Welcome, esteemed investors, to the grand theater of global finance, where the curtain rises daily on the latest act of the Trump administration. In this unique production, policy announcements often double as dramatic plot twists, and market reactions swing wildly, often defying conventional economic logic. The past week, specifically August 8th and 9th, 2025, offered a particularly compelling performance, featuring a medley of tariff threats, geopolitical overtures, and the usual dose of presidential pronouncements from the digital stage of Truth Social.
The Tariff Tango: A Dance with Danger (and Profits?)
The week kicked off with President Donald Trump’s latest round of tariffs taking effect on Thursday, August 7th, impacting imports from dozens of countries. Economists, ever the spoilsports, immediately began sounding alarms about the increased risk of “stagflation” – that delightful economic cocktail of high prices and sluggish growth. According to an analysis from the Yale Budget Lab, the effective average U.S. tariff rate now stands at a staggering 18%, the highest since 1934. They predict a short-term price increase of 1.8%, equating to a rather inconvenient $2,400 loss of income per U.S. household.
Yet, in a testament to the market’s peculiar resilience, or perhaps its newfound “numbness to tariff headlines” as Daniel Skelly of Morgan Stanley’s Wealth Management Market Research & Strategy Team so eloquently put it, Wall Street largely shrugged. On Thursday, the S&P 500 (SPX) slipped a mere 0.1%, or 5.06 points, to 6,340.00, while the Dow Jones Industrial Average (DJI) dipped 0.5%, shedding 224.48 points to 43,968.64. The tech-heavy Nasdaq Composite (IXIC), however, defied the gravity of tariffs, rising 0.3% to a new record of 21,242.70.
By Friday, the market seemed to have fully embraced the chaos. The S&P 500 (SPX) surged 0.8%, nearly touching its previous record, and the Dow (DJI) climbed 0.5%. The Nasdaq (IXIC) continued its ascent, adding another 1% to close at an all-time high for the second consecutive day. For the week, the indices posted solid gains: the S&P 500 (SPX) advanced 2.4%, the Nasdaq (IXIC) climbed 3.9%, and the Dow (DJI) tacked on 1.6%.
Meanwhile, the President himself, from the digital pulpit of Truth Social, declared that “Tariffs are having a huge positive impact on the Stock Market,” claiming they were fueling “record highs” and bringing in “hundreds of billions of dollars” to the nation’s coffers. This, of course, was juxtaposed with his earlier, more dramatic pronouncements that a court ruling against his tariffs could trigger a “Great Depression.” One can only assume the market is simply too busy setting new records to notice the impending economic apocalypse.
Gold’s Gilded Rollercoaster and Oil’s Slippery Slope
The precious metals market, typically a safe haven in times of uncertainty, found itself caught in a particularly bizarre tariff-induced whipsaw. On Friday, U.S. gold futures spiked to a record high of $3,530 per ounce, up 0.23% to $3,461 by 2 p.m. EDT. This surge was triggered by the imposition of a hefty 39% tariff on Swiss gold bullion bars, a move that sent commodity investors scrambling. Switzerland, being the world’s largest gold refining hub, was understandably displeased, with its president reportedly returning “empty-handed” from a last-minute dash to Washington.
However, the White House, seemingly realizing it had accidentally tariffed a safe haven asset into a panic-driven frenzy, quickly clarified that imports of gold bars would not face tariffs after all. This sudden policy U-turn caused gold futures to retreat almost as quickly as they rose, settling up just 0.17% to $3,459.70, down 1% from their earlier highs. It appears even gold isn’t immune to the “volatility unleashed in the confusion of the tariff age,” as Susannah Streeter, head of money and markets at Hargreaves Lansdown, acutely observed.
In the energy sector, oil prices reacted to the news of an upcoming meeting between President Trump and Russian President Vladimir Putin in Alaska. The prospect of a U.S.-Russia deal aimed at a Ukraine ceasefire sent West Texas Intermediate crude plunging sharply below $64 a barrel, hitting a two-month low. Oil prices ended the week approximately 5% lower. Conversely, the Russian Moscow Exchange (MOEX) Index, a barometer of Russian economic sentiment, surged more than 5% on Thursday, reaching a two-month high of 2,905 points, underscoring the market’s enthusiasm for potential de-escalation.
Corporate Casualties and Unexpected Victors
The tariff drama wasn’t without its corporate victims and surprising beneficiaries. Footwear maker Crocs (CROX) tumbled a painful 29.2% on Thursday, citing tariff worries and an expected revenue drop, despite reporting a stronger-than-expected profit. Drugmaker Eli Lilly (LLY) also dropped 14.1%, and Caterpillar Inc. (CAT) shares ended 2.5% lower after missing earnings estimates and explicitly blaming tariffs for impacting its business. These companies, it seems, are still grappling with the notion that “trade wars are good, and easy to win.”
On the flip side, some tech giants managed to navigate the turbulent waters with surprising agility. Apple (AAPL) saw its stock climb 3.2% on Thursday, buoyed by hopes that its sheer size could help it weather Trump’s economic policies. This optimism was further fueled by CEO Tim Cook’s White House announcement of an additional $100 billion investment in U.S. manufacturing over the next four years. By Friday, Apple (AAPL) stock surged over 4% to 230.87, marking a remarkable 13% gain over three trading sessions.
The semiconductor sector, however, experienced its own brand of drama. President Trump, in a move that sent ripples through the industry, publicly demanded the resignation of Intel (INTC) CEO Lip-Bu Tan on Truth Social, accusing him of being “highly CONFLICTED” due to alleged ties to China. This presidential directive sent Intel (INTC) shares sinking 3.1% on Thursday. Yet, in a testament to corporate fortitude (or perhaps just a Friday rebound), Intel (INTC) shares recovered 1% on Friday, with Tan reaffirming the board’s support and his commitment to U.S. national and economic security. Other chipmakers, including Nvidia (NVDA) (+1.1%), Advanced Micro Devices (AMD) (+0.41%), and Marvell Technology (MRVL) (+1.46%), also saw gains on Friday, seemingly benefiting from the broader tech rally and, in some cases, tariff exemptions for U.S.-based manufacturing. It’s almost as if the market enjoys a good plot twist, particularly when it involves a major tech player.
Beyond the tech sphere, DoorDash (DASH) added 5% and Duolingo (DUOL) jumped 13.7% on Thursday after exceeding profit expectations. On Friday, Expedia Group (EXPE) rose 4.1% and Monster Beverage (MNST) jumped 6% after their respective earnings reports. However, not all companies enjoyed the ride; Pinterest (PINS) dropped 10% and ad tech company The Trade Desk (TTD) plunged a dramatic 39%.
The Truth (Social) of Economic Policy
The week’s events underscore a recurring theme in the Trump era: policy is often announced, debated, and even reversed in real-time, frequently via social media. The President’s Truth Social posts continue to be a primary source of economic guidance, offering bold claims about the positive impact of tariffs on the stock market and dire warnings of a “Great Depression” if these policies are challenged. This direct-to-investor communication style, while certainly engaging, ensures that market participants remain perpetually on their toes, ready to react to the latest tweet or post. Even the appointment of a new Federal Reserve governor, Miran, was noted with a hint of sarcasm by analysts, who dubbed him “just a seat warmer” – a nod to the transient nature of some appointments in this administration.
The ongoing trade disputes, particularly with India, also highlight the unpredictable nature of the current economic landscape. India has reportedly paused plans to buy U.S. arms after Trump imposed an additional 25% tariff, bringing the total to 50% due to India’s continued purchase of Russian oil. Moody’s has warned this could significantly impact India’s manufacturing goals and undermine its efforts to attract global investment.
Conclusion: An Unscripted Reality Show
As the week closes, the U.S. stock market has once again demonstrated its remarkable ability to absorb, interpret, and ultimately, largely shrug off the constant stream of policy pronouncements and geopolitical maneuvering emanating from Washington. While economists continue to fret about the long-term implications of rising tariffs and the specter of stagflation, and companies like Crocs (CROX) and Caterpillar (CAT) feel the immediate pinch, the major indices, particularly the tech-heavy Nasdaq (IXIC), appear to be thriving on a diet of corporate earnings and perhaps, a healthy dose of selective hearing. The Trump market remains an unscripted reality show, where the plot twists are plentiful, the dialogue is unfiltered, and your portfolio is always on the edge of its seat, waiting for the next big announcement.
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.