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Rising U.S. Tariffs Drive U.S. and Japanese Markets to Records as Indian Stocks Plunge

Steep duties on chips imported to the United States alongside 50% levies on Indian goods have intensified expectations of Fed rate cuts

Overview

  • The S&P 500 climbed 0.8% and the Nasdaq Composite gained 1%, positioning U.S. stocks for a third weekly advance on strong corporate earnings.
  • Japan’s Topix remains at an all-time high supported by robust domestic earnings and spillover from Wall Street gains despite six months of falling real wages.
  • India’s Sensex and Nifty tumbled to three-month lows following President Trump’s 50% tariff on Indian exports and sustained foreign fund outflows.
  • President Trump has announced a 100% tariff on semiconductor imports from nations without U.S. production plans and has paused further trade talks with India.
  • Market participants now see a high probability of Federal Reserve interest rate cuts as early as September in response to mixed economic signals and elevated trade tensions.