TL;DR

US-EU trade deal finalized; Trump pressures Fed for rate cuts; Walmart, Boeing, Coty move on earnings.

Highlights

• US and EU formalize trade deal: 15% US tariff on most EU goods; EU to remove industrial duties and commit to $750B US energy and $40B AI chip purchases; auto tariff relief pending 1.
• President Trump intensifies pressure on Fed Chair Powell to cut rates, threatens firing; Fed officials (Schmid, Bostic) signal no rush to ease, citing sticky inflation and data uncertainty 289.
• Walmart raises full-year sales outlook after revenue beat, but profit misses and shares fall 2.5–4% on tariff and legal costs 6.
• Boeing stock up 2.6% on reports of talks to sell up to 500 jets to China 5.
• Russia launches major drone and missile attack on western Ukraine, damaging US-owned Flex plant; Ukraine hits Russian oil refinery, prompting Moscow to suspend petrol exports 4.
• Chinese regulators move to restrict Nvidia H20 AI chip purchases; Chinese tech firms accelerate shift to domestic AI chips 3.
• Meta freezes AI hiring after surge in recruitment costs and investor scrutiny of AI spending 7.
• Coty plunges up to 24% pre-market after surprise loss and warning of up to 8% sales decline 12.
• Crypto: Kanye West’s YZY token peaks at $3B before sliding; MetaMask to launch Stripe-issued mUSD stablecoin; Strategy Inc. adds 430 Bitcoin, loosens share-sale rules 111418.
• Nasdaq delists Windtree Therapeutics after failed BNB pivot; shares move OTC 13.
• Eurozone PMI at 15-month high, led by German manufacturing rebound despite ongoing US tariffs 16.

Commentary

US-European trade relations move forward with a formalized deal, offering clarity for industrials, energy, and tech exporters 1. The EU’s commitment to large-scale US energy and AI chip purchases, alongside tariff reductions, is positive for select US sectors, though the auto tariff remains a near-term question 1. Ongoing negotiations on digital trade and metals suggest the agreement will continue to evolve, but the immediate effect is to reduce uncertainty for cross-Atlantic trade 1.

Monetary policy remains a key market risk. President Trump’s public pressure on Fed Chair Powell ahead of Jackson Hole increases headline risk 2, but Fed officials are signaling patience, with no imminent rate cuts as inflation remains above target 8. The labor market is described as balanced, but Bostic’s comments on lower replacement job growth and data volatility suggest that economic releases may see more frequent revisions, which could impact rate expectations and market swings 9.

In equities, Walmart ’s revenue beat and raised outlook are overshadowed by margin pressures from tariffs and legal costs, leading to a share decline 6. Boeing’s potential China deal offers a rare positive for US industrials, but the outcome remains uncertain amid broader US-China tech tensions, highlighted by China’s move to restrict Nvidia AI chip purchases 53. Meta ’s AI hiring freeze and Coty’s sharp profit warning further illustrate sector-specific cost and demand pressures 712.

Geopolitical risks remain elevated. The Russian attack on Ukraine damaged a US-owned Flex plant and led to a Russian suspension of petrol exports, which could add volatility to energy markets 4. In crypto, new product launches (YZY, mUSD) and continued institutional accumulation (Strategy Inc.) show ongoing sector activity, but regulatory and liquidity risks persist 111418. The Nasdaq delisting of Windtree after a failed crypto pivot underscores ongoing challenges for digital asset-linked equities 13.

Eurozone PMI data suggest a modest rebound in European manufacturing, led by Germany, but the recovery remains tentative given recent GDP contraction and persistent US tariffs 16. Overall, traders should monitor Fed commentary, US-EU trade implementation, energy price moves, and sector-specific headlines for near-term market direction.