U.S. President Donald Trump reversed his earlier proposal to impose fees on ships transiting the Strait of Hormuz, announcing instead that Gulf states will make investments in the U.S. as compensation for American protection of the waterway. Despite ongoing U.S. strikes on Iran, oil prices rose, but U.S. stock markets remained resilient, with all three major indexes closing in positive territory. This optimism was supported by a cooler-than-expected inflation figure of 3.5%, and chip stocks played a significant role in driving equity markets higher [1].
A major exception to the market's gains was IBM, whose shares plummeted 25%—the worst day on record for the company—after releasing preliminary second-quarter results that failed to meet expectations [1]. In contrast, Nvidia's prospects may be improving, as Under Secretary of Commerce for Industry and Security Jeffery Kessler told Congress that 'very few' of Nvidia's H200 AI chips have been shipped to China and Hong Kong, suggesting that shipments may have restarted and could potentially boost Nvidia's sales. Nvidia has not included potential Chinese AI chip revenue in its forecasts since last year [1].
Federal Reserve chairman Kevin Warsh maintained a hawkish stance on inflation during Congressional testimony, labeling it an 'unfair burden' and calling for a 'regime change' in central bank policy. Warsh emphasized the need to eliminate what he described as a 'tax' on Americans and businesses, signaling possible shifts in monetary policy ahead [1].
In Asia, markets tracked Wall Street's gains, with most major indexes rising and U.S. futures also in positive territory. Investors are awaiting key economic data from China, including second-quarter GDP, retail sales, and investment figures, which could further influence market sentiment [1].
Separately, Warren Buffett announced he is accelerating his charitable donations, aiming to give away all his Berkshire Hathaway shares—currently valued at over $140 billion—by 2034. Buffett has increased the pace of his annual donations, distributing nearly $6 billion to four family foundations this year, and stated his intention to dispose of all his Berkshire shares within about eight years [1].
CONCLUSION
Trump's reversal on Hormuz tolls and ongoing U.S. strikes on Iran lifted oil prices but did not dampen U.S. equity markets, which were buoyed by lower inflation and strong chip stocks. IBM's record share drop and Nvidia's potential sales boost to China were notable stock-specific moves. Warren Buffett's accelerated donation plan and upcoming Chinese economic data add further market interest.