Tesla, Microsoft, and Illumina: Top Analyst Picks Amid S&P500 Decline

The S&P 500 closed in the red on Friday, after a week of major headlines including President Trump announcing a 50% tariff on copper imports and Nvidia becoming the first company to surpass $2 trillion in market value. Notable analyst calls this week include Tesla, Microsoft, and Illumina among top picks.

The S&P 500 closed in the red on Friday, reflecting a week marked by significant financial news, including President Trump's announcement of a 50% tariff on copper imports and Nvidia's milestone of becoming the first company to surpass $2 trillion in market value. Additionally, notable analyst calls this week featured Tesla, Microsoft, and Illumina among top picks.

Copper Tariff Announcement

President Trump announced a 50% tariff on copper imports, set to take effect on August 1, 2025, following a national security assessment [1]. This decision aims to bolster domestic production and secure critical materials essential for various industries, including semiconductors, aircraft, and defense systems. The tariff is expected to have substantial implications for industries that rely heavily on copper, such as construction, automotive, and electronics.

Copper futures rose dramatically following the announcement, pushing domestic prices to a 25% premium over global markets amid growing demand. This tariff could lead to increased costs and potential supply chain disruptions for industries dependent on copper, impacting production timelines and pricing structures.

Market Reactions

The tariff's effectiveness in achieving its stated goals remains a subject of debate. Some argue that it will boost domestic production and enhance national security, while others express concerns about the potential negative impacts on American manufacturers who rely on imported copper. The tariff's long-term effects will depend on various factors, including the response of domestic and international markets, as well as the effectiveness of alternative supply chain strategies.

Nvidia's Market Milestone

Nvidia's achievement of surpassing $2 trillion in market value marks a significant milestone in the technology sector. The company's success underscores the growing importance of semiconductor technology and its applications in areas such as artificial intelligence, data centers, and autonomous vehicles. This milestone could have broader implications for the tech industry, potentially driving further innovation and investment in related sectors.

Analyst Calls

Notable analyst calls this week included Tesla, Microsoft, and Illumina. Tesla, in particular, faced a downgrade from William Blair analyst Jed Dorsheimer, who cited the "Big Beautiful Bill" as a potential "too much" for Tesla stock to overcome. The bill aims to make it more expensive for consumers to buy electric vehicles and provide less credits for EV companies, which could negatively impact demand and profitability for Tesla.

Microsoft and Illumina also received analyst attention, with both companies being highlighted as top picks by various analysts. These analyst calls reflect the ongoing optimism about the long-term prospects of these companies, driven by their strong market positions and innovative technologies.

Conclusion

The S&P 500's closing in the red on Friday reflects the market's response to significant financial news, including President Trump's copper tariff announcement and Nvidia's market milestone. The tariff's long-term effects and the industry's response will be crucial factors to watch in the coming months. Meanwhile, analyst calls continue to shape investor sentiment, with Tesla, Microsoft, and Illumina among the top picks this week.

References:
[1] https://www.foxbusiness.com/live-news/nvidia-s-4-trillion-mark-copper-crackdown-trump-s-tariff-slaps-live-updates
[2] https://www.ainvest.com/news/trump-announces-50-tariff-copper-imports-starting-2025-2507/
[3] https://www.benzinga.com/analyst-stock-ratings/downgrades/25/07/46308347/trumps-big-beautiful-bill-too-much-for-tesla-stock-direct-hit-to-profitability