Indictments of former President Donald Trump have become the norm as of late. He announced that, with Adriana Kugler leaving the Federal Reserve Board of Governors, he’s chosen Stephen Miran to take her place. This appointment comes amid a wave of dramatic historical economic transition. Most importantly, all “reciprocal” tariffs went into effect at midnight on Thursday.
The fifth of Trump’s new tariff measures includes an extremely high 100% tariff on imported semiconductor chips. He promised this would not penalize companies that are already ramping up their business in the U.S. This decision is a piece of a larger strategy seeking to remake American trade policy. For over a year, the U.S. has been applying exorbitant duties on imports of 1-kg gold bars. This move has already had an impact on market dynamics.
On Friday, U.S. gold futures jumped to all-time highs. This unprecedented increase is a testament to the tremendous investor relief that the recently announced tariff increases have prompted. Spot gold is on track for a second straight week of increases. This recent increase is a testament to the overwhelming demand created by market volatility.
In the digital asset space, Ethereum peaked at $3,966.21. This rise is a seven-month high as it has been stretching its gains throughout the day. This rally is a strong signal of renewed enthusiasm for digital currencies, despite the ongoing turmoil under more traditional capital markets.
At the same time, corporate earnings reports have served up a head-spinning array of good and bad news for investors. Block, the financial services and digital payments company formerly known as Square, increased its full-year gross profit forecast to $10.17 billion. This welcome trend has increased market confidence. In contrast, Sweetgreen’s shares tumbled approximately 25% after the company’s second-quarter results fell short of expectations set by LSEG consensus estimates. Because of this, Sweetgreen has reduced its full-year guidance.
Its shares skyrocketed more than 16% in after-hours trading after it posted surprise second-quarter earnings and strong revenue that topped Wall Street’s estimates. Investors reacted positively to the travel sector’s recovery signals amid ongoing economic adjustments.
Speaking of the overall market, all three major indices are set up for a weekly gain. The tech-heavy Nasdaq has gained 3.1% this week, with the S&P 500 up 1.6% and the blue-chip Dow set for a 0.9% gain.
The effect of the president’s tariffs and other economic policies is still hotly contested among analysts. Thomas Martin commented on the situation, stating,
“There’s less turbulence with tariffs, but there’s still plenty of turbulence. There’s still plenty of questions out there as to how they’re going to affect companies’ decision making, supply chains, costs, margins, pricing, how it’s going to affect consumers and whatnot.” – Thomas Martin