Economy in Focus: Tensions, Tariffs, and Technological Upheavals

The stock markets show a slight increase as investors eagerly await a crucial inflation report. Pre-market, the futures of the Dow Jones Industrial Average rose by 0.2%, and those of the S&P 500 and the Nasdaq each increased by 0.1%. Despite a three-day losing streak, the major indices could still end this week with losses. In the cryptocurrency sector, the downward trend continues: Bitcoin fell below the $109,000 mark, its lowest in a month. The yield on the 10-year US Treasury bond remained steady at 4.17%, while gold hovered around $3,800 per ounce, just below recent highs. Investors are now focusing on the personal consumption report, considered a key indicator of inflation trends for the Fed. Economists expect, according to the Wall Street Journal and Dow Jones Newswires, that the annual inflation in August slightly increased to 2.7%. The inflation measure, excluding food and energy costs, is expected to remain at 2.9%, thus exceeding the Fed's target. These data are of heightened importance following a significant upward revision of GDP growth in the second quarter, indicating a resilient economy despite new tariffs. President Donald Trump recently announced new tariffs set to take effect on October 1. These include a 100% tariff on pharmaceutical imports from companies without production facilities in the US. Companies like Eli Lilly benefited pre-market with a 2% increase. In the furniture segment, sellers like Williams-Sonoma, Wayfair, and RH suffered significant losses of 3% each, as a 50% tariff is also to be imposed on kitchen furniture. In a dramatic move that made headlines, Trump signed an order transferring TikTok's US operations under American management, thus averting a potential ban of the Chinese app. The US group, which includes Oracle and Dell executives, will manage TikTok's American business. The strong rise in Intel shares continued, driven by the expectation that Apple might significantly invest in the company in the future.