Asia stocks edge higher as tech meanders on Nvidia; Hong Kong hit by soft earnings
Investing.com -- S&P 500 turned negative after Bloomberg reported Thursday that Fed Governor Christopher Waller has emerged as a leading candidate to replace Fed chairman Jerome Powell, though downside was kept in check by jump in tech stocks.
At 2:44 p.m. ET, the Dow Jones Industrial Average traded 330 points lower, or 0.8%, the S&P 500 index fell 0.2%, and the NASDAQ Composite fell 0.3%.
The main averages on Wall Street have been buoyed most of the week by generally strong quarterly reports. Week to date prior to Thursday, the S&P 500 has gained 1.7%, the NASDAQ Composite has added 2.5% and the Dow Jones Industrial Average has advanced 1.4%.
Fed’s Waller emerges as top candidate for Fed chair
Federal Reserve Governor Christopher Waller is emerging as a leading candidate to succeed Jerome Powell as chair of the U.S. central bank, according to a report from Bloomberg that cites people familiar with the matter.
Advisers to President Donald Trump are said to be impressed with Waller’s policy framework, which places greater emphasis on forecasting rather than reacting to current economic data. They also view his deep familiarity with the inner workings of the Federal Reserve system as a key asset.
Reports of Waller, a Trump appointee, potentially replacing Trump added to ongoing concerns about the Federal Reserve’s independence as the President has previously suggested that the Fed’s policies should aligned with those of the White House.
Apple soars on $100 billion investment pledge; Trump tariffs kick in
Apple (NASDAQ:AAPL) added to gains from a day earlier after the White House said the company would pledge an additional $100 billion in domestic manufacturing over the next four years, raising its total U.S. investment commitment to approximately $600 billion.
The move is seen as both a policy alignment with the Trump administration and a strategic response to rising trade tensions.
Traders have continued to monitor tariff developments, with U.S. President Donald Trump imposing an additional 25% tariff on India, bringing total U.S. levies on the major trading partner to 50%.
The president said the hike is because India continues to buy Russian oil, a sign that he is following through on his threats to punish Russia’s trade partners unless a Ukraine peace deal is reached by September.
Meanwhile,Trump said he would impose a tariff of about 100% on imported semiconductors, though products from companies that build chips within the U.S. would be exempt.
Trump’s reciprocal tariffs also kicked in on Thursday, sowing fresh worries about global economic slowdown.
Q2 earnings season in final stretch
With the reporting season now in its final stretch, LSEG data showed that more than 80% of companies that have reported so far have exceeded earnings expectations.
There are more earnings in digest Thursday, with Hertz (NASDAQ:HTZ) stock soared after the car rental company reported its best quarterly performance in nearly two years, fueled by a significant improvement in profitability.
ConocoPhillips (NYSE:COP) stock rose after the oil giant beat estimates for second-quarter profit, as a rise in output helped the oil and gas producer offset a hit from weak crude prices.
DoorDash (NASDAQ:DASH) stock soared after the food delivery company forecast third-quarter gross merchandise value above expectations after topping estimates, betting on robust demand for food and grocery deliveries through its platform.
Duolingo (NASDAQ:DUOL) stock jumped after the language-learning app raised its annual revenue forecast and beat second-quarter revenue estimates, anticipating broader adoption of its AI-enhanced subscription tier among its global user base.
Peloton Interactive (NASDAQ:PTON) stock rose strongly after the exercise-bike maker forecast 2026 revenue above estimates and said it would cut 6% of its global workforce to boost cost savings under an ongoing turnaround effort.
On the flip side, Eli Lilly (NYSE:LLY) stock slumped after a study showed that the pharmaceutical giant’s weight-loss pill cut body weight by less than a rival treatment from Novo Nordisk (CSE:NOVOb).
Airbnb (NASDAQ:ABNB) stock dropped after the vacation home rental company forecast slower growth in the second half of the year, disappointing investors of the sector expecting a rebound in travel demand after strong outlooks from major travel firms.
Intel (NASDAQ:INTC) stocks slipped lower after Trump called for the immediate resignation of the company’s CEO, Lip-Bu Tan, saying he was highly conflicted over his ties with China.
Firefly Aerospace, meanwhile, jumped 50% after opening at $70 a share on its public market debut. The space tech firm priced its shares at $45 on Wednesday, above its expected range of $41 to $43.
Jobless claims point to cooling labor market
The number of Americans filing new applications for unemployment benefits ticked higher last week, with initial claims for state unemployment benefits rising 7,000 to a seasonally adjusted 226,000 for the week ended August 2, the Labor Department said on Thursday.
Seasonally-adjusted continuing claims, a measure of how many U.S. residents are currently receiving or seeking jobless benefits, stood at 1.974 million during the week ended on July 26, an increase of 38,000 from the previous week. It exceeded expectations of 1.950 million and was the highest total since November 2021.
Last week’s disappointing payrolls report raised expectations that the Federal Reserve will cut interest rate cuts next month, with some Fed policymakers having signaled a willingness to slash rates at the central bank’s upcoming meeting in September to address the cooling labor market, even as worries remain that the tariffs could fuel inflation.
Traders are pricing in around a 94% chance of a Fed cut in September, up from 48% a week ago, according to the CME Group’s FedWatch Tool. In total, traders see 60.5 basis points in cuts this year.
Ayushman Ojha and Frank DeMatteo contributed to this article