Dow futures are experiencing a slight decline as investors evaluate the latest developments in President Donald Trump’s persistent tariff strategy. Brazil has become the most recent focus of Trump’s tariffs, as the president criticizes the country for its handling of a political associate. Elsewhere, minutes from the Federal Reserve’s latest meeting suggest that policymakers believe interest rate cuts could be appropriate this year, while WK Kellogg shares spike after-hours following a report that Ferrero is nearing a purchase of the cereal maker.

Dow futures contract experienced a decline of 125 points, representing a decrease of 0.3%. Meanwhile, S&P 500 futures fell by 15 points, or 0.2%, and Nasdaq 100 futures saw a reduction of 47 points, also reflecting a 0.2% drop. The principal indices on Wall Street experienced an uptick in the previous session, supported by the release of meeting minutes from the Federal Reserve that ignited optimism regarding potential interest rate cuts later this year. Amid the gains, shares of artificial intelligence-darling Nvidia jumped by 1.8%, giving it a market capitalization of $3.97 trillion. During the session, the company briefly achieved the distinction of being the first to reach a market value of $4 trillion. Nvidia’s increase propelled the tech-heavy Nasdaq Composite to achieve an all-time closing high. “The significant factor behind the recent advance is the prevailing belief that tariffs will either be mitigated from their current threat levels or will have a minimal impact on inflation, while other sectors of the economy contribute to an overall disinflationary trend, thereby creating an opportunity for the Fed to consider resuming policy easing,” analysts at Vital Knowledge noted in a communication to clients.

Nonetheless, Trump’s ongoing trade conflicts have resulted in a degree of caution among investors regarding the overall direction of the economy. In the most recent development amid a series of trade-related announcements this week, the president indicated his intention to impose a 50% tariff on all imports from Brazil. The levies, set to take effect on August 1, were partly a reaction to Trump’s dissatisfaction with what he viewed as the unfair treatment of former Brazilian President Jair Bolsonaro, his political ally in South America. In a letter addressed to Brazil’s current President Luiz Inácio Lula da Silva, Trump characterized the treatment of Bolsonaro, who is undergoing a trial for allegedly attempting to execute a coup, as “an international disgrace.” The 50% levies represent the highest rate among a series of letters dispatched by Trump this week, which were prompted by his choice to delay the deadline for the enforcement of his so-called “reciprocal” duties to August 1. The implementation was initially scheduled for Wednesday, following a temporary suspension in April. Analysts have posited that the action is driven more by political considerations than by trade-related concerns. Brazil ranks as the 15th-largest trading partner of the United States and stands out as a net importer of American goods. In a separate statement, Trump reiterated his intention to impose a 50% tariff on imported copper, echoing comments he made earlier in the week. Trump stated on his social media platform that he had obtained a national security report highlighting the significance of the red metal.

Trump’s tariffs continue to be a significant factor contributing to an increase in widespread uncertainty, which has negatively impacted consumer confidence and complicated investment choices for businesses. The Federal Reserve has identified the levies as a significant factor influencing its decision to predominantly maintain a wait-and-see approach regarding prospective interest rate cuts. Numerous economists have indicated that the tariffs may elevate inflationary pressures and hinder growth. Minutes from the Fed’s latest gathering in June seemed to reinforce this sentiment, with the document indicating that only “a couple” of policymakers deemed it suitable to contemplate reducing borrowing costs as early as this month. The remarks arise amidst Trump’s ongoing criticism of Chair Jerome Powell for his reluctance to expedite interest rate cuts, with Trump even suggesting Powell should resign. Powell has largely maintained his commitment to a more cautious Federal Reserve approach in recent weeks, yet he has suggested that a rate cut remains a possibility this year. The minutes revealed that a majority of participants at the Fed meeting anticipated a drawdown to be suitable later in 2025, with price shocks stemming from tariffs expected to be characterized as “temporary or modest.”

WK Kellogg’s shares experienced a notable increase in after-hours trading following a report from the Wall Street Journal indicating that the family-owned Italian confectionery company Ferrero is nearing a deal valued at approximately $3 billion to acquire the cereal manufacturer. The Wall Street Journal, citing sources familiar with the matter, reported that Ferrero, known for its brands such as Ferrero Rocher and Nutella, may finalize the acquisition of WK Kellogg as early as this week, provided there are no last-minute complications in the negotiations. A potential agreement would unite Ferrero with WK Kellogg, the company renowned for its breakfast cereals such as Froot Loops and Rice Krispies, which have established themselves as mainstays in supermarkets. Ferrero is actively pursuing acquisitions in the U.S. as it seeks to enhance its international presence and diversify its product range. The company has previously acquired Blue Bunny-manufacturer Wells Enterprises as well as the U.S. chocolate division of rival Nestle. WK Kellogg, a consequence of Kellogg’s divestiture of its North American cereal operations approximately two years prior, is encountering a transformation in consumer behavior influenced by inflationary pressures and an increasing focus on health among shoppers.

Taiwan Semiconductor Manufacturing Co on Thursday posted a 39% jump in second-quarter sales, surpassing market expectations due to robust global demand for AI chips. According to the company’s monthly sales, the total figure for the April-June period reached NT$933.8 billion, surpassing LSEG estimates of NT$927.83 billion. It also exceeded TSMC’s previous guidance range of $28.4 billion to $29.2 billion provided in April. The impressive revenue figures highlight a significant global demand for sophisticated chips, especially those designed for artificial intelligence applications. TSMC, the world’s largest contract chipmaker, counts key clients such as Nvidia and iPhone-maker Apple among its customer base.