TL;DR

Trump launches sweeping tariffs; Fed independence questioned; Apple, Amazon beat amid tariff, AI headwinds.

Highlights

• Trump imposes new tariffs of 10–41% on imports from nearly 70 countries; Canada’s non-USMCA goods hit with a 35% rate, Switzerland at 39% (pharma excluded), and EU faces a potential 30% levy with talks ongoing 1758.
• Trump urges the Fed Board to oust Chair Powell unless rates are cut, raising concerns about central bank independence 2.
• Apple projects September-quarter revenue above estimates despite $1.1B in new tariff costs; iPhone sales surged as buyers moved ahead of tariff hikes. CEO Cook signals ramped-up AI investment and openness to acquisitions 36.
• Amazon beats Q2 revenue and EPS estimates, but shares drop 8% pre-market on AWS margin compression and higher AI capex; major banks raise price targets 418.
• F5 Networks reports strong Q3 results, raises Q4 guidance; analysts hike price targets 18.
• Bitcoin ends July at a record $115,700, up 10.4% for the month; August historically weak for crypto and equities 1213.
• South Korea’s KOSPI drops 3% on tax hike plans and U.S. tariffs, dragging down Asian tech shares 10.
• Figma triples in NYSE debut, closing near $60B valuation, signaling strong demand for tech IPOs 11.
• China’s NDRC signals more stimulus to support jobs, consumption, and AI sector growth 9.
• XPeng leads July China EV deliveries, while Li Auto ’s sales drop 40% YoY, highlighting sector competition 14.
• UK Supreme Court to rule on car finance mis-selling, with potential multibillion-pound impact for banks 15.
• Trump envoy visits Gaza to assess aid routes amid stalled cease-fire talks 17.

Commentary

US markets face a complex backdrop as Trump’s sweeping tariffs take effect, targeting a wide range of trading partners with rates up to 41% 18. The move raises input costs for US manufacturers and importers, heightens the risk of retaliatory measures (notably from the EU), and injects uncertainty into global supply chains 58. The short grace period before implementation and ongoing negotiations with the EU and others mean traders should expect headline-driven volatility, especially in sectors with heavy international exposure such as autos, tech, and industrials 58.

The President’s public pressure on the Federal Reserve—calling for the Board to sideline Powell unless rates are cut—adds another layer of risk for rates and FX markets 2. Any perceived threat to Fed independence could move Treasury yields and the dollar, with traders watching for signs of a policy shift or institutional pushback 2.

On the corporate front, Apple ’s ability to guide above expectations despite $1.1B in new tariff costs 3 and Amazon ’s Q2 beat (overshadowed by AWS margin pressure and rising AI capex) 418 highlight both the resilience and challenges facing US tech. Analysts remain constructive on Amazon ’s long-term prospects, and Apple ’s pivot to more aggressive AI investment and potential M&A is notable given its cash position 6. Figma’s blockbuster NYSE debut signals renewed risk appetite for high-growth tech IPOs, which could support broader sentiment if volatility remains contained 11.

Elsewhere, Bitcoin ’s record July close and F5’s strong results offer bright spots, but both face seasonally weaker Augusts 121318. Asian markets are under pressure from South Korea’s tax overhaul and the ripple effects of new US tariffs, with tech names particularly affected 108. China’s NDRC is preparing further stimulus, which could eventually support global demand, but immediate impacts are limited 9.

Traders should monitor tariff implementation details, Fed commentary, and retaliatory trade moves. Key sectors to watch include tech, autos, and industrials, while rates and FX could react sharply to any Fed-related developments 1258.