Apple Soars 5% on $100B Manufacturing Pledge

Apple jumped 5.1% on Wednesday after a White House official said the company will announce a $100 billion commitment to domestic manufacturing, helping lift the Nasdaq by over 1%. BP and Hiscox boosted the FTSE 100, while AstraZeneca and GSK fell following news of new US tariffs on pharmaceuticals. Gold eased to $3,373 per ounce even as the dollar continued to come under pressure.

Equities

The FTSE 100 rose 0.2% on Wednesday, closing higher for a third straight session as investors looked ahead to a possible Bank of England rate cut. BP closed up 3.1%, while Shell gained 1.3%, tracking the rise in crude oil prices after President Trump imposed new tariffs on Indian imports in response to continued Russian oil purchases.

Hiscox led the index with a 9.4% rise after reporting a 6.2% increase in first-half net insurance premiums. Fresnillo added 8.9%, extending gains after a strong earnings update the day before.

Healthcare stocks were under pressure after the US said it would introduce new tariffs on pharmaceutical imports. AstraZeneca fell 1.5%, while GSK dropped 1.7%. Coca-Cola Europacific Partners and Coca-Cola HBC slid 9.2% and 6.9% respectively, following weak outlooks in their latest trading updates. Glencore dropped 5.4% after posting a 14% fall in first-half profit. In the FTSE 250, TP ICAP fell 8.1% after reporting half-year operating profit below expectations.

In the US, the Nasdaq gained 1.2% and the S&P 500 rose 0.7%, with both indices supported by strong corporate updates and growing expectations of a September rate cut. Apple jumped 5.1% after a White House official said the company would soon announce a $100 billion domestic manufacturing pledge. McDonald’s climbed 3% as global sales beat forecasts, helped by its affordable menu offering. Arista Networks surged 17.5% after guiding for stronger-than-expected revenue this quarter.

On the downside, Advanced Micro Devices fell 6.4% after posting weaker results in its data centre segment, while Super Micro Computer sank 18.3% on similarly disappointing news. Disney eased 2.7% despite a solid quarter and raised full-year guidance.

Roughly 400 of the S&P 500 companies have now reported second-quarter earnings, with around 80% beating analyst estimates. Earnings growth for the quarter is tracking at 12.1%, up from 5.8% at the start of July.

Forex & Commodities

The US dollar remained under pressure on Thursday, with investors focused on growing expectations of a Federal Reserve rate cut in September and political uncertainty around upcoming central bank appointments.

The dollar index edged up to 98.26 in early Asian trading, after falling 0.6% in the prior session. Against the yen, the dollar was steady at 147.36, while the euro was little changed at $1.1654, having risen sharply the day before. Sterling also held firm at $1.3351.

The CME FedWatch Tool now shows a 94% probability of a 25 basis point rate cut in September, up from 48% a week earlier. This follows last week’s weaker-than-expected nonfarm payrolls and downward revisions to prior months. Initial jobless claims for the week ended 2 August are forecast to rise slightly to 221,000.

Gold slipped 0.2% to $3,373 per ounce on Wednesday, easing from a near two-week high reached earlier in the week as traders booked profits ahead of upcoming Fed announcements. Silver edged up to $37.88, while platinum rose to $1,332 and palladium dropped to $1,143, hitting its lowest level since 10 July.

Oil prices rebounded from 8-week lows in early trading on Thursday, with Brent crude up to $67.51 and WTI climbing to $65.03. The gains came after US crude inventories dropped by 3 million barrels last week, well above analyst expectations. US crude exports and refinery runs increased, with Gulf Coast utilisation hitting the highest level since 2023.

Economic Calendar

• BOE rate decision
• US initial jobless claims

Fed’s Bostic speech