Key Takeaways
- Former President Trump has indicated that global tariffs could range between 15% and 20%, signaling a potential shift towards more protectionist trade policies if he were to return to office.
- Trump reiterated his strong disapproval of wind energy, a stance that could negatively impact major wind operators like NextEra Energy (NEE).
- Advanced Micro Devices (AMD) surged above $170, driven by strong momentum in the artificial intelligence (AI) chip sector and positive analyst sentiment.
- The Iranian President warned of a forceful response to any new aggression while also expressing readiness for dialogue, amid ongoing regional tensions and talks with U.S. officials.
- JPMorgan raised its price target for Robinhood Markets (HOOD) to $98 from $47, indicating a significantly more bullish outlook for the trading platform.
Former President Donald Trump has again signaled a potential shift in global trade policy, stating that future tariffs could range between 15% and 20% for most trading partners. This comes as the U.S. government is expected to release letters setting reciprocal tariff rates for approximately 150 trading partners before August 1. Earlier discussions had seen threats of tariffs as high as 30% for the European Union, which has now reportedly been reduced to 15% as part of a trade agreement. Experts warn that such tariffs could lead to higher prices for consumers, with some import-heavy categories potentially seeing price spikes of 20% to 40%.
In the energy sector, Trump reiterated his long-standing dislike for wind energy, calling it a "con job" and "the most expensive energy" that relies on "massive government subsidies." This sentiment could have negative implications for companies like NextEra Energy (NEE), which is the world's largest operator of wind and solar projects. Trump has previously ordered a freeze on leasing federal areas for new offshore wind projects and has criticized green tax breaks.
On the technology front, Advanced Micro Devices (AMD) experienced a significant surge, breaking above the $170 mark. This upward movement is largely attributed to growing momentum in the AI chip market. Analysts are closely watching AMD's upcoming Q2 2025 earnings report on August 5 for confirmation of strong adoption of its MI355X chips and clarity on the MI400 timeline. The company's data center segment saw a 57% year-over-year revenue growth in Q1, fueled by demand for server CPUs and AI GPUs.
Geopolitical tensions remain a key focus, with the Iranian President stating that any new aggression against the country will be met with force, while simultaneously expressing readiness for dialogue. This comes as Israeli Minister for Strategic Affairs Ron Dermer and National Security Adviser Tzachi Hanegbi are in the U.S. for talks concerning Gaza and Iran.
In other financial news, JPMorgan significantly raised its price target for Robinhood Markets (HOOD) to $98 from $47. This bullish outlook follows Robinhood's "notable progress in legitimizing its operations" beyond its previous reliance on meme-stock trading. Meanwhile, the Boeing-built X-37B spaceplane is set for its eighth mission, scheduled for launch no earlier than August 21. This mission will expand its capacity for experiments, including a laser communications demonstration and a strategic grade quantum inertial sensor.
On the domestic front, the Department of Justice (DOJ) has charged a USDA official and five others in a massive food stamp fraud scheme, which generated over $66 million in unauthorized transactions, marking it as one of the largest in U.S. history. Lastly, the Bank of England sold GBP 750 million in its Asset Purchase Facility (APF) gilt sale, with a cover-ratio of 2.65. The Bank of England has been notably aggressive in reducing its balance sheet compared to other central banks.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.