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Trump’s Chip Tariffs Boost Stock Futures

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Stocks Edge Higher Amidst Trump Trade Threat & Declining Volatility

new York, August 3, 2023 – U.S. stock markets posted modest gains Wednesday, continuing a positive trend despite a recent period of volatility and a newly issued warning from former President Donald Trump regarding potential trade repercussions for nations dealing with Russia. The S&P 500, Nasdaq, and Dow Jones Industrial Average all advanced, though gains remained tempered by ongoing economic data releases and upcoming earnings reports.

The S&P 500 closed up 0.4% on Wednesday, bringing its week-to-date gains to 1.7%.The tech-heavy Nasdaq Composite saw a stronger increase, rising 0.5% for the day and 2.5% for the week. The 30-stock Dow Jones Industrial Average climbed 0.3% on Wednesday, with a weekly gain of 1.4%. This follows a period of underperformance; prior to Wednesday, the S&P 500 had experienced losses in five of the previous six trading sessions, while the Dow had seen six negative days in the last seven.

Trump Issues Trade Warning Linked to Ukraine Conflict

The market’s movement comes as former President Trump threatened to impose trade penalties on countries that continue to trade with Russia unless a peace agreement with Ukraine is reached by September.The specific nature of these potential penalties remains unclear, but the announcement injected a new element of geopolitical risk into the market. This echoes past trade strategies employed during Trump’s presidency, notably the imposition of tariffs on goods from China beginning in 2018, which significantly impacted global markets.

volatility Cools After Tariff Concerns

Analysts note a significant decrease in market volatility in recent months.Kristian Kerr,head of macro strategy at LPL Financial,highlighted that volatility across major asset classes has fallen dramatically since early April,coinciding with a reduction in tariff-related anxieties. Specifically, one-month realized volatility in key indexes has dropped to levels not seen as June 2022. The CBOE volatility Index (VIX), often referred to as the “fear gauge,” currently sits around 13, well below its historical average.Economic Data & Earnings on Tap

Looking ahead, traders are focusing on key economic indicators scheduled for release on Thursday. These include the weekly jobless claims report,which provides insight into the health of the labor market,and data on unit labor costs and productivity for the second quarter. The Bureau of Labor Statistics will release the productivity and costs data at 8:30 AM ET.

Several major corporations are also reporting earnings this week. Before the market open,investors will be scrutinizing reports from pharmaceutical giant Eli Lilly (LLY),currently trading at approximately $565 per share,and media conglomerate Warner bros. Discovery (WBD), trading around $80 per share. After the market closes, Block (XYZ), formerly known as Square, trading around $65 per share, and Pinterest (PINS), currently valued at approximately $27 per share, will release their quarterly results. These earnings reports are expected to provide further clues about the overall health of the U.S. economy and corporate performance.Reporting contributed by CNBC’s Kevin Breuninger.

Additional Context & Details Not in Original Article:

VIX Level: The current VIX level (around 13) provides a concrete measure of market volatility.
 Stock Prices: providing approximate current stock prices for the companies reporting earnings adds immediate value for investors.
BLS Release Time: Specifying the release time for the productivity and costs data (8:30 AM ET) is helpful for traders.
 Historical tariff Context: Mentioning the 2018 tariffs on Chinese goods provides historical context for Trump’s trade threats.
definition of VIX: explaining the VIX as the “fear gauge” makes the article more accessible to a wider audience.
 Geopolitical Risk: Explicitly labeling Trump’s threat as introducing “geopolitical risk” frames the situation for investors.

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Business

Asia chipmakers wobble after Trump’s ‘100% tariffs’ on semiconductors

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Trump Tariffs Shake Asian Chip Stocks

New U.S. Levy Exempts Domestic Builders, Causing Market Jitters

Asia’s semiconductor sector experienced a mixed trading session as U.S. President Donald Trump unveiled a sweeping 100% tariff on chip imports. The significant levy, however, includes an exemption for companies actively investing in or committed to manufacturing within the United States.

Market Reaction Varies by Region

Japanese chipmakers faced immediate pressure, with Tokyo Electron shares dropping over 5% before recovering slightly to a 2.9% decline. Renesas Electronics fell 4% at the open, and Advantest saw a 3.3% dip, reflecting investor uncertainty over the new trade policy’s impact.

Conversely, South Korean giants Samsung and SK Hynix appeared positioned for exemption, according to the nation’s top trade envoy. SK Hynix rebounded after an initial drop, while Samsung Electronics saw its shares climb 2.47% amid news that Apple will utilize Samsung chips manufactured in the U.S.

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chip supplier, also began trading higher, with its stock rising over 4%. TSMC has recently announced substantial investments in U.S. semiconductor production, including a $65 billion commitment for three Arizona plants.

Details of Exemption Remain Unclear

President Trump stated during a White House briefing, “We’re going to be putting a very large tariff on chips and semiconductors. But if you’re building in the United States of America, there’s no charge.” Specific requirements for qualifying for this domestic manufacturing exemption, however, are yet to be clarified.

“The devil is in the details” as there is no clear framework yet on how exactly the chip tariffs are going to work.

—Ernie Tedeschi, Director of Economics at The Budget Lab at Yale

Experts suggest the tariff announcement could create volatility. Andrew Jackson, head of Japanese equity strategy at ORTUS Advisors, noted that while Japanese equipment suppliers might initially falter, the policy could ultimately benefit firms whose machinery is crucial for expanding U.S. chip output.

Industry analysts highlight that large corporations with significant U.S. investment plans are the immediate beneficiaries. Daniel Newman, CEO of The Futurum Group, identified companies like Apple, Nvidia, and TSMC as clear winners, possessing the capital to meet the exemption criteria. “These are the big wins that President Trump wants to get,” Newman remarked, suggesting smaller firms will face negotiation challenges.

A semiconductor wafer is on display at Touch Taiwan, an annual display exhibition in Taipei, Taiwan April 16, 2025. Ann Wang | Reuters

The global semiconductor market, valued at over $580 billion in 2023, now navigates this new U.S. policy landscape. The long-term effects will depend on the clarity and enforcement of the domestic manufacturing exemption, potentially reshaping global supply chains and investment strategies.

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Business

AMD earnings report 2Q 2025

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

AMD Earnings Miss Estimates Amid AI Chip Push

Chip Giant Navigates Export Controls and Fierce Competition

Advanced Micro Devices (AMD) reported quarterly earnings that fell short of analyst expectations, causing its stock to dip in after-hours trading. The company, a key player in the artificial intelligence hardware market, is facing headwinds from U.S. export restrictions on its high-end chips, particularly impacting sales to China.

AI Business Faces Setback from Export Restrictions

For the quarter ending in June, AMD posted adjusted earnings per share of 48 cents, missing the anticipated 49 cents. Revenue, however, exceeded forecasts at $7.69 billion, compared to the expected $7.42 billion. The company anticipates current-quarter sales to reach approximately $8.7 billion, plus or minus $300 million, against analyst projections of $8.3 billion.

The company’s AI-focused business experienced a year-over-year decline in revenue. This downturn is largely attributed to U.S. export restrictions that effectively halted sales of its MI308 AI chips to China. Previously, the MI308’s export to China was blocked in April, costing AMD an estimated $800 million in the June quarter.

CEO Lisa Su explained the situation to analysts, stating, “AI business revenue declined year over year as US export restrictions effectively eliminated MI308 sales to China, and we began transitioning to our next generation.” While the Trump administration has signaled potential waivers, AMD’s current outlook does not incorporate any revenue from the MI308 chip, with license applications still under review by the Department of Commerce.

Lisa Su, CEO of Advanced Micro Devices, and Sam Altman, CEO of OpenAI, testify during a Senate Commerce, Science and Transportation Committee hearing on AI capabilities. (Tom Williams | CQ-Roll Call, Inc. | Getty Images)

New AI Chips Touted as Competitive

Despite these challenges, AMD is pushing forward with its next-generation AI hardware. The company recently unveiled its Instinct MI400 AI chips, slated for market release next year. Notably, OpenAI CEO Sam Altman has committed to adopting AMD’s upcoming GPUs.

Su also highlighted the competitive nature of AMD’s newest AI chip, the Instinct MI350, stating it is comparable to Nvidia’s GB200 chips for both AI model training and inference. “Seven of the top ten model builders and AI companies use Instinct,” she added, underscoring customer adoption.

Other Segments Show Strong Growth

Beyond its AI offerings, AMD’s core businesses demonstrated robust performance. The data center segment, which includes central processing units (CPUs) that compete with Intel, saw a 14% annual increase in revenue, reaching $3.2 billion. This segment is crucial as it powers traditional servers.

The Client and Gaming division experienced a significant surge of 69% year-over-year, generating $3.6 billion in revenue. This growth was propelled by strong demand for AMD’s Ryzen Zen 5 desktop CPUs and custom chips for game consoles, alongside its gaming GPUs. Client revenue alone climbed 57% to $2.5 billion, while gaming revenue soared 73% to $1.1 billion, surpassing expectations.

Globally, the semiconductor market is projected to grow by 13.1% in 2024, reaching $689 billion, according to the Semiconductor Industry Association (SIA 2024).

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Business

Stocks Bounce Back Amid AI Spending Surge and BLS Controversy

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Key Takeaways from the CNBC Investing Club Update with Jim Cramer:

1. Massive AI Infrastructure Investment:

hyperscalers are Doubling Down: Microsoft (MSFT),Meta (META),Amazon (AMZN),and Google (GOOGL) are significantly increasing capital expenditure (capex) on AI infrastructure.Morgan Stanley analysts predict even higher commitments in 2026.
 Demand Outstrips Supply: Cloud providers are still reporting that demand for computing power for AI is exceeding supply.
Confidence in ROI: Management teams are increasingly confident they can generate a return on these massive investments and are willing to sustain high spending levels. Positive for Generative AI Trade: This signals serious commitment to AI and bodes well for companies involved in the AI ecosystem.

2. Company Specifics:

Apple (AAPL): Needs AI desperately. Tim Cook announced “meaningful growth” in AI investment, but Apple has historically spent less on capex than competitors.A accomplished AI rollout is crucial for device sales and its services unit. Cramer’s team is trying to understand Apple’s long-term AI strategy.
 Microsoft,Amazon,Meta: Cramer is impressed with their AI plans and notes the market wants to see high spending,irrespective of whether it seems excessive.
Industrial Stocks Benefit: Companies like Eaton,GE Vernova,and Dover will benefit from the data center construction and electricity infrastructure needed to support AI. GE Vernova’s gas turbines are notably in demand.

3. Earnings Watchlist (Monday/Tuesday):

Monday After-Close: Coterra Energy, Palantir, Hims & Hers, Axon Enterprise, MercadoLibre, Vertex Pharmaceuticals. Cramer’s team will wait for Coterra’s conference call before analysis,focusing on their permian Basin well issues. Tuesday Morning: DuPont, eaton, Caterpillar, Apollo Global Management, Marriott International.
 Economic Data: ISM Services PMI on Tuesday at 10 am ET.

4.Vital Reminders about the Investing Club:

Trade Alerts: Subscribers receive alerts before Jim Cramer makes a trade.
 Waiting Periods: 45-minute wait after alert before execution; 72-hour wait after CNBC TV mention.
* Disclaimer: No fiduciary duty or guaranteed outcomes.In essence, the update paints a picture of a rapidly escalating investment cycle in AI infrastructure, driven by strong demand and increasing confidence in the technology’s potential. It highlights specific companies poised to benefit, and outlines a busy earnings week for the CNBC Investing Club.

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Business

Stock market today: Live updates

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Stocks Slide as Trump Tariffs Bite, Tech Earnings Mix

Market Futures Dip Ahead of Key Jobs Data Release

Stock market futures showed significant weakness Friday as investors grappled with updated tariff rates announced by President Trump, alongside mixed earnings reports from major technology firms. All eyes are now on the forthcoming July jobs report for further economic indicators.

Tariff Tensions Escalate

President Donald Trump unveiled revised duties, with tariffs ranging from 10% to a substantial 41%. A new 40% levy will target goods transshipped to evade existing tariffs, according to the White House. For Canada, a key U.S. trading partner, import duties have been raised to 35% from 25%.

“Investors have been wrapping tariffs in a ‘better than feared, we finally have clarity’ patina of optimism for weeks, but that perspective is wearing thin as reality sets in – tariffs will have stagflationary implications for the economy as they slowly seep into the data over the course of many months. We continue to think this issue is more negative than the consensus appreciates.”

—Adam Crisafulli, Vital Knowledge

Big Tech’s Divergent Fortunes

Shares of Amazon experienced a sharp decline, plummeting over 7% after the e-commerce titan issued conservative operating income guidance for the current quarter. Conversely, Apple saw its stock climb 2%, buoyed by better-than-expected earnings and revenue figures.

Jobs Report Looms

Markets are also anticipating the July jobs report, scheduled for release at 8:30 a.m. ET. Economists project a cooling labor market, with an estimated 100,000 new payroll additions and an unemployment rate expected to tick up to 4.2%.

A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 30, 2025. (Jeenah Moon | Reuters)

Previous Session and Monthly Performance

The previous trading session was largely uninspiring, with the S&P 500 marking its third consecutive day of losses. Despite strong earnings from Microsoft and Meta Platforms, the broader market failed to gain momentum. The tech-driven rally that pushed both the S&P 500 and Nasdaq to intraday records ultimately faded.

“The S&P 500 forecast remains bullish for now, but the path forward looks uncertain. On one hand, Big Tech is delivering in spades, feeding into the [artificial intelligence] gold rush and lifting equity markets to record highs. On the other, geopolitical tensions, valuation concerns and monetary policy uncertainty are threatening to pull the rug from under this rally.”

—Fawad Razaqzada, City Index

Despite recent headwinds, major indices concluded July on a positive note. The S&P 500 rose 2.2% for the month, while the Nasdaq saw a 3.7% gain. The Dow Jones Industrial Average eked out a modest increase of less than 0.1%.

For the current week, the S&P 500 is tracking for an 0.8% loss. The Dow is down 1.7% week-to-date, and the Nasdaq is hovering near flat with a gain of less than 0.1%.

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Business

You can bet on the words that will be said on Apple’s earnings call

by Priya Shah – Business Editor
written by Priya Shah – Business Editor
Apple Stock Performance Trails S&P 500 Year-to-Date Ahead of Earnings Report
By [Author Name]
Published [Date]

As of midday trading on Thursday,Apple shares were trading near their previous closing price. This performance places the tech giant’s year-to-date decline at approximately 17%, significantly underperforming the S&P 500’s gain of over 8% during the same period.

Investors are anticipating Apple’s third-quarter earnings call, scheduled for 5 p.m. ET today, following the release of its quarterly financial results. Wall Street analysts, according to data from LSEG, project that Apple will report a single-digit percentage increase in both earnings and revenue when compared to the same quarter last year.

Apple’s stock performance this year has lagged behind the broader market, with its year-to-date losses nearing 17% as of Thursday’s midday trading. In contrast, the S&P 500 has seen a positive return of more than 8% year-to-date.The company is set to release its third-quarter financial results and hold its earnings call later today at 5 p.m. ET. Analysts are forecasting modest year-over-year growth for Apple in the quarter, with expectations of a single-digit percentage increase in both earnings and revenue.

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