TL;DR

Apple, Amazon, Alphabet beat; U.S. sets 15% Korea tariff; Trump targets drug prices, pharma pressured.

Highlights

• U.S. to impose 15% tariff on all South Korean imports; Seoul commits $350B to U.S. investments and $100B in American energy purchases 1.
• Alphabet , Amazon , and Apple beat earnings estimates; all highlight rising AI-related capital spending 29.
• Apple warns tariffs will add $1.1B to September costs, with two-quarter impact near $2B; accelerating supply chain shift to India and Vietnam 5.
• Trump orders 17 major drugmakers to match U.S. prices to lowest overseas levels within 60 days, raising pharma sector uncertainty 4.
• Coinbase launches "everything exchange" for tokenized stocks and derivatives; SEC starts updating securities rules for blockchain trading 6.
• Coinbase Q2 profit jumps on investment gains, but revenue misses; shares fall 8% post-market 7.
• Reddit shares rise 10% after 78% revenue growth and strong Q3 outlook; user and ad growth accelerate 11.
• Cloudflare beats Q2 estimates, raises 2025 outlook; shares hit all-time high on 28% revenue growth 12.
• Roku posts surprise Q2 profit, raises 2025 guidance, and announces $400M buyback; platform revenue and ad demand up 14.
• First Solar beats Q2 estimates, raises 2025 revenue forecast, and reports strong bookings; shares up 4–5% post-market 15.
• U.S. Army signs up to $10B software deal with Palantir , consolidating 75 contracts for data analytics and AI 8.
• U.S. keeps 35% Canada tariff threat alive; U.S.–EU trade talks stall on metals and digital taxes 13.

Commentary

Tech earnings continue to anchor market sentiment, with Alphabet , Amazon , and Apple all beating expectations and signaling ongoing investment in AI infrastructure 29. Apple ’s strong quarter was tempered by a disclosure of nearly $2B in tariff costs over two quarters, and a warning that September expenses will rise further if trade policy holds 5. The company is moving more manufacturing to India and Vietnam, but supply chain risk remains tied to tariff developments 5.

Trade policy is again in focus. The U.S.–South Korea agreement averts a steeper tariff but locks in a 15% rate, while Canada faces a 35% tariff threat if talks fail 113. U.S.–EU negotiations remain unresolved on metals and digital taxes 13. These moves increase cost uncertainty for multinationals, especially in tech, autos, and industrials. Pharma stocks face a new overhang after Trump’s directive for 17 major drugmakers to match the lowest global prices in the U.S. within 60 days, though enforcement and legal authority are unclear 4.

In crypto and fintech, Coinbase ’s profit jump was driven by investment gains, but a revenue miss and cautious trading outlook sent shares down 8% after hours 7. The launch of its "everything exchange" and the SEC’s willingness to update securities rules for blockchain trading could have longer-term implications for market structure and competition with traditional brokerages 6.

Growth and tech-adjacent names outperformed after hours: Reddit surged on strong user and revenue growth 11, Cloudflare raised guidance and hit all-time highs 12, Roku posted a surprise profit and buyback 14, and First Solar delivered a beat and raised its outlook 15. Palantir ’s $10B Army contract consolidates government software spending, supporting the U.S. defense tech sector 8.

Traders should monitor tariff headlines, pharma sector responses, and any signals on U.S. trade or monetary policy. The market remains sensitive to supply chain and cost risks, even as tech and growth names show resilience.