Markets in Motion: Tariffs, Tech Triumphs, and Global Trade Tensions

Daniel Ledenev
Aug 9
7 min read

Updated: Aug 30

👋 Welcome Back Investors! (August 4 to 8, 2025)

If you thought August would be a sleepy month on Wall Street, think again. This week brought everything from record setting tech rallies to geopolitical curveballs, with a splash of safe haven gold for good measure. The Nasdaq sprinted to fresh highs, powered by Apple’s AI buzz and a jaw-dropping run in SoundHound. Across the globe, sudden U.S. tariffs on India rattled currencies and lit a fire under precious metals, while OPEC+ threw a little extra oil onto the market, literally. Meanwhile, the Fed played it cool, holding rates steady as investors tried to read between the lines. It was a week that reminded traders that summer doesn’t mean slow, it just means the plot twists come with sunshine.

🍏 Apple Pledges $100B U.S. Investment Amid Tariff Tensions

Apple announced it will boost its U.S. investment by an additional $100 billion, adding to its existing four-year pledge of $500 billion, in a move widely seen as a strategic response to mounting tariff threats from President Donald Trump. The White House said the funds will go toward expanding Apple’s domestic supply chain, including new data centers and a smart glass production line in Harrisburg, Kentucky, for use in iPhones and Apple Watches. Standing alongside Trump at the announcement, CEO Tim Cook emphasized that the investment will “spur even more production right here in America” and strengthen critical component manufacturing. The pledge comes after Trump warned of imposing a 100% tariff on chips and semiconductors in Apple products if the company did not shift more manufacturing to the U.S. Analysts noted the move could help Apple secure lighter treatment from the White House, even as broader trade tensions remain. Shares surged more than 5% on the news.

While most Apple products are still made in China, the company has been reworking its supply chain since the start of Trump’s new tariff war in January, shifting shipments from India and Vietnam where possible, but still paying over $800 million in new border taxes last quarter, with another $1.1 billion expected in the coming months. With tariffs on Indian-made goods set to rise to 50%, Cook also pointed to other U.S.-focused commitments, such as a manufacturing academy in Michigan and a $500 million rare earth magnet supply deal with MP Materials. Analysts caution that transforming Apple’s global production footprint will take time, but agree the investment signals Cook’s determination to navigate turbulent trade waters while keeping Apple’s supply chain resilient.

🌏 India and U.S. Trade Talks Collapse, Triggering Tariff Shock and Market Jitters

Global markets were rattled this week as India and U.S. trade negotiations fell apart, marking a sharp escalation in geopolitical and economic tensions. The U.S. imposed 25% tariffs on Indian goods, excluding pharmaceuticals and energy, citing disputes over agricultural tariffs and India’s continued reliance on discounted Russian crude. India, which sources 35 to 40% of its oil from Russia, now faces the dual challenge of energy diversification and retaliatory trade measures. The fallout is hitting key export sectors such as textiles, gems and jewelry, and auto components; industries that together account for over a quarter of India’s U.S. bound shipments. The jewelry trade alone, worth $10 billion annually, could see volumes plunge by 15% as exporters scramble to reroute goods through third countries.

U.S. multinationals are not immune. Apple’s growing dependence on India for iPhone assembly faces uncertainty, while major suppliers like Wipro and Larsen & Toubro reassess supply chain strategies. Currency markets reacted with the rupee sliding to 87.74 per dollar, prompting calls for hedging among investors. Analysts say the dispute underscores a new era of “weaponized trade,” where geopolitical leverage increasingly shapes market risks. Hedging strategies now center on safe haven assets like gold, which central banks in emerging markets are stockpiling at a record pace, and diversifying away from U.S.-dependent supply chains. While both nations may eventually return to the table, the collapse has left a clear message: the frictionless globalization era is over, and portfolios must adapt to a more fragmented trade order.

📈 Nasdaq Hits Record High as Tech Leads Weekly Rally

U.S. stocks ended the week on a high note, with the Nasdaq Composite climbing 1% to notch its second straight record close, while the S&P 500 rose 0.8% and the Dow added 0.5%. All three indexes logged strong weekly gains, the Nasdaq surged 3.9%, its best since late June, as tariff fears eased and optimism around economic resilience returned. Tech megacaps powered the rally, with Apple jumping over 4% after unveiling a $100B U.S. manufacturing investment, bringing its three-day gain to 13%. Alphabet, Tesla, Nvidia, and Meta also advanced, while chip stocks extended their rebound, led by Micron’s 6% surge. Gold briefly hit a record above $3,500 before retreating on reports the White House may exempt Swiss bullion from new tariffs. Oil extended its losing streak to seven sessions, falling to $63.35, the lowest since June. Meanwhile, The Trade Desk plunged nearly 39% on weak guidance tied to tariff pressures, while Expedia and Monster Beverage posted solid post-earnings pops.

📊 Inflation Data Could Stall Rally as Wall Street Eyes CPI Report

U.S. stocks enter the week at record levels, but Tuesday’s consumer price index (CPI) report could test the rally’s resilience as some investors brace for a pullback after four months of nearly uninterrupted gains. The S&P 500 is up over 8% this year and trading at more than 22 times forward earnings, its highest valuation in over four years, while the Nasdaq sits at an all-time high. Strategists at Deutsche Bank and Morgan Stanley warn that seasonally weak August-September trading, historically the worst two months for the index, combined with elevated valuations and tariff-driven inflation risks, could spark a correction. July CPI is expected to rise 2.8% year-over-year, but a hotter reading could challenge the market’s expectation of Fed rate cuts in September, currently priced at over 90% odds with at least two cuts anticipated this year. Higher tariffs already lifted to their highest average in a century, along with planned levies on chips and pharmaceuticals, add to inflation concerns. While recent stock gains suggest investors have largely dismissed tariff risks, some warn the economic drag may take longer to materialize, making this week’s inflation print a key test for sentiment.

📈 U.S. Stock Futures Rebound After Sharp Selloff; Oil Slips as OPEC+ Extends Output Boost

U.S. stock futures edged higher Sunday night, signaling a potential rebound after Wall Street’s steepest drop since April. Dow futures rose about 0.3% (up 120 points), while S&P 500 and Nasdaq 100 futures gained roughly 0.4% each, as investors digested political and policy shifts following President Trump’s announcement that he will appoint a new Federal Reserve governor and Bureau of Labor Statistics chief. The moves come after Friday’s selloff, when tariffs and weak jobs data sent the Dow tumbling 1.2%, the S&P 500 down 1.6%, and the Nasdaq off 2.2%, capping their worst week in months. In commodities, crude oil dipped 0.2% after OPEC+, led by Saudi Arabia, approved a September production hike of 547,000 barrels per day, marking the fifth consecutive monthly increase and the final step in reversing 2023’s voluntary cuts ahead of schedule. Analysts say the move aims to reclaim market share from U.S. shale producers while penalizing overproducing members, leaving uncertainty over future output decisions ahead of the group’s September 7 meeting. Gold ticked higher, bitcoin traded above $114,000, and investors turned their attention to a busy week of earnings from Disney, Warner Bros. Discovery, McDonald’s, Uber, and Palantir.

👀 Stocks to Watch: What This Week’s Moves Reveal

Markets kicked off the week with a rebound as tech leaders, strong earnings beats, and M&A chatter offset lingering worries about tariffs and inflation. The Nasdaq locked in back-to-back record closes, the S&P 500 climbed to within a hair of all-time highs, and mega-cap tech dominated the headlines. Commodity markets saw gold briefly top $3,500 before retreating, while oil extended its losing streak. From tech giants to travel names, here are the stocks that made waves this week:

Apple (AAPL) – Soared over 4% Friday, capping a 13% three-day surge after announcing a $100B U.S. manufacturing investment and winning exemption from new chip tariffs. The stock’s rally kept it in the driver’s seat of the tech-led market push.
Micron (MU) – Jumped 6% as chip stocks extended their rebound. Momentum was boosted by optimism over AI-driven demand and easing macro fears, lifting the broader semiconductor space.
SoundHound AI (SOUN) – Rocketed 26% to its highest level since February after reporting record revenue growth of 217% year-over-year and raising its full-year outlook.
Monster Beverage (MNST) – Climbed 6.4% on record quarterly sales, with analysts pointing to strong zero-sugar product demand and a growing energy drink market.
The Trade Desk (TTD) – Plummeted nearly 39% after warning that new U.S. tariffs are weighing on ad spending. A CFO change added to the selloff.
Expedia (EXPE) – Popped 5% after a strong earnings beat and improved guidance, fueled by surging international demand and gains in B2B and advertising revenue.

🛎️That’s a Wrap!

That’s it for this week’s recap, and what a week it was. Tech megacaps fueled the Nasdaq to back-to-back record closes, with Apple stealing the spotlight on a $100B U.S. investment pledge and tariff exemptions. Micron and other chipmakers extended their rebound, while gold briefly topped $3,500 before easing and oil logged its seventh straight loss. Earnings season kept traders on their toes as Monster Beverage and Expedia popped on strong results, while The Trade Desk and Under Armour stumbled hard on guidance cuts. With inflation data, Fed rate speculation, and geopolitical headlines lining up, next week’s market action could be just as charged. Stay nimble, summer trading is far from sleepy.

Until then, stay focused and stay curious. Catch you next week 👋