Ah, the stock market. A bastion of calm, predictable growth, right? Not when President Donald Trump is at the helm, apparently. The past week has been a masterclass in market gymnastics, with announcements from the Oval Office sending tickers spinning faster than a White House press secretary trying to explain the latest policy pivot. From sweeping tariffs to executive demands for CEO resignations, the financial world is once again reminded that under this administration, volatility isn’t a bug, it’s a feature. Investors, buckle up; it seems the “rough and bumpy road” of new tariff increases is here to stay.
The Tariff Tango: A Hundred Percent Headache
The latest headline-grabber, fresh off the digital presses, is President Trump’s declaration of a whopping 100% tariff on computer chips unless they are manufactured in the USA. Because, naturally, nothing says “free market” like a prohibitive import tax designed to force domestic production. This move, aimed at bolstering American manufacturing, immediately raised eyebrows and, presumably, the projected cost of your next smartphone. Analysts are already warning that tech prices are “likely to rise” as a direct consequence of this new levy.
The semiconductor industry, ever the geopolitical ping-pong ball, is now grappling with this sudden shift. While the stated goal is to incentivize domestic investment, the immediate impact is a fresh wave of uncertainty. However, some companies, like tech titan Apple, seem to have found the golden ticket to tariff evasion. Just this week, Apple announced an additional $100 billion investment in U.S. manufacturing, bringing their total commitments under the Trump administration to a staggering $600 billion. This substantial pledge appears to be their “get out of tariff free” card, as investors speculated the tech giant might avoid new import duties. Indeed, Apple‘s stock has been on a tear, surging over 9% this week alone. On Friday, August 8, 2025, Apple was trading at AAPL ($229.56, +4.28%), a testament to its ability to navigate (or perhaps, influence) the choppy waters of trade policy. Bank of America, ever the optimist, responded by raising Apple‘s price target from $240.00 to $250.00, maintaining a “Buy” rating. Morningstar, meanwhile, raised its fair value estimate for Apple to $210 from $200, citing an increased iPhone unit growth forecast, though they do model a “roughly 15% valuation risk” if Apple‘s products somehow lose their tariff exemption.
But the chip tariff isn’t an isolated incident. President Trump has been busy elsewhere on the global trade chessboard. New “reciprocal” tariffs have been announced, including an additional 25% tariff on imports from India, specifically targeting their continued purchases of Russian oil. Not to be outdone, a 50% tariff on U.S. imports of copper has also been declared. These measures, part of a broader “Trade War 2.0” narrative, are already causing ripples. The Dow Jones Industrial Average, for instance, reportedly fell 200 points on the very first day of these global tariffs taking effect. [9 (Google Alert)]
Unsurprisingly, the sentiment among businesses is less than enthusiastic. Reports indicate that companies, large and small, are now “staring down a ‘rough and bumpy road’ of new tariff increases.” A recent survey highlighted that nearly 90% of businesses believe these tariffs have “negatively impacted U.S. manufacturing and production.” Even China, often a target of such policies, has weighed in, slamming the U.S. over its “abuse of tariffs,” particularly after Trump threatened similar tariffs on China for its Russian crude purchases. It seems the global economy is once again playing a high-stakes game of “who blinks first.”
The CEO Shuffle: A Truth Social Directive
Beyond the realm of international trade, the President’s influence extends directly into the executive suites of American corporations. Case in point: the dramatic call for Intel CEO Lip-Bu Tan to resign. The directive, delivered not through official channels but via a sharply worded post on his social media platform, Truth Social, cited alleged ties to Chinese companies. Because, clearly, the best way to manage corporate governance is through a public social media broadside.
The market, ever sensitive to presidential pronouncements, reacted swiftly. Intel shares fell more than 4% in pre-market trading on Thursday, August 7, following Trump’s comments. The stock experienced a 3.14% plunge on Thursday, with a significant volume of 131,382,767 shares traded. This immediate drop underscores the “market’s sensitivity to geopolitical risks affecting companies that are dependent on government contracts along with international partnerships.” While Intel‘s CEO, Lip-Bu Tan, quickly issued a statement affirming he has the “full support of the company’s board,” the damage to investor confidence was already done. On Friday, August 8, 2025, Intel recovered slightly, trading at INTC ($19.87, +0.51%), but analysts still maintain a “Reduce” consensus rating on the stock. It’s almost as if publicly demanding a CEO’s resignation via social media isn’t conducive to stable market conditions. Who knew?
The Fed Factor: A Temporary Fix?
Adding another layer to the week’s market machinations is President Trump’s nomination of Stephen Miran to temporarily fill a crucial U.S. Federal Reserve Board seat. Miran, currently heading the Council of Economic Advisers, is slated to serve in this role until January. The Federal Reserve’s monetary policy decisions, particularly on interest rates, have a profound impact on the economy and markets. Investors are keenly watching for signals, with “hopes for coming cuts to interest rates by the Fed” being a consistent theme. The general consensus is that the Fed “lowers rates to boost a softening economy and labor market.”
Miran himself has articulated views on using the U.S.’s “economic scale and consumer market” as tools, which aligns neatly with the administration’s aggressive trade stance. The appointment, even if temporary, injects another element of political influence into an institution traditionally seen as independent. Whether this temporary appointment will lead to the desired rate cuts and market stability remains to be seen, but it certainly adds another unpredictable variable to the already complex equation of Trumpian economics.
The Relentless Rollercoaster: A Weekly Recap
Despite the individual stock plunges and the Dow’s initial dip, the broader market indices managed to pull off a surprising recovery by week’s end. On Friday, August 8, 2025, the Dow Jones Industrial Average popped 236.78 points to 44,205.42, while the S&P 500 index jumped 45.53 points to 6,385.53. The tech-heavy NASDAQ hiked 170.7 points to 20,413.39, even setting a new all-time high on Thursday. All three major U.S. indexes are now “on track to post weekly gains,” rebounding from a “sluggish performance last week.” This resilience, or perhaps, short-term amnesia, is remarkable, especially considering that “market concerns about tariffs and the health of the economy have subsided this week, even as the U.S. imposed hefty tariffs on dozens of trade partners after several delays.”
It seems the market has developed a curious coping mechanism: a short-term memory loss regarding the very policies that send it spiraling. One day, tariffs cause a 200-point drop in the Dow. The next, the market shrugs, seemingly unfazed by the very same “hefty tariffs” now in effect. [3, 9 (Google Alert)] This observational snark isn’t merely for comedic effect; it highlights the inherent contradiction in a market that simultaneously fears and then quickly discounts the impact of sudden, unpredictable policy shifts. Perhaps it’s a testament to the underlying strength of the American economy, or perhaps it’s just the financial world’s collective sigh of resignation, knowing that when it comes to President Trump, the only constant is change, and the only certainty is uncertainty. Investors, keep those seatbelts fastened. The ride is far from over.
DISCLAIMER: We read Trump’s posts so you don’t have to. This is comedy meets market data, not financial advice. Not political advice either – we just like charts and chaos.
Elana Harper is a seasoned financial editor and market analyst with over a decade of experience covering global equities, economic trends, and corporate earnings. Known for her sharp insights, Elana specializes in making complex financial topics accessible to a broad audience. She now serves as the Senior Financial Editor at Stock Market Watch, where she oversees daily market coverage and political commentary.