Another “tariff” week is behind us, and fortunately without significant losses, although the tension has not gone away, on the contrary, and we can expect anything. But first things first… This is a quick review from Ivan Kompan, Edinburgh Business School analyst.
On the corporate front, things look solid. Banks reported strong results, and volatility helped traders earn billions. Netflix impressed with better-than-expected earnings and an optimistic forecast. However, Trump’s geopolitical battles are already casting a shadow.
Nvidia, a former star, announced the relocation of manufacturing to the US — a win for Trump. Yet the very next day, the US government restricted exports of its H20 chip to China. AMD’s MI308 chip was also affected. Nvidia warned of a $5.5 billion hit, and CEO Jensen Huang rushed to China to negotiate — though chances of success seem slim.
The week’s key event was a new conflict between Trump and Fed Chair Jerome Powell. Powell said the Fed would wait for “greater clarity” before adjusting rates, citing inflation risks and slower growth due to tariffs. Trump lashed out, called Powell “terrible,” and hinted at firing him.
There are four possible outcomes: Powell complies, resigns, stays until 2026, or is forcibly removed — the last being most harmful to markets.
Despite no immediate catastrophe, investors are spooked: $6.5 billion flowed out of US equity funds — the second-largest outflow since 2017. If foreign investors start exiting en masse, turbulent times lie ahead.
*And finally, we would like to remind you that the information you have just listened to is not an investment advisory. Remember – investments in the stock market are always tied up with financial risks. So be careful and cautious.
