President Trump announced that the US and China are close to extending their trade deal, with a possible meeting with President Xi Jinping. Tariffs on pharmaceuticals and chips may be announced next week, potentially rising to 250%. US companies are monitoring for risks to profitability and supply chains.

In July, US growth nearly stalled, with the employment index in contraction for the second month. Delinquent consumer loans hit a five-year high, while the trade deficit narrowed. Markets await Trump’s announcement of new Federal Reserve board members.

US equities trade cautiously post-corporate earnings reports. Companies like warned of $1.5 billion in tariff costs, with revenue falling short for , causing a 6.6% drop.

Bargain hunting persists as OpenAI plans a $500 billion stock sale. Wall Street futures recovered slightly.

China’s Development Bank plans a policy bond issuance for industrialization. Chinese companies develop AI models. Reports suggest Russia may offer concessions to the US, impacting crude oil prices. Trump warns of tariffs on India and others buying Russian energy.

Japanese yen underperforms among G-10 currencies. Bond yields rise for short- and medium-term maturities. Germany’s factory orders disappoint. Mixed economic data and trade negotiations present risks and opportunities for investors.

Read more at Investing.com: Tariff Fears Grow as Trump Targets Medicines and Chips With Potential 250% Duties