12:02pm: Stocks retreat on Bostic’s warning
Stocks pulled back after Atlanta Federal Reserve President Raphael Bostic reaffirmed his outlook of only one interest rate cut in 2025, showing caution despite softer labor market data.
The Dow Jones and the S&P 500 were both down 0.7% while the Nasdaq pared earlier gains to trade about 0.4% higher.
Bostic highlighted that while the labor market has softened, inflation remains his main concern and is still further from the Fed’s target than employment is.
This cautious stance dampened market optimism, as investors had been hoping for a quicker or more aggressive pace of rate cuts to support economic growth.
“While it caused a wobble last night stocks have overall managed to ignore the semiconductor tariff warning, but comments from the Fed’s Bostic have managed to put equities on the back foot,” IG chief market analyst Chris Beauchamp said in a statement.
“His warning about upward pressure on prices and the as-yet uncertain impact of tariffs are likely to land him on the naughty step in the White House, but they do reflect what everyone else appears to be thinking. Much of the euphoria around a Trump-Putin meeting has evaporated, though tech stocks are holding to most of the gains made in the wake of Apple’s announcement last night.”
11:05am: Alternative assets coming to 401(k)s
President Donald Trump will reportedly sign an executive order Thursday allowing alternative assets, such as cryptocurrencies, private equity, and real estate, to be included in 401(k) retirement plans, according to a Bloomberg News report.
The order will direct the US Secretary of Labor to review fiduciary guidance on private market investments under ERISA regulations.
This move is seen as a win for private asset managers, who have long pushed for broader access to defined-contribution plans during Trump’s second term.
While private market assets have traditionally been excluded from 401(k)s due to concerns over fees and transparency, their presence has grown since 2020 guidance deemed them permissible under certain conditions. The industry has already begun shifting, with BlackRock and Empower launching retirement products that include private assets.
Crypto stocks were boosted by the news, with crypto trading platforms Coinbase up 2.7% and Robinhood up 5.2%.
10:27am: Trump calls for Intel CEO to resign
Intel shares traded almost 3% lower after Trump called on the company’s CEO Lip-Bu Tan to resign immediately in a new social media post.
His call comes amid concerns about Intel being a major recipient under the US CHIPS Act, given Tan’s financial ties to numerous Chinese companies, some linked to China’s military.
“The CEO of INTEL is highly CONFLICTED and must resign, immediately,” Trump wrote on Truth Social, his social media platform. “There is no other solution to this problem. Thank you for your attention to this problem!”
9:45am: Nasdaq leads Wall Street higher
US stocks started Thursday’s session strong, led by a 1% jump in the Nasdaq as Trump unveiled new chip tariffs, which included broad exemptions for domestic firms. The S&P 500 added 0.6% while the Dow Jones was up 0.4%.
Meanwhile, Americans receiving ongoing unemployment benefits rose to the highest level in nearly three years, according to new data from the Department of Labor released Thursday morning.
In the week ending July 26, continuing jobless claims — which track those filing for unemployment benefits for more than one week — rose to 1.974 million, up 38,000 from the prior week.
That marks the highest level since November 6, 2021, when claims totaled 2.041 million. The four-week moving average, which smooths out weekly volatility, also ticked up to 1.951 million.
This data signals that unemployed workers are taking longer to find new jobs, possibly reflecting softening conditions in the labor market.
Meanwhile, initial claims for the week ending August 2 increased to 226,000, up 7,000 from the prior week’s revised figure of 219,000. Despite the uptick, the four-week average dipped slightly to 220,750, down 500 from the previous week.
8:25am: Trump tariffs in force
US stocks are set to extend gains on Thursday, led again by the tech sector, after Donald Trump’s new round of tariffs came into effect at midnight.
Nasdaq 100 futures were up 0.7%, those for the S&P 500 rose 0.6% and for the Dow Jones edged up 0.5%.
In the previous session, the Nasdaq Composite jumped 1.2%, the S&P added 0.7% and the Dow 0.2%.
The President confirmed 100% tariffs on imported semiconductors and said domestic manufacturers and companies like Apple would be exempt.
CEO Tim Cook accompanied Trump as the iPhone maker committed to investing another $100 billion in the US, on top of its $500 billion already announced.
Carve-outs were also agreed to help the likes of Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC), which have made sure to commit many billions of dollars to US manufacturing.
Higher tariffs for Switzerland, however, remained following its failed appeal to avoid the hike, while the tariff hike on India in relation to Russian oil dealing are both examples of Trump not ‘chickening out’ when he feels a strong arm is required.
Today’s earnings include Eli Lilly, Merck, Viatris before the opening bell, with afterhours reporters including Block, Gilead Sciences, Pinterest, Take-Two Interactive Software, The Trade Desk and Twilio.
Market sentiment has been lifted, said market analyst Fawad Razaqzada at City Index, after the Kremlin confirmed a meeting between Presidents Putin and Trump was on the cards in the coming days, “a move stirring hopes of some form of resolution, or at least de-escalation, in the Russia-Ukraine conflict”.
He said the latest tariff move was “taken with a positive twist” after the lifeline was thrown to domestic manufacturers like Apple.
“The impact of tariffs could worsen the state of the US economy, but so far investors are not too worried about the impact of them on inflation,” said Razaqzada.
“That’s because the US economy has shown signs of weakness of late, and the thinking here is that any price pressures will be quickly absorbed because of soft demand.”
The Federal Reserve also appeared to soften its tone after the weak labour market data last week, with three policymakers sounding the alarm on the weakening jobs market.
San Francisco Fed president Mary Daly suggested a rate cut may be needed “in the coming months” to stop the rot.
In crypto news, President Trump also signed a landmark executive order to open up the US retirement market to cryptocurrencies, private equity, and other alternative assets.
The move allows crypto exposure within 401(k) plans for the first time.
It is “a defining moment not just for crypto, but for the entire future of finance,” said Nigel Green of deVere Group.
“The world’s largest economy is saying, in effect, that digital assets now belong in the core of long-term wealth strategies. This has global implications.”
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