Apple announced the largest investment in its history in American companies and manufacturing. Ilon Musk's SpaceX competitor Firefly Aerospace, a rocket company with a valuation of $6.3 billion, is entering the market. Donald Trump announced that he will impose a 100% duty on chip imports, and also raised tariffs on Indian goods to 50% in response to the purchase of Russian oil. On these and other topics - in our review of key events for the morning of August 7.

Trump announced a 100% duty on semiconductors

Donald Trump announced that he would impose a 100 percent rate on imports of semiconductors and microchips. However, he assured that the levies would not apply to companies that have pledged to produce semiconductors in the U.S. or are already building a production facility there.

Trump did not name the exact conditions for the duty exemption, including the amount of U.S. production that companies must ensure, noted CNBC. He had previously warned that the levy could go into effect as early as next week.

Shares of Nvidia and TSMC depositary receipts fell by 1.5% in the postmarket, but quickly recovered their losses. Intel shares jumped more than 3%.

Oil prices jumped after news of a higher duty on chips, noted CNBC: Both Brent and WTI futures rose more than 1 percent before trimming losses to remain in plus territory by about 0.6 percent.  

Trump doubles duties on goods from India in retaliation for buying Russian oil

Donald Trump increased duties on Indian goods by up to 50 percent as punishment for Russian oil purchases, escalating a standoff with a key Asian partner and sparking outrage in New Delhi, reports Bloomberg.

According to a White House statement, Trump signed an executive order imposing an additional 25 percent rate on imports from India, which will add up to a similar tariff previously announced. The increased levy will take effect within 21 days, leaving time for possible negotiations.

The Indian government said oil from Russia is essential for the country's energy security and condemned Trump for being selective as other nations also continue to buy the commodity. India will take all necessary measures to protect its national interests, the Foreign Ministry said.

The Indian market reacted by falling, with the Nifty 50 index down 0.6 percent in August 7 trading.  

SpaceX competitor goes public at $6.3 billion valuation

Texas-based rocket company Firefly Aerospace set its IPO share price at $45 on Wednesday, exceeding its expected range, reports CNBC. It debuted on the Nasdaq exchange on Thursday under the ticker FLY. The offering raised $868 million, bringing the company's total valuation to about $6.3 billion.

Firefly filed an initial prospectus in July, and this week raised its price range from $35-39 to $41-43 per share.

Investor interest in space technology is growing, with billionaires like Ilon Musk (SpaceX) and Jeff Bezos (Blue Origin) investing in the sector. Since the beginning of the year, space companies Voyager Technology and Karman Holdings have already gone public.

Apple to invest $100 billion in U.S. companies

Apple CEO Tim Cook and Donald Trump announced that the iPhone maker will invest an additional $100 billion in U.S. companies and suppliers over the next four years. The company said the investment should encourage overseas firms to buy more U.S. components. The commitment is in addition to the $500 billion already announced in February.

"This is Apple's largest investment in history, both in the United States and in other countries," Trump said. - Apple used to invest a little bit in other nations, I won't say which ones, but now they're coming home."

Apple's stock jumped nearly 6 percent on the news during mainstream trading on Aug. 6.

Nancy Tengler, head of investment firm Laffer Tengler Investments called Apple's announcement "a smart move in response to the president's demands to move iPhone production to the U.S.," Reuters reports. She said the stock's rise after the news is a sort of relief rally: "Tim Cook, who previously remained silent under the onslaught of [Trump's] criticism, is now extending [him] an olive branch."  .

What's in the markets

- Japan's broad Topix index rose 0.6 percent, while the Nikkei 225 added 0.5 percent.

- In South Korea, the Kospi index was up 0.7 percent, while the Kosdaq small-company index was trading close to the previous close.  

- Australia's S&P/ASX 200 was down 0.1 percent.

- Futures on the S&P 500 and Nasdaq 100 rose about 0.2%, the price of contracts on the Dow Jones Industrial Average did not change.

This article was AI-translated and verified by a human editor

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