Intel Crushes Earnings, Oracle Locks In $7 Billion Pentagon Contract

**Zaid Admani** (0:00)
Public.com presents The Rundown, your daily market update in 10 minutes. My name is Zaid Admani, and today is Friday, July 24th. In today's episode, I'll tell you about the new tariffs that kicked in overnight, and why the market isn't too worried about them. Also recap Intel's blowout earnings, and why the company is finally benefiting from the AI boom. Then stick around to the end of the show to find out how much Google has made from their SpaceX investment, and why I think they need to change the accounting rules when it comes to earnings. We got a great show for you today.
Let's go.
Stocks got hit hard on Thursday, with the S&P 500 dropping 1.2%, while the NASDAQ fell more than 2.1%. It was the NASDAQ's worst day in about a month, and most of the damage was concentrated at the very top of the market. NASDAQ 7 stocks yesterday lost a combined $889 billion in market value, with Google and Tesla getting hit the hardest. Google stock dropped more than 7%, and Tesla fell more than 14% following their earnings report. We broke down both those earnings on yesterday's show, so go check that out if you missed it. The big takeaway so far seems to be that investors are getting increasingly nervous about just how much money these tech companies are spending on AI. But you know, tech wasn't the only thing dragging down the markets yesterday. Oil and tariffs are top of mind again for investors. Let's talk about oil first. Brent crude closed above $100 a barrel yesterday for the first time since May. Oil prices have surged nearly 20% in just the past five days. It's the fastest spike since March. See, what's happening right now is that the oil disruption in the Middle East is spreading beyond just the Strait of Hormuz. The Iranian-backed Houthi rebels said they attacked two Saudi oil tankers in the Red Sea. Saudi Arabia has been rerouting a huge portion of their oil exports through the Red Sea to avoid the blockade at Hormuz, and now that backup route is under threat too. So that's making oil investors nervous. On top of that, President Trump says he's considering what he called a massive attack on Iran, potentially bigger than anything we've seen so far in this war. This conflict is continuing to get worse, and investors can't ignore it anymore. But that wasn't the only headline dragging down markets. We also got some tariff news. We talked about this earlier in the week, and it is now confirmed that Trump administration is imposing new tariffs ranging from 10% to 12.5% on imports from about 60 countries, including major trading partners like the EU, Canada and Mexico. These tariffs took effect today, and essentially rebuilt a big portion of the tariffs that were struck down by the Supreme Court back in February. This time, the Trump administration is using a different legal authority tied to forced labor practices. And just like with the previous tariffs, I'm sure these tariffs will face legal challenges as well. But I also think the immediate economic impact might be less dramatic than the headlines make it sound. Because remember, after the Supreme Court struck down Trump's previous tariffs, the administration put on a temporary 10% global tariff. Those temporary tariffs expired yesterday. So these new tariffs are replacing those temporary tariffs. So it's not like we have another 10% tariff on top of everything else. So the overall tariff burden on imports doesn't change dramatically right away. But I think the bigger issue here is the timing of these tariffs and the optics as well. Oil prices are rising again, gas is back above $4 at the pump, and inflation is still above the Fed's 2% target. So now with these tariffs back in focus, that could make the markets a bit nervous. And it also puts the Fed in a tough spot on what to do with interest rates. The market seems to be convinced that the Fed will be hiking rates at some point this year. Traders are now pricing at a 40% chance the Fed hikes rates at next week's meeting. In fact, the 10-year treasury yield just hit its highest level since January of last year, and traders are now pricing at a 40% chance the Fed hikes rates at next week's meeting. You know, a week ago, the odds of a rate hike at next week's meeting was 12%. I personally don't think the Fed will hike rates next week, but I'm really curious to see what Fed Chair Kevin Warsh has to say about everything. And by the way, next week is going to be absolutely huge for the market. On top of the Fed meeting, we're also getting earnings from Microsoft, Meta, Apple and Amazon. So there's gonna be a lot to cover over the next few days. We're gonna be staying on top of everything. So if you're new here, it's a great time to get subscribed to the podcast and tune in every day to stay in the loop.