Stock Market Today: Dow Futures Slip, S&P 500 Rises As Trump Files Tariff Appeal—American Eagle, Salesforce, Lululemon In Focus
News Summary
U.S. stock futures were mixed on Thursday following a volatile Wednesday, with Dow futures slipping while S&P 500 and Nasdaq futures edged higher. The Trump administration has filed an appeal with the Supreme Court, seeking an expedited review after a federal appeals court ruled he overstepped his authority on tariffs. President Trump emphasized that these tariffs are critical for recent trade agreements with allies like the EU, Japan, and South Korea. Markets are pricing in a 97.5% likelihood of a Federal Reserve interest rate cut on September 17. Economic data for July 2025 showed U.S. job openings and manufactured goods orders both declined, falling short of expectations and contributing to negative sentiment. Despite this, communication services and information technology sectors performed strongly, leading the Nasdaq Composite to gain 1%. Analysts suggest the Trump administration has a "backup plan" to maintain tariffs through Section 122 and 301 of the Trade Act, even if the Supreme Court rules against them. Meanwhile, gold's relentless rally in 2025 is expected to continue, driven by rising wealth in India, investor anxiety in China, and Trump's geopolitical reordering, with targets potentially reaching $3,735 or even $4,000.
Background
In 2025, President Trump, having been re-elected, continues to pursue his "America First" agenda, particularly in trade, where tariffs remain a central policy tool. A federal appeals court had previously ruled that President Trump overstepped his authority regarding tariffs, posing a significant challenge to his administration's trade strategy. The Federal Reserve is under strong market pressure to cut interest rates, indicating concerns about slowing economic growth or inflation management. Amidst heightened global economic uncertainty, gold has seen a sustained rally in 2025, outperforming the S&P 500 as a safe-haven asset. The collapse of China's housing market and geopolitical tensions further fuel the demand for gold.
In-Depth AI Insights
What are the long-term implications of the Trump administration's tariff "backup plan" for U.S. trade policy? - The strategy of utilizing Section 122 (temporary tariffs) and Section 301 (long-term trade investigations) of the Trade Act, even with a potentially unfavorable Supreme Court ruling, signals the Trump administration's commitment to its protectionist stance. - This means U.S. businesses, particularly those reliant on global supply chains or affected by tariffs, will face prolonged uncertainty. While a temporary lifting of tariffs might offer a brief boost, persistent trade friction is the likely long-term outlook. - This approach can also be seen as a strategic leverage, aiming to compel trade partners into greater concessions in new trade agreements through continuous tariff threats. Gold is showing a strong rally in 2025; what are the deeper, structural drivers behind this trend? - Beyond traditional safe-haven demand (geopolitical uncertainty, threats to Fed independence), the rising wealth in emerging markets like India is generating sustained private sector demand for gold. - Investor anxiety stemming from China's housing sector collapse is driving capital towards safer assets, with gold being a primary beneficiary. This reflects profound concerns about China's structural economic risks. - President Trump's attempts to "reorder the world's geopolitical order," regardless of their immediate outcomes, are likely to continue unsettling markets, thereby providing long-term support for gold. What do the recent U.S. economic data (declining job openings and manufacturing orders) combined with aggressive Fed rate cut expectations signify for investors? - The decline in job openings and manufacturing orders suggests a potential softening of U.S. economic momentum, providing fundamental justification for the Federal Reserve's anticipated rate cut in September. - However, this economic slowdown could also indicate looming pressure on corporate earnings growth, especially in cyclical sectors. While rate cuts might boost risk asset sentiment, investors should be wary of a potential shift from a "soft landing" to a "hard landing" scenario. - The market's favoritism towards communication services and information technology sectors likely reflects a preference for industries with stable growth or innovative advantages during times of economic uncertainty, rather than traditional, macro-sensitive sectors.