Weekly Recap 8 August 2025: Apple’s $100B U.S. Commitment, Trump’s Tariffs, Central Bank Signals & EU Market Moves

As the week nears its end on 8 August 2025, investors absorbed a flurry of developments across global markets. From bold corporate manoeuvres and tariff threats to interest rate speculation and regional stock divergence, the week’s news highlighted growing investor sensitivity to both macroeconomic trends and policy shifts.

TL;DR

• Apple surged nearly 6% after pledging $100 billion to US manufacturing

• President Trump threatened 100 percent tariffs on foreign-made semiconductors

• The Bank of England held interest rates steady as inflation eased

• Spain’s IBEX 35 outperformed EU peers in the first half of 2025

• Fed rate cut hopes strengthened after weak US employment data

Bank of England Holds Steady as Inflation Eases

The Bank of England kept interest rates unchanged during its latest meeting this week, reflecting a cautious but stabilising outlook amid easing inflationary pressures. Policymakers noted a cooling labour market and signs of diminishing wage growth, signalling potential room for rate cuts later this year if conditions allow. This came alongside a heavy economic calendar featuring corporate earnings and jobless claims data in both the UK and US markets. While sterling wavered slightly on the decision, equity markets remained steady. Explore the Bank of England's rate pause and key macro updates.

Fed Rate Cut Hopes Return as Data Weakens Dollar

Investor sentiment turned dovish midweek after weaker-than-expected US jobs data reignited expectations that the Federal Reserve may ease rates soon. The dollar softened, while equities found fresh momentum, especially as Treasury yields declined. The market’s shift towards a more accommodative monetary outlook helped offset trade-related anxieties and provided a tailwind for risk assets. Traders are now closely watching upcoming inflation data and Fed commentary for confirmation. Catch up on how Fed rate cut hopes lifted stocks and pressured the dollar.

IBEX 35 Leads EU Markets in a Strong First Half

Among European indices, Spain's IBEX 35 stood out for its performance in the first half of 2025, outpacing its continental peers thanks to strong showings in banking, tourism and energy. The Spanish benchmark posted double-digit gains, supported by resilient domestic demand and robust corporate earnings. In contrast, broader EU equity benchmarks struggled under the weight of fragmented economic growth and cautious investor sentiment. This divergence has prompted analysts to reevaluate regional positioning heading into the third quarter. Read how Spain’s IBEX 35 beat EU benchmarks in H1 2025.

US Markets Volatile Amid Mixed Data and Employment Focus

Later in the week, the US stock markets experienced choppier action as weaker ISM services data and jobless claims came into focus. Although Wednesday and Thursday saw strong index performances, led again by Apple and other tech names, underlying concerns about economic momentum remained. Weekly jobless claims, which were higher than expected, intensified scrutiny of the US labour market and its implications for Federal Reserve policy decisions. While optimism persists, the data reinforced the fragile balance facing policymakers. See how mixed economic signals stirred volatility in US markets.

Apple’s $100B U.S. Commitment Fuels Market Rally

This week, US equity markets proved notably resilient, climbing higher even after President Donald Trump threatened a 100 percent tariff on foreign semiconductor imports. Apple stole the spotlight with a $100 billion pledge to US manufacturing, a move widely interpreted as a strategic hedge against the new trade threats. The announcement spurred a nearly 6 percent rally in Apple’s stock, lifting the Nasdaq and boosting overall tech sentiment. While concerns linger over reshoring feasibility, investors prioritised strong corporate fundamentals over geopolitical tension. Read how the US Markets Rise as Apple Leads Tech Surge Amid Tariff Threats.

Conclusion

This week underscored how markets can remain bullish even amid heightened geopolitical risks and mixed economic data. President Trump’s tariff threats tested investor nerves, yet Apple’s strategic manufacturing commitment injected fresh confidence into the tech sector. Meanwhile, central banks held firm as signs of slowing inflation and economic softness prompted speculation about upcoming rate cuts. Spain's standout equity performance showed that pockets of strength persist across regions. Heading into next week, markets will stay attuned to macro trends, policy signals and corporate earnings that continue to shape sentiment.

*Past performance does not reflect future results 

FAQs

Why did Apple’s stock rise this week?

Apple surged nearly 6 percent after pledging $100 billion to US manufacturing, which markets interpreted as a smart move to avoid potential tariffs.

What did President Trump announce regarding semiconductors?

Trump threatened 100 percent tariffs on foreign semiconductors, targeting global chip supply chains, but markets shrugged off the news.

Did the Bank of England change interest rates?

No, the BoE held rates steady amid signs of easing inflation and a cooling labour market, signalling flexibility for future moves.

What’s driving Fed rate cut expectations?

Weak US employment and services data led to speculation that the Fed could cut rates sooner than previously expected.

How did European stocks perform?

Spain’s IBEX 35 outperformed its EU peers in the first half of 2025, thanks to gains in tourism, energy and banking, while broader European indices lagged.