Rise and shine everyone
US stocks continued their rally, inching closer to all-time highs. So far, 96% of US tech companies have beaten Q2 earnings estimates. For the broader market, 82% of S&P 500 firms exceeded expectations, the highest beat rate in four years.
Apple surged 6% during the session and added another 2.8% after hours. The boost came after it announced a further $100B investment in US supply chains, taking its total commitment to $600B. Samsung was named as a key partner.
After the close, President Trump threatened a 100% tariff on foreign chips not built in the US. However, exemptions will likely apply to firms that manufacture or invest in the US. Analysts see this as bullish for US-based semiconductor and wafer fab activity.
Trump also hinted at potential tariffs on China over its Russian oil imports. Separately, he confirmed plans to meet both Putin and Zelenskiy soon, news that helped lift US futures.
Asian markets were mostly higher. The Kospi outperformed with a 0.8% gain, while the ASX took a breather.
Semiconductor names rallied on hopes of US tariff exemptions. Hynix rose 1.6%, Samsung gained 2.0%, and TSMC jumped 4.9%. Taiwan’s Taiex index was up 2%.
In contrast, Japan’s Tokyo Electron dropped 3.6%, now down 22% this month. The fall comes amid concerns over its limited US exposure and a growing IP probe involving a Taiwan-based employee.
India came under fresh US pressure over its Russian oil purchases. The Trump administration doubled tariffs on non-exempt Indian goods to 50%, with implementation in 21 days. Smartphones and PCs are excluded, meaning Apple won’t be affected. India responded defiantly, saying it will take steps to protect its national interests.
European markets moved higher after Trump confirmed that semiconductor companies investing in the US would be exempt from the 100% tariff. Companies like Logitech, Nokia, and Ericsson may benefit due to their US manufacturing presence.
The Swiss Federal Council will hold an emergency meeting after officials returned from Washington without finalizing a trade deal. The tariffs actually exempt gold and pharmaceuticals, according to Bloomberg.
