Markets
Nia Warfield

Stocks hit record high as July inflation data bolsters rate cut bets

Stocks shot to fresh intraday records Tuesday after in-line July inflation data fortified bets that the Federal Reserve would deliver its first interest rate cut of 2025 next month. The S&P 500 rose 1.1%, the Nasdaq 100 climbed 1.3%, and the Russell 2000 soared 2.9%.

That marked the S&P 500’s first record close of August, with the tech-heavy Nasdaq 100 booking a record close as well.

All 11 S&P 500 sector ETFs went positive on the day, with communication services, tech, and materials leading the way.

Gains on the day were led by chip stocks NXP and On Semiconductor, which jumped 7.2% and 6.1%, respectively. Declines were led by law enforcement equipment maker Axon Enterprise, which fell 6.1%. Elsewhere…

Meta jumped 3.1%, ending the day at $790 — its highest closing price in history. The stock has been on a tear following a series of excellent earnings reports.

Shares of On Holding leapt 8.9% after the Swiss sneaker maker reported strong Q2 sales and offered a sunny outlook as the brand gains traction in the “RTO apparel” market.

D-Wave Quantum were up 6.5% to close the day. Sherwood News spoke with its CEO, following the quantum computing company’s Q2 sales beat last week, about its potential to expand into AI model training.

e.l.f. Beauty shares rose another 4.5% after Morgan Stanley upgraded shares of the popular cosmetics brand to “overweight” and hiked its price target to $134 from $114 on Monday.

Five Below shares also bounced 4.5% after Loop Capital hiked its rating on the stock from “hold” to “buy” and lifted its price target to $165.

Tilray shares climbed 3.2%, extending a rally, as investors continue to pile into the cannabis company, fueled by a report that President Trump is considering weed reform.

Circle shares ticked up 1.3%, paring back from a 15% premarket surge after the fintech firm’s first earnings report as a public company topped revenue estimates but missed on earnings per share.

Nvidia closed largely flat despite a new report from The Information saying that China’s internet regulator has ordered local tech companies to suspend their purchases of Nvidia chips.

Spirit Airlines shares plunged 40% after the discount airliner issued a dire warning about its ability to survive as a going concern without more cash. Rival airlines including Delta, American, Southwest, and JetBlue were all up amid this news and inflation data showing a jump in ticket prices for July.

Plug Power dipped 3.4% after the hydrogen fuel cell developer reported mixed second-quarter results after the bell on Monday, but said it plans to achieve gross margin breakeven in Q4.

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markets
Max Knoblauch

Lucid cuts 12% of its US workforce in a profitability push

EV maker Lucid announced on Friday it is laying off 12% of its US workforce as part of its efforts to improve profitability.

This is Lucid’s third round of layoffs since March 2023. At the end of 2024, the company said it had 6,800 employees globally.

“This difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” interim CEO Marc Winterhoff told employees in an email published by Business Insider. The company has been without a permanent CEO since February 2025.

Lucid has worked to boost its cash reserves in recent months. Late last year it announced plans to raise $875 million through a private offering of convertible senior notes due in 2031.

Lucid Motors slashes 12% of its workforce as it seeks profitability | TechCrunch

Lucid Motors slashes 12% of its workforce as it seeks profitability | TechCrunch

“This difficult but necessary decision was made to improve operational effectiveness and optimize our resources as we continue on our path toward profitability,” interim CEO Marc Winterhoff told employees in an email published by Business Insider. The company has been without a permanent CEO since February 2025.

Lucid has worked to boost its cash reserves in recent months. Late last year it announced plans to raise $875 million through a private offering of convertible senior notes due in 2031.

markets
Max Knoblauch

The Supreme Court’s tariff ruling isn’t sweeping relief for automakers, but it isn’t nothing either

The Supreme Court on Friday struck down a significant chunk of President Trump’s tariffs, but the decision isn’t a cause for automakers to fully exhale.

Friday’s ruling relates to tariffs imposed under the International Emergency Economic Powers Act and not Section 232. The 25% tariffs on automobiles and auto parts were imposed under Section 232, so those tariffs remain in place.

Still, it’s worth noting that automakers including Ford, GM, and Stellantis aren’t completely on the outside looking in. IEEPA tariffs did cover certain machinery, lower-cost raw materials, and components, which account for a small chunk of automaker production costs.

According to the Center for Automotive Research, IEEPA tariffs account for about $250 per vehicle for the big three Detroit automakers, or $902 million in costs. That’s a far cry from the Section 232 tariff impact of $4,240 per vehicle, per the think tank, but it’s not nothing.

The modest bump in auto stocks compared to retailers on Friday reflects the light relief.

Stocks jump after Supreme Court strikes down Trump’s reciprocal tariffs

Stocks jump after Supreme Court strikes down Trump’s reciprocal tariffs

Still, it’s worth noting that automakers including Ford, GM, and Stellantis aren’t completely on the outside looking in. IEEPA tariffs did cover certain machinery, lower-cost raw materials, and components, which account for a small chunk of automaker production costs.

According to the Center for Automotive Research, IEEPA tariffs account for about $250 per vehicle for the big three Detroit automakers, or $902 million in costs. That’s a far cry from the Section 232 tariff impact of $4,240 per vehicle, per the think tank, but it’s not nothing.

The modest bump in auto stocks compared to retailers on Friday reflects the light relief.

Luke Kawa
6h
Supreme Court strikes down Trump’s reciprocal tariffs; Trump responds with 10% global tariff

The president said he has “great alternatives” and can charge even more than he was charging.

President Trump Holds "Make America Wealthy Again Event" In White House Rose Garden
markets
Luke Kawa

Nvidia nears $30 billion investment in OpenAI’s funding round, the FT reports

Nvidia is close to investing $30 billion in OpenAI as part of its long-discussed funding round, per the Financial Times.

Bloomberg had previously reported that Nvidia would be investing $20 billion in this round.

The FT says that this investment will effectively be replacing a bigger planned pact between the two companies. The Wall Street Journal had originally reported in late January that Nvidia’s investment of up to $100 billion in OpenAI, which was announced in September, had “stalled” amid private criticisms of the ChatGPT maker by CEO Jensen Huang.

As Microsoft, SoftBank, or Oracle could tell you, being viewed as overly exposed to OpenAI has not been a boon for stocks in recent months.

Luke Kawa
6h
Opendoor rises as JPMorgan boosts earnings estimates following Q4 results

New CEO Kaz Nejatian said the cohort of homes purchased in October, his first full month running the company, is poised to be Opendoor’s most profitable October ever.

Open Sign Hangs From Store's Front Door

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