Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed in the green on Wednesday as investors prepare themselves for President Trump’s new tariffs set to take effect on August 8.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
A slew of companies within the two ETFs have reported earnings this week, including Palantir (PLTR), Advanced Micro Devices (AMD), Super Micro Computer (SMCI), and Shopify (SHOP). The action isn’t over yet, as Datadog (DDOG), Eli Lilly (LLY), Ross Stores (ROST), and Cisco (CSCO) will report their respective earnings in the coming days. Both ETFs have traded higher since Monday.
This morning, Minneapolis Fed President Neel Kashkari warned that recent economic data releases have signaled that the economy is slowing down. He added that a pair of rate cuts by the end of the year “seems reasonable to me.”
“The economy is slowing – and that means, in the near term, it may become appropriate to start adjusting the federal-funds rate,” Kashkari said.
National Economic Council Director Kevin Hassett, a top Trump advisor, accused the Fed of being influenced by political bias when making interest rate decisions. Hassett is a top contender to replace Fed Chair Jerome Powell when his term expires in May 2026. On prediction platform Polymarket, Hassett has a 25% chance of being selected by Trump before December 31.
Meanwhile, President Trump is set to announce a $100 billion domestic investment from Apple (AAPL) at 4:30 P.M. Eastern Time, bringing the iPhone-maker’s total investment since February to $600 billion. The proceeds will go toward an AI server plant in Texas, manufacturing facilities, supplier payments, and more.
“Today’s announcement with Apple is another win for our manufacturing industry that will simultaneously help reshore the production of critical components to protect America’s economic and national security,” said White House spokesperson Taylor Rogers. Apple’s massive investment could help the company receive tariff exemptions for its products, similar to the treatment it received during Trump’s first term.
Apple is already exempt from the 25% tariff rate that the U.S. has placed on India. On Wednesday, Trump signed an executive order doubling India’s tariff to 50% due to the country’s purchases of Russian oil. According to MacRumors, Apple will likely remain exempt from the higher tariff level as well. Trump kept true to his word, as he vowed to hike India’s tariff earlier this week, saying that it indirectly supports Russia’s war against Ukraine.
The S&P 500 (SPX) closed with a 0.73% gain while the Nasdaq 100 (NDX) returned 1.29%.
