Asian Morning Briefing: U.S. Stocks Rise Ahead of Tariff Deadline; Nasdaq Nears Record

Dow Jones2025-08-07

MARKET SNAPSHOT

U.S. stocks rose as investors eyed last-minute trade updates ahead of President Trump's tariff deadline. Longer-term Treasury yields rose while shorter-term ones fell amid renewed trade tensions and ahead of high-frequency labor data. The U.S. dollar weakened after Minneapolis Fed President Neel Kashkari hinted at the prospect of the Federal Reserve resuming interest rates soon. Gold futures inched lower ahead of Trump's tariff deadline. Oil futures fell for a fifth straight session.

MARKET WRAPS

EQUITIES

A rally in Apple and other big tech shares left the Nasdaq composite near a record Wednesday, while U.S. trading partners rushed to strike trade deals before President Trump's tariff deadline on Thursday.

Apple shares gained 5.1% after a White House official said the iPhone maker will pledge a $100 billion U.S. manufacturing commitment on Wednesday. Other shares of tech behemoths also advanced: Amazon.com shares climbed 4%, Tesla rose 3.6% and Meta Platforms added 1.1%.

The Nasdaq Composite rose 1.2%, leading the session's gains and closing less than 0.1% from a record. The S&P 500 gained 0.7% and the Dow Jones Industrial Average added 0.2%, or 81.38 points.

Investors also parsed a whirlwind of trade developments. Trump's special envoy Steve Witkoff met Russian President Vladimir Putin in Moscow on Wednesday. Trump has said Russia must strike a peace deal with Ukraine soon, or risk severe economic penalties.

Markets in Asia rose on Wednesday.

China's benchmark Shanghai Composite Index rose around 0.5%, while the Shenzhen Composite Index and the ChiNext Price Index both gained 0.7%.

Hong Kong's Hang Seng Index was flat.

Japan's Nikkei Stock Average rose 0.6%.

Stocks in Australia rose, as the S&P/ASX 200 Benchmark Index gained 0.8%.

New Zealand stocks were flat, as the S&P/NZX 50 Index held steady.

COMMODITIES

Oil futures extended their losing streak to five sessions as the market shrugged off higher U.S. tariffs against India for buying Russian crude oil and a draw in U.S. crude stocks.

The additional 25% tariff on Indian goods is due to start in 21 days, which "allows some wiggle room for three-way negotiations between Russia, India, and the U.S. that could possibly keep the oil flowing," Mizuho's Robert Yawger said.

OPEC+ output increases and the possible impact of U.S. tariffs on demand remained a drag on prices.

The EIA reported a 3 million barrel drop in U.S. crude stocks, with production and imports down on the week, exports up, and refineries running near flat out at 96.9% of capacity.

"All the crude oil moving pieces were bullish in today's report," Yawger added.

WTI settled down 1.2% at $65.35 a barrel and Brent fell 1.1% to $66.89.

Gold futures snapped a 3-day winning streak, inching lower ahead of President Trump's August 7 tariff deadline.

"Today's retreat in gold prices appears to be a result of light profit-taking ahead of the impending end of the U.S. pause on reciprocal tariffs," said Peter Cardillo of Spartan Capital.

Front-month gold closed the day down 0.1% to $3,380 a troy ounce.

   
 
 

TODAY'S TOP HEADLINES

Trump doubles tariffs on India to 50%. Why the big issue is Vladimir Putin and Russian oil.

President Donald Trump is doubling tariffs on India over its purchases of Russian oil, slapping levies of 50% on the U.S. ally as Moscow's war in Ukraine drags on.

"I find that the government of India is currently directly or indirectly importing Russian Federation oil," Trump said in an executive order Wednesday.

The extra 25% tariffs are scheduled to take effect in three weeks. They would come on top of a previously announced 25% "reciprocal" tariff on India.

   
 
 

Kashkari leans toward rate cut as concerns about an economic slowdown grow at the Fed

Minneapolis Federal Reserve Bank President Neel Kashkari on Wednesday said recent signs the economy is slowing have bolstered the case for an interest-rate cut "in the near term."

In an interview with CNBC, Kaskhari said that while it might not be known for a year or more whether new White House tariffs on trading partners will result in persistent inflationary pressures, the data in hand clearly show the economy is slowing.

"That tells me, as one policymaker, I need to start leaning more on the data that I've got confidence in - the economy is slowing - and that means, in the near term, it may become appropriate to start adjusting the federal-funds rate," Kashkari said.

   
 
 

Trump Plans to Meet With Putin to Discuss Ending Ukraine War

President Trump intends to meet soon with Russian President Vladimir Putin, a senior administration official said Wednesday, after an offer Russia made during a trip to Moscow by special envoy Steve Witkoff.

Trump is open to meeting with his Russian counterpart and Ukrainian President Volodymyr Zelensky, the official added. It isn't clear when and where the meeting would take place.

The meeting would be among the most dramatic moments yet of Trump's second term. He plans to square off with Putin in a confrontation of serious consequence: ending Russia's invasion of Ukraine.

   
 
 

DoorDash Revenue Rises on Higher Online-Ordering Demand

DoorDash's second-quarter revenue rose, boosted by continued growth in online restaurant and grocery-store orders, exceeding Wall Street's expectations.

The food-delivery app maker on Wednesday swung to a profit of $285 million, or 65 cents a share, compared with a loss of $157 million, or 38 cents a share, last year.

Second-quarter revenue jumped to $3.28 billion, from $2.63 billion, beating Wall Street expectations of $3.16 billion, according to FactSet.

   
 
 

Airbnb Sales, Bookings Boosted by Travel Demand Rebound

Airbnb logged higher earnings and sales in the second quarter as travel demand picked back up despite economic uncertainty.

The vacation rental platform on Wednesday posted a profit of $642 million, or $1.03 a share, in the quarter ended June 30, compared with $555 million, or 86 cents a share, a year earlier. Analysts forecast 94 cents a share, according to FactSet.

Revenue rose 13% to $3.10 billion. Analysts surveyed by FactSet forecast revenue of $3.03 billion. Sales were boosted by growth in nights stayed, a slight increase in average daily rate, and the timing of Easter, Airbnb said.

   
 
 

Apple to Announce Additional $100 Billion Investment in American Manufacturing

Apple will pledge to invest another $100 billion in U.S. operations at a White House event on Wednesday, adding to the tech industry's efforts to meet President Trump's request to expand domestic manufacturing.

Trump is also expected to meet with Jensen Huang, the chief executive of chip designer Nvidia, at the White House Wednesday, people familiar with the matter said. Huang has become one of Trump's favorite business executives.

Investors hope appeals by Huang, Apple CEO Tim Cook and other business leaders can limit the economic damage from tariffs. Apple shares were up nearly 6% in early afternoon trading Wednesday.

   
 
 

Disney Forecasts Stronger Streaming, Parks Growth as Cord-Cutting Continues

Disney increased profit forecasts for its streaming and experiences businesses in its current fiscal year, signs that it is gaining momentum in two key areas as its legacy TV business struggles.

The entertainment company said in earnings released Wednesday that it expected to generate $1.3 billion of operating income from its direct-to-consumer streaming business in the fiscal year ending in September, up from an earlier forecast of $1 billion.

The Burbank, Calif., company also expects operating income from the division that includes theme parks, cruise ships and consumer products to grow 8% in the current fiscal year-at the top end of previously stated guidance.

   
 
 

McDonald's Sales Rebound After Burger Giant Hammers Value Message

McDonald's effort to rebuild its reputation for fast, affordable food is showing signs of paying off, but executives said there is more work to do.

The world's biggest burger chain reported Wednesday that its global same-store sales grew 3.8% in the three months ended June 30, outpacing analysts' estimates. In the U.S., same-store sales rose 2.5% as a result of increasing check sizes, McDonald's said.

The results represented a rebound from McDonald's previous four quarters, when global same-store sales dropped or were little changed. Still, Chief Executive Chris Kempczinski said that many U.S. consumers remain pressured, with lower-income customers' fast-food visits as a whole falling by double digits compared with the prior-year period.

   
 
 
   
 
 

Expected Major Events for Thursday

01:30/AUS: Jun International Trade in Goods & Services

02:00/PHI: 2Q GDP

03:00/NZ: RBNZ Survey of Expectations

03:00/SKA: KDI Economic Outlook Update

04:01/MAL: Jun Industrial Production Index

04:01/MAL: Jun Manufacturing sales

05:00/JPN: Jun Indexes of Business Conditions - Preliminary Release

07:00/MAL: Jul International Reserves, end of month

08:30/HK: Jul Foreign Exchange Reserves

09:00/SIN: Jul Official Foreign Reserves

09:59/PHI: Jul Gross International Reserves

09:59/CHN: Jul Foreign Exchange Reserves

09:59/CHN: Jul Trade

09:59/CHN: Jul Commodities Trade Data

09:59/CHN: Jul Energy Trade Data

10:59/INA: Jul International Reserves

23:30/JPN: Jun Household Spending

23:50/JPN: Jul Bank Lending

23:50/JPN: Jun Balance of Payments

23:50/JPN: Jul International Transactions in Securities

All times in GMT. Powered by Onclusive and Dow Jones.

Write to us at singaporeeditors@dowjones.com

We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.

This article is a text version of a Wall Street Journal newsletter published earlier today.

 

(END) Dow Jones Newswires

August 06, 2025 16:55 ET (20:55 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment