US stocks rise at midday. Gold soars to record high on surprise tariff
U.S. stocks held gains around midday, on pace to end the week higher on a mix of earnings, tariff and Federal Reserve personnel news.
Hopes of a deal that ends the Russia-Ukraine war also boosted sentiment. President Donald Trump and Russia President Vladimir Putin could meet as early as next week, Bloomberg reports.
Gold prices climbed to a record high on reports of a new and surprising Trump tariff on the yellow metal. Bitcoin and Ethereum are also having a good week after Trump signed an executive order allowing cryptocurrency into 401(k) investments and nominated a Bitcoin supporter to take a temporary role as a Federal Reserve member.
At 12:40 p.m. ET, the blue-chip Dow rose 0.48%, or 209.53 points, to 44,178.17; the broad S&P 500 added 0.76%, or 48.40 points, to 6,388.40 and the tech-laden Nasdaq gained 0.91%, or 194.06 points, to 21,436.76. The benchmark 10-year Teasury yield edged up to 4.283%.
Gold tariff?
Gold prices jumped to a record high after the Financial Times said the U.S. put a 39% reciprocal tariff on imports of one-kilo gold bars. This would hit refining hub Switzerland, the Financial Times reported, citing a letter from U.S. Customs and Border Protection.
Other key refining hubs include Hong Kong and London, where gold is also trading at a discount to the U.S. market, Bloomberg said.
This could cause trouble for U.S.-Switzerland trade talks. Switzerland has the highest country tariff among developed countries, and Swiss President Karin Keller-Sutter made an emergency trip to Washington this week to make a deal to reduce it. However, she was denied a meeting with Trump.
Gold was last up 1.02% at $3,489 per ounce.
Corporate news
- Block reported second-quarter earnings per share that missed analysts' forecasts but boosted its full-year outlook. Shares fell 2.6%.
- AMC Networks reported stronger-than-expected quarterly results. The stock jumped 14.17%.
- Gilead Sciences boosted its full-year outlook. Shares rose 8.83%.
- Sportswear market Under Armour warned its fiscal second-quarter results would come in below analysts' expectations. Its first-quarter sales topped forecasts but its loss per share was wider than estimates. Shares tumbled 21.61%.
- Pinterest's second-quarter sales beat expectations but earnings per share missed estimates. Current quarter revenues are expected to top forecasts. Shares slid almost 9%.
- Expedia topped second-quarter adjusted earnings per share expecations and lifted its full-year revenue guidance. Shares rose more than 3%.
- Rocket Lab reported record revenues in the second-quarter though its loss widened from a year ago. Shares jumped 5%.
- SoundHound posted a narrower-than-expected adjusted loss per share in the second quarter and sales topped estimates. The artificial intelligence voice company also lifted its full-year revenue guidance. Stock jumped 28.45%.
- Motorola posted better-than-expected results and raised annual guidance. It said it is working on mitigating tariff effects. Shares rose 2.09%.
- Trade Desk just topped second-quarter estimates and current quarter sales guidance. Shares slumped 37.61%.
- General Motors will continue buying electric vehicle batteries from China despite tariffs. Shares edged up.
- Sweetgreen missed second-quarter estimates and lowered its annual outlook. Shares tumbled 27%.
- Flutter topped second-quarter forecasts and raised its full-year guidance. Shares slumped 7.5%.
- Microchip Technology's results in the first three months of its fiscal year beat forecasts and guidance for the current quarter was in line with estimates. Shares dropped 5.39%.
- Instacart's results beat forecasts in the second quarter. The grocery delivery company gave strong guidance, too. Shares added 5.28%.
- Nextdoor's slashing 12% of its workforce, or 67 jobs. Its chief financial officer also is stepping down. Shares rose 9%.
Cryptocurrency
Stephen Miran, chair of the Council of Economic Advisors and Trump's pick to to serve the roughly six months remaining in the term of former Fed Governor Adriana Kugler, who resigned on Aug. 1., is a Bitcoin supporter. He has been a critic of the Fed and publicly posted supportive comments on social media.
“I think that crypto has a big role potentially to play in innovation and ushering in another Trump Administration economic boom,” he previously stated.
Bitcoin was last down 1.19% at $116,138.20. Ethereum hit a seven-month high and was last up 1.19% to $3,965.31.
(This story was updated with new information.)
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.