The S&P 500 Index is up +0.48%, the Dow Jones is up +0.39%, and the Nasdaq 100 is up +0.71%. September E-mini S&P futures climbed +0.53%, and September E-mini Nasdaq futures increased +0.79%. This market movement is attributed to President Trump’s announcement of exemptions from a proposed 100% tariff on chip imports for companies building their products in the U.S., along with improved sentiment from upcoming talks between Presidents Putin and Trump over the war in Ukraine.
U.S. jobless claims reported an increase of +7,000 to 226,000, exceeding expectations of 222,000. Weekly continuing claims rose +38,000 to a 3.75-year high of 1.974 million. In contrast, Q2 nonfarm productivity rose +2.4%, surpassing expectations of +2.0%. Speculations suggest a 92% chance of a Federal Reserve rate cut at the September meeting, up from 40% a week prior due to weakening labor market indicators.
In international news, China’s July exports increased +7.2% year-on-year, higher than the anticipated +5.6%. The Bank of England has lowered its official bank rate by -25bps to 4.00%. Notably, stock performances on major indexes reflect market optimism as over 67% of S&P 500 firms have reported Q2 earnings, with approximately 83% exceeding profit estimates.
