On August 7,2025 global and U.S. stock markets rallied even as sweeping new U.S. tariffs—ranging from 10% to 50% and targeting dozens of trading partners—officially took effect. Investor optimism stemmed from several key developments:
- Apple’s expanded domestic investment played a central role, boosting sentiment.
- The Federal Reserve signaled dovish policy, raising expectations of interest rate cuts.
- Corporate earnings generally beat expectations, further fueling confidence.
- International markets also climbed, aided by strong July trade data out of China.
- Notably, Taiwan and South Korea received exemptions from the harsh 100% chip import tariffs, benefiting companies like TSMC, Samsung, and SK Hynix.
In short, despite aggressive tariff introductions, a mix of dovish monetary policy signals, strong earnings, and strategic exemptions—especially for chipmakers—helped power a surprising global market rally.
