FactSet forecasts, but issued weaker-than-expected guidance for the third quarter.
• DoorDash (DASH) climbed 6% following a strong Q2 report, with earnings of $0.65 per share topping LSEG projections of $0.44. Revenue came in at $3.28 billion, ahead of the expected $3.16 billion.

Watchlist: ABNB, DKNG, FTNT, DASH, DUOL, BROS, AMD, LLY, PINS, SQ

Today’s action

• Asia-Pacific markets mostly advanced after former President Donald Trump pledged a 100% tariff on semiconductor imports, with exemptions for companies manufacturing in the U.S. Specifics on the exemption threshold remain unclear. Japan’s Topix briefly hit a record high, while Taiwan’s market surged over 2% on optimism surrounding domestic chip production.
• In the U.S., stock futures ticked higher early Thursday as investors weighed Trump’s tariff move. Dow futures rose 40 points, or less than 0.1%, while S&P 500 and Nasdaq 100 futures gained 0.26% and 0.28%, respectively. Traders now await key economic data, including weekly jobless claims, Q2 labor costs, and productivity figures. On the earnings front, Eli Lilly (LLY) and Warner Bros. Discovery (WBD) report before the bell, with Block (SQ) and Pinterest (PINS) set to follow in the afternoon.

Bitcoin

• Bitcoin is holding steady around $114,700, trading within a narrow range amid low volume. It remains above key support near $112,800, with recent highs at $123,100. The UK will allow retail crypto ETNs starting October, boosting access to Bitcoin and Ethereum. Tornado Cash co-founder Roman Storm was partially acquitted but convicted for running an unlicensed crypto business.
• A Coinbase ad was banned in the UK, sparking a free speech debate. Bitcoin ETFs saw renewed inflows, Ethereum briefly topped $3,700, and Tom Lee projects ETH could reach $16,000. BlackRock moved large crypto positions, and Layer-2 tokens like POL and Mantle jumped over 8%.
  Watchlist: BTC: 99,000–123,000 | ETH: 3,000–3,800 | SOL: 200–260

Forex

• The Japanese Yen (JPY) remains under pressure in Thursday’s Asian session amid reports that former President Donald Trump may slap a 15% tariff on all Japanese imports. Coupled with uncertainty over the Bank of Japan’s next rate move and a broadly risk-on market mood, the JPY has attracted fresh selling. The USD/JPY pair holds steady near 147.50, supported by a mild USD rebound from recent lows.
• Meanwhile, EUR/USD is trading slightly higher near 1.1665, as expectations for a September Fed rate cut grow following soft U.S. job data. The pair also drew support from stronger-than-expected Eurozone retail sales, which rose 3.1% YoY in June. Markets now look ahead to German industrial production, the ECB’s Economic Bulletin, and U.S. jobless claims for further cues.
  Watchlist: EUR/USD: 1.1000–1.1650 | USD/JPY: 140–162

Basic Materials

• Gold (XAU/USD) is rebounding in the Asian session, trading higher as Trump’s renewed tariff threats drive safe-haven demand. Growing expectations for a Fed rate cut in September are also supporting the non-yielding metal. However, gains are capped by a mild USD recovery and a generally positive risk tone in markets.
• WTI Crude is holding firm around $63.75, recovering from a five-week low after the EIA reported a 3.03 million-barrel drop in U.S. crude inventories. Price support also comes from geopolitical tensions, as Trump threatens new tariffs on India and China over their Russian crude imports, raising fears of supply disruptions.
  Watchlist: Gold: 2,600–3,500 | US Oil: 55.60–75.80

Economic Calendar (EST):

08:30 am: Unemployment Claims
10:00 am: Final Wholesale Inventories
10:00 am: FOMC Member Bostic Speaks
04:00 pm: President Trump Speaks


Earnings:

LLY                    Eli Lilly and Company
COP                   ConocoPhillips
VST                    Vistra Corp.
CEG                   Constellation Energy
DDOG                Datadog Inc.

AMC (After Market Close): MNST, TEAM, GILD, MSI


The TEFS Analyst team wishes you a successful day!