Catching the buzz as Wall Street eyes a tariff storm

2 minutes read

05 August 2025

Catching the buzz as Wall Street eyes a tariff storm

The week kicked off with bets on a Federal Reserve rate cut, but today’s headlines revealed a market hungry for more than just monetary policy whispers.

Momentum from Monday’s rebound carried futures a touch higher—a sign that traders were willing to keep optimism alive, even as Friday’s economic tremors lingered. The Dow, S&P 500, and Nasdaq each edged up about 0.2% in early moves. But beneath the calm, individual stocks lit up the screens.

Palantir rockets, Vertex falls short

Palantir grabbed the spotlight. The defence-tech favourite stunned investors with news: for the first time, quarterly revenue crossed $1 billion. Shares reacted instantly, jumping over 4% in after-hours trading. This wasn’t mere hype—Palantir’s adjusted earnings per share rang in at 16 cents, beating estimates by 2 cents, with revenue breezing past analyst targets. “Palantir’s ability to convert renewed interest in defence and AI into real sales shouldn’t be underestimated,” said Cameron Dawson, Head of Investments at NewEdge Wealth. “You can’t fight the momentum the stock is showing right now.”

In contrast, Vertex Pharmaceuticals proved that good numbers alone don’t always translate to happy shareholders. The biotech giant posted far better-than-expected quarterly results—$4.92 earnings per share and $2.96 billion in revenue. Yet the stock tumbled 14%, as cautious guidance and pipeline doubts left the market unconvinced. The message? Even with strong financials, the bar for future growth expectations remains sky-high.

Trade war talk and sector shifts

Meanwhile, President Trump’s renewed tariff threats kept Wall Street on edge. After his promise to raise duties on Indian imports, citing ongoing purchases of Russian oil, traders once again pencilled in global trade risks. Berkshire Hathaway openly warned shareholders that these moves might “hurt both its business and US-India trade,” according to a company statement. The Russell 2000, which tracks smaller companies tied closely to the domestic economy, gained over 2%, but the broader sector mood was mixed.

On the commodities front, oil prices steadied, finally halting last week’s slide even as new OPEC+ output increases loomed. Gold, the classic safe haven, edged upwards for a fourth straight day, reflecting ongoing uncertainty and growing hopes for a central bank rate cut in September. Line graph showing the trend of gold prices over the last seven days, rising from $1825k to $1840k.

What’s next? As sector earnings roll in, all eyes turn to upcoming releases from Pfizer, Yum! Brands, Fox, Snap, AMD, and Rivian, each one holding clues to whether this week’s rally can last.

Think of it as a summer cricket match: the market bats bravely, undeterred by clouds on the horizon. Investors are eager for runs, but the bowlers, tariffs, earnings misses, and Fed expectations—are ready to test the line-up at every turn. And with volatility still lurking, expect the pace of play to remain brisk.

As Dawson put it, “It wouldn’t be a surprise to see some chop as we move through August, but for now, you have to stay with the momentum.”

Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.