Investment Week at a Glance
Stocks finished lower for the week. The Dow Jones Industrial Average fell 1.0%, the S&P 500 was down 0.3%, and the NASDAQ fell 0.1%. Foreign stocks (MSCI EAFE) were up, rising 0.3%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.42%. (Data source: Wall Street Journal)
New Tariff Rates Announced
The 90-day pause on tariffs expired on July 9th and President Trump announced new tariffs on more than 20 countries last week. These rates range from 20%-50% and will go into effect on August 1st unless a trade deal is reached with these countries. Markets did not have much reaction to this news like we saw in April. Many of these new tariffs are with countries that the USA does very little trade with which will have little impact on the economy. The big 3 to watch are Mexico, Canada, & China as these are our 3 biggest trade partners by a large margin.
Pressure for Rate Cut Mounts
The pressure for the Fed to cut rates continues to mount as talks of current Fed Chair Powell’s replacement heats up. Fed Chair Powell’s term ends in May of 2026 and currently, there isn’t a true front-runner to replace him. The Trump administration is currently looking into the $2.5 billion renovation of the Federal Reserve buildings to see if this may be a fireable offense. With a rate cut looking unlikely at the next meeting, tensions are likely to rise in the coming weeks.
Nvidia Becomes First Company to Cross $4 Trillion
Last week Nvidia became the first publicly traded company to cross the $4 trillion market cap number. The stock has continued its amazing run higher as it is now up over 1,500% in the past 5 years. The stock has also had a nice short-term rally, up 74% from the bottom on April 4th. The company just crossed the $1 trillion mark in May of 2023 and has continued to be a benefactor of the AI wave. (CNBC)
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Quiz
What company was the first in the United States to cross a $1 trillion market cap? (Scroll Down for Answer)
- Apple
- Microsoft
- Amazon
- Berkshire Hathaway
Answer:
- Apple. On August 2nd, 2018, Apple became the first American company to cross the $1 trillion market cap threshold. Apple’s market cap today sits around $3.15 trillion.
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