Markets concluded the day with a modest decline, having recovered some losses as the session progressed. Investors are currently assessing the implications of recent developments at the Federal Reserve alongside the persistent robustness observed in technology equities. At 4:00 p.m. ET, the market experienced a decline of 224 points, representing a decrease of 0.5%. The index saw a slight reduction of 0.03%, while another measure increased by 0.4%. The primary indices on Wall Street have experienced upward momentum throughout the week, primarily driven by robust quarterly earnings reports. Week to date prior to Thursday, the S&P 500 has gained 1.7%, the NASDAQ Composite has added 2.5% and the Dow Jones Industrial Average has advanced 1.4%.
Federal Reserve Governor Christopher Waller is being positioned as a prominent contender to take over from Jerome Powell as the chair of the U.S. central bank, as reported by Bloomberg, referencing sources with knowledge of the situation. Advisers to President Donald Trump reportedly find Waller’s policy framework commendable, as it prioritizes forecasting over mere reactions to existing economic data. His profound understanding of the intricacies of the Federal Reserve system is regarded as a significant advantage.
In a recent update, Bloomberg has indicated that Trump intends to nominate Stephen Miran, currently chair of the Council of Economic Advisors, to the Federal Reserve Board of Governors, succeeding Adriana Kugler. Even on a temporary basis, appointing Miran, a key architect behind Trump’s ’America first’ economic agenda, indicates that the president is positioning for a Federal Reserve that is more in sync with his administration’s policies.
Apple experiences a significant increase following the announcement of a $100 billion investment commitment; the implementation of Trump tariffs is underway. The company has built upon its previous gains after the White House revealed that it would invest an additional $100 billion in domestic manufacturing over the next four years, thereby elevating its total U.S. investment commitment to around $600 billion. This action is perceived as a convergence of policy with the Trump administration and a tactical reaction to escalating trade tensions.
Market participants have remained vigilant regarding tariff changes, as U.S. President Donald Trump has enacted a further 25% tariff on India, resulting in cumulative U.S. tariffs on this significant trading partner reaching 50%. The president indicated that the increase is attributable to India’s ongoing purchases of Russian oil, reflecting his commitment to impose consequences on Russia’s trade partners should a peace agreement regarding Ukraine not be established by September. Meanwhile, Trump indicated his intention to impose a tariff of approximately 100% on imported semiconductors, while products from companies that manufacture chips domestically would be exempt from this measure. Trump’s reciprocal tariffs were implemented on Thursday, raising new concerns regarding a potential global economic slowdown.
There are additional earnings to consider. On Thursday, Hertz stock experienced a notable increase following the car rental company’s announcement of its strongest quarterly performance in almost two years, driven by a substantial enhancement in profitability. ConocoPhillips stock experienced an increase following the company’s performance that surpassed expectations for second-quarter profit, attributed to a rise in output that enabled the oil and gas producer to mitigate the adverse effects of declining crude prices. DoorDash stock experienced a significant increase following the company’s projection of third-quarter gross merchandise value that exceeded expectations. This optimistic outlook is predicated on strong anticipated demand for food and grocery deliveries via its platform. Duolingo’s stock experienced a notable increase following the company’s upward revision of its annual revenue forecast and its outperformance in second-quarter revenue estimates. This optimism is largely driven by expectations of wider adoption of its AI-enhanced subscription tier among its global user base.
Peloton Interactive stock experienced a significant increase following the company’s forecast of 2026 revenue that surpassed estimates. Additionally, the firm announced plans to reduce its global workforce by 6% as part of its ongoing strategy to enhance cost savings during its turnaround efforts. Conversely, Eli Lilly’s stock experienced a decline following the release of a study indicating that the pharmaceutical company’s weight-loss pill resulted in a reduction of body weight that was inferior to that of a competing treatment from Novo Nordisk. Airbnb’s stock experienced a decline following the company’s projection of slower growth in the latter half of the year. This forecast has left investors in the sector disheartened, particularly those anticipating a resurgence in travel demand after optimistic outlooks from leading travel firms. Intel stocks experienced a decline following Trump’s demand for the immediate resignation of CEO Lip-Bu Tan, citing significant conflicts arising from his connections with China. Firefly Aerospace experienced a significant increase of 50% following its public market debut, opening at $70 per share. The space technology company set its share price at $45 on Wednesday, exceeding the anticipated range of $41 to $43.
The number of Americans submitting new applications for unemployment benefits increased last week, with state unemployment benefits climbing by 7,000 to a seasonally adjusted total of 226,000 for the week ending August 2, as reported by the Labor Department on Thursday. Seasonally adjusted, the metric reflecting the number of U.S. residents currently receiving or seeking unemployment benefits reached 1.974 million for the week ending July 26, marking an increase of 38,000 from the prior week. The figure surpassed the anticipated 1.950 million, marking the highest total since November 2021. Last week’s disappointing payrolls report heightened expectations for a potential interest rate cut by the Federal Reserve next month. Some Fed policymakers have indicated a readiness to reduce rates at the central bank’s forthcoming meeting in September to respond to the cooling labor market, despite ongoing concerns that tariffs might exacerbate inflationary pressures. Market participants are currently assigning approximately a 94% probability to a Federal Reserve rate cut in September, a significant increase from the 48% likelihood observed just one week prior, as indicated by the CME Group’s FedWatch Tool. Traders anticipate a cumulative reduction of 60.5 basis points in interest rates for this year.