Key Takeaways
The U.S. stock market is poised for a strong open as Dow futures jump 300 points, driven by President Donald Trump’s anticipated UK trade deal and broader geopolitical shifts. Meanwhile, tech giants face mounting pressure as AI integration threatens traditional search engines, and beverage companies report mixed results amid evolving consumer trends.
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1. Trump’s UK Trade Deal Sparks Market Reactions
President Donald Trump is set to announce a trade deal with the United Kingdom on Thursday, marking his first major agreement since April’s tariffs on British steel and autos. The deal, expected to ease U.S. duties on these products while the UK reduces its digital services tax on American tech firms, could signal a shift in Trump’s tariff strategy. Despite not being a full free trade pact, the agreement may signal how U.S. policies are evolving amid economic uncertainty.
Federal Reserve Chair Jerome Powell emphasized the need for more data on how tariffs impact inflation and prices, cautioning against premature policy changes. Meanwhile, global central banks are cutting rates, but the U.S. market remains sensitive to geopolitical risks, with investors closely watching the deal’s implications for trade tensions and economic stability.
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2. AI Integration Threatens Google’s Dominance
Apple’s rumored integration of AI tools like ChatGPT and Perplexity into Safari has sent shockwaves through the tech sector. Analysts note that Safari’s search volume has declined for the first time, signaling a shift toward AI-driven alternatives. Google’s dominance as the default search engine is under threat, with Alphabet (GOOGL) shares plummeting 7% on the news.
The $20 billion annual revenue from Apple’s default status complicates Google’s long-term strategy, as the tech giant seeks to retain its position in the browser market. While Apple’s shares rose 2% on the same news, both companies are gaining ahead of Thursday’s market open, reflecting investor anxiety about AI’s role in the future of search and browsing.
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3. InBev Earnings Highlight Strategic Growth
AB InBev (BUD) reported strong earnings, with nearly 8% EBITDA growth and improved margins, despite a 2.2% volume decline due to tough comps and weather
Source: EODHD
