The S&P 500 rose above its July 28 record close on Friday, finishing just shy of it. The Nasdaq also reached a new record closing high. This week’s gains were driven by tariff headlines and Apple’s success in appeasing President Donald Trump with a large US investment commitment.
Apple stock led the way higher, surging more than 13% this week and ending on a three-session winning streak. As part of its investment, Apple will fund a $2.5 billion expansion of Corning, a glass maker for iPhone and Apple Watch. This move will also see Apple investing in US semiconductor manufacturing capacity.
Trump exempted Apple from the 100% tariff on semiconductor imports, saying “If you’re building in the USA, there’s no charge.” However, this exemption may not last, and investors should watch as Trump announces new tariffs on India due to Russian oil purchases. The levy rate is set to increase to 50% by August 27.
Drug stocks were hit hard by news of a potential “small tariff” on pharmaceuticals, with rates potentially reaching 250%. Eli Lilly’s stock took an 18% weekly loss after its phase three trial failed to meet expectations.
Despite the challenges, some stocks performed well. DuPont reported strong cash flow results and saw its shares rise less than 1%. Coterra Energy released positive results driven by higher-than-expected production, with shares gaining nearly 1.4%. Eaton’s earnings beat, but investors took issue with management’s guidance, causing a near 5% weekly loss.
Disney upgraded its shares after reporting strong streaming performance and beating sales expectations. Texas Roadhouse reported mixed results, with comparable sales up but profitability taking a hit due to beef prices. Overall, the market bounced back from a challenging week driven by tariffs and earnings news.
Source: https://www.cnbc.com/2025/08/09/in-a-pivotal-week-for-tariffs-how-apple-shined-and-drove-the-nasdaq-to-new-highs.html