Market Wrap | Market Volatility as Trump Nominates Fed Member and Rate Cut Looms

On August 7, 2025, the S&P 500 Index fell 0.08%, the Dow Jones Industrial Average dropped 0.51%, and the Nasdaq Composite Index rose 0.35%. The market movements came as U.S. President Trump nominated MIRAN to serve as a member of the Federal Reserve Board until January 2026. Additionally, CME's "FedWatch" tool indicated a 93.6% probability of a 25 basis point rate cut by the Federal Reserve in September. These developments are significant for the U.S. stock market, as they offer insights into potential changes in monetary policy, which can influence investor sentiment and market dynamics.

Based on the current market performance, several sectors have shown mixed results compared to the S&P 500. The healthcare, energy, communication services, industrial, and financial sectors underperformed the broader market. Conversely, the utilities, technology, consumer staples, materials, and real estate sectors demonstrated resilience and posted gains despite the overall market conditions.

TSMC's stock surged by 4.86% today, driven by the exemption from a 100% semiconductor tariff. This news has significantly boosted investor confidence in the company's future prospects. Apple's shares climbed over 3.18% after the tech giant announced a $100 billion investment in U.S. production, a move aimed at avoiding tariffs on chips. ASML Holding's stock rose by 3.21%, fueled by a strong Q2 earnings report that has garnered positive investor interest and market sentiment. Novo Nordisk's shares rose by 7.45%, benefiting from Eli Lilly's disappointing obesity pill results, which has strengthened Novo Nordisk's market position.

CIMG shares surged over 113%, driven by its global expansion strategy and partnership initiatives that have bolstered investor confidence. Aveanna Healthcare rose nearly 49%, following a strong Q2 performance and an upward revision of its full-year guidance, which has further boosted investor optimism. Meanwhile, Sabre's stock dropped over 35%, as the company reported sales that fell short of analyst expectations, signaling weaker demand and market performance. Redwire's shares declined over 30%, after the company reported a $1.41-per-share GAAP loss and worse-than-expected sales, leading to a forecasted full-year sales miss.

Intel is addressing comments made by Trump, who called for the resignation of its CEO due to alleged conflicts of interest. Despite this, Intel remains committed to U.S. national and economic security and plans to continue collaborating with the government. Meanwhile, Tesla is reportedly disbanding its Dojo supercomputer team, which affects its AI project development. This shift may increase Tesla's reliance on external technology partners like Nvidia and AMD for computing needs. Additionally, Apple and Samsung are collaborating on innovative chip manufacturing technology at Samsung's Austin, Texas factory, aiming to enhance iPhone components with improved power and performance. Lastly, Meta has acquired AI audio startup Waveforms, indicating a strategic move into advanced AI technologies.