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August 21, 2025

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In Stocks

Cracks appearing?

4 Mins Read

By mid-August, both the S&P 500 and NASDAQ had hit a succession of fresh all-time highs as investors sloughed off concerns over the Trump administration’s tariffs.

US tech continued to lead the pack with the top ten stocks in the S&P accounting for 40% of the index as measured by market capitalisation.

Since the tariff turmoil in April, equities have been on a tear, easily surpassing their old all-time highs, and steadily grinding higher without a single significant pullback along the way.

Investors could see that the Trump administration was prepared to strike deals which significantly reduced the original reciprocal tariff rates from those threatened on 2nd April.

President Trump was also prepared to push back deadlines, taking the pressure off trade concerns.

But as August pushed into its third week, some cracks appeared.

Traders’ favourites, such as Nvidia and Palantir, dropped sharply, and this sudden burst of negativity spread across the ‘Magnificent Seven’ with the likes of Meta Platforms, Amazon and Alphabet also experiencing significant drawdowns.

Is this simply a case of the summertime blues leading to yet another ‘buy the dip’ opportunity, or is something more sinister afoot? Difficult to tell.

The second quarter earnings season went well, although there are plenty of investors who remain worried about excessively high valuations.

But that’s not to say equities can’t go higher.

Yet it’s apparent that, despite hopes that a peace settlement between Russia and Ukraine may be closer than ever (although that’s not saying very much) and that tariffs haven’t led to the end of the world, there may be some grit in the stock market’s gears.

One event to be aware of is that Nvidia, the most valuable company in history, is set to release its latest results on 27th August.

Nvidia has repeatedly surprised the market by beating expectations in terms of sales, earnings and forward guidance for over two years now. At some stage it won’t.

And when it disappoints, there’s likely to be a sharp negative market reaction across all companies which have invested heavily in AI.

Could this be the quarter when it underperforms? Well, anything is possible. In the meantime, investors are having to factor in a new concern, and that is the Trump administration’s interventions into the corporate world.

Having carved out a deal with Nvidia and AMD concerning their chip sales to China, the Trump administration announced that it was looking to take a significant stake in troubled US chipmaker, Intel.

This is not a good sign, and won’t play well with US investors who like their governments to keep their noses out of businesses, unless they’re cutting taxes and regulations.

But before then, Federal Reserve Chair Jerome Powell will speak during the Jackson Hole Economic Symposium, which runs from 21-23 August.

It sounds as if markets are expecting him to clarify the Fed’s plans for cutting interest rates this year and next.

If so, they’re likely to be disappointed. Mr Powell has repeatedly faced down President Trump, who has personally attacked the Fed Chair for not cutting rates.

But the probability of a 25 basis point rate cut in September currently stands at around 87% according to the CME’s FedWatch Tool, down from 94% following hotter-than-expected wholesale inflation data.

It seems likely that Jerome Powell won’t want to paint himself into a corner on rate cuts, especially as there will be significant inflation and labour market data releases before the FOMC meeting concludes on 17th September.

But should Mr Powell come over as too hawkish, then that could further weigh on US equities.

(David Morrison is a Senior Market Analyst at Trade Nation. Views are his own.)

The post Cracks appearing? appeared first on Invezz

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In World news

New Rare Earths Venture to Target High-grade Assets in US and Brazil

3 Mins Read

Privately owned Rare Earths Americas (REA) has formed in a bid to explore and develop high-grade rare earths assets in the US and Brazil, looking to consolidate supply chains for various domestic sectors.

The company, which raised AU$25 million in a private funding round, said it combines experienced operators and investors with “deep expertise across global mining, energy and critical materials.”

Included in the company’s portfolio is the Foothills discovery, located in Georgia, US.

The site contains grades of up to 41.3 percent total rare earth oxides, including heavy rare earths crucial for high-performance magnets. REA has highlighted its strong logistics, low-cost power and streamlined path to permitting.

In Brazil, the Alpha and Constellation projects hold more than 1 billion metric tons of high-grade ionic clay rare earths mineralization, including dysprosium and terbium, which are essential for permanent magnets.

The Homer project, also located in Brazil, targets multiple carbonatite clusters with the potential for niobium discoveries in a region known for leading niobium mines.

“The rare earths market is undergoing a generational shift as the West races to secure its rare earths future,” said CEO Donald Swartz in a Monday (August 18) press release.

REA’s timing aligns with broader US efforts to reduce reliance on China, which currently controls nearly 70 percent of global rare earths processing and accounts for most heavy rare earths production.

In April, Beijing restricted shipments of seven rare earths to the US and other countries, prompting concern among automakers and defense contractors dependent on these materials.

The US government recently proposed a pricing support mechanism for domestic rare earths ventures in order to increase production and mitigate China’s influence.

Discussions last month, led by former White House Trade Advisor Peter Navarro and National Security Council official David Copley, included rare earths producers and major tech firms reliant on these critical minerals.

China’s dominance stems from billions of dollars invested in mining and processing since 2000, often with minimal environmental or safety oversight, allowing the country to produce rare earths at lower cost than western competitors.

The US response to the Asian nation’s rare earths stranglehold has included efforts to develop domestic mine supply and build out refinement, processing and production capacity. American companies have also sought to secure alternative sources in Africa and Latin America, but investment and technology barriers remain significant.

Mountain Pass in California, the country’s only large-scale rare earths mine, produces bastnaesite carbonate, but relies heavily on foreign processing. MP Materials (NYSE:MP), the mine’s operator, posted a net loss of US$65.4 million in 2024, highlighting the challenge of competing with China’s low-cost production model.

REA’s launch positions it as a potential strategic player in this evolving landscape.

According to the company, the Foothills project offers a “streamlined permitting pathway” in the US, while the Alpha and Constellation projects in Brazil provide access to large-scale, high-grade heavy rare earths.

“With grade and strategic geography on our side, we intend to advance our rare earths projects to support the long-term supply of critical materials essential to domestic innovation,” Swartz added.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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In Business

Best Buy launches third-party marketplace as it looks for sales drivers

4 Mins Read

Best Buy is launching a third-party marketplace, as it tries to bulk up the variety of merchandise it offers and reverse slower sales.

Starting on Tuesday, shoppers who go to Best Buy’s website and app will see products and brands that weren’t available there before, including more tech-related accessories like custom video game controllers and some nontech items including seasonal decor and sports collectibles.

The company’s online marketplace riffs off those of other retailers, such as Amazon and Walmart, by relying on third-party sellers to stock, sell and ship inventory and taking a cut of their sales in the form of a commission.

“Everything we do is really centered around the customer and their technology needs, and we do see customers actually doing a lot of consumer electronics transactions through marketplaces,” Chief Customer, Product and Fulfillment Officer Jason Bonfig said. “And as a result of that, we need to make adjustments to be where the customer’s at.”

He said Best Buy noticed gaps in its assortment that the new platform will help it fill. For instance, Bonfig said the company didn’t carry batteries for some older cameras or cases for older smartphones. And it didn’t offer some items that complement Best Buy purchases, such as furniture that goes around a big-screen TV or cookware to use with a new kitchen appliance.

Along with adding those items, the marketplace makes it possible for smaller vendors with innovative products to sell on Best Buy’s website when they’re not yet big enough to make or distribute the volume needed for its stores, he added.

Best Buy’s marketplace launches at a time when its business could use a boost. Its annual sales have declined over the past three years as the company contends with a sluggish housing market, selective consumer spending and a decline in device replacements after a spike in tech purchases during the Covid pandemic.

The company cut its sales outlook in May and said it expects full-year revenue to range from $41.1 billion to $41.9 billion. That would be similar to Best Buy’s annual revenue of $41.5 billion in the most recent fiscal year, but below the numbers it posted in the years leading up to and during the pandemic.

Best Buy will share its most recent earnings results and sales forecast on Aug. 28.

Tariffs have complicated the backdrop for Best Buy, too, since the higher duties have added costs for consumer electronics vendors and distracted them from other priorities like research and development that leads to new and innovative products, said Jonathan Matuszewski, a retail analyst at Jefferies. He said Best Buy tends to win sales instead of big-box or online competitors when there’s a leap forward in technology.

With the platform’s launch, Best Buy joins other retailers that have jumped on the trend of introducing or expanding third-party marketplaces. Lowe’s and Nordstrom started marketplaces last year. Ulta Beauty plans to launch its own later this year. And Target said it will expand its existing marketplace, Target Plus.

On Best Buy’s earnings call in May, CEO Corie Barry described the third-party marketplace as one of the company’s strategic priorities for the year. She said that new profit stream “is even more important in this environment” and will provide greater flexibility with the range of items and price points.

Plus, she said the marketplace supports the company’s growing advertising business. Sellers can buy ads for their products, including by paying for better placement in search results.

Marketplaces and the advertising opportunities that come with them tend drive higher profits for retailers, said Justin MacFarlane, a managing director for the global retail group of AlixPartners. Sellers buy, stock and ship products instead of the retailer, and take on both the expense of buying inventory and the risk that they may have to mark down unwanted items, he said.

Yet the business model comes with risks, too, he said. For instance, sellers may not have the same standards as a retailer and it could anger a retailer’s customers if they send products in torn boxes, with missing pieces or days later than expected. And he said retailers can flood their websites with so many different categories, brands and products that they overwhelm customers with choices that seem irrelevant to their company’s identity.

“You get addicted to the growth and more is more until it’s not,” he said.

At launch, Best Buy’s marketplace will have about 500 sellers, Bonfig said. He said the company vetted applicants and whittled them down to the ones who can provide a high-quality customer experience. The sellers must match Best Buy’s return policy, he added.

Customers can return purchases either directly to the seller or to Best Buy stores, he said.

This post appeared first on NBC NEWS

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In Politics

Russian drone crashes in Polish field; Warsaw protests airspace violation and plans formal complaint

2 Mins Read

A Russian drone may have crashed in a field in Poland, a move the country’s deputy prime minister called a ‘provocation’ as the United States and European leaders continue to push Moscow to end its war in Ukraine. 

The drone hit a cornfield in the village of Osiny in the eastern Lublin province, about 62 miles from Poland’s border with Ukraine, Reuters reported. 

Deputy Prime Minister Wladyslaw Kosiniak-Kamysz, who also serves as defense minister, said Wednesday’s incident was similar to cases in which Russian drones flew into Lithuania and Romania and could be linked to efforts to end the war in Ukraine, according to the outlet. 

‘Once again, we are dealing with a provocation by the Russian Federation, with a Russian drone. We are dealing with it in a crucial moment, when discussions about peace (in Ukraine) are underway,’ Kosiniak-Kamysz told journalists.

Foreign Ministry spokesperson Pawel Wronski told Reuters some experts have suggested a Russian version of the Shahed drone developed by Iran was involved in the latest incident.

Polish Gen. Dariusz Malinowski said the drone had a Chinese engine and appeared to be a decoy that was designed to self-destruct.

The blast shattered windows in several homes, but nobody was injured, the Polish PAP news agency reported.

Police recovered burnt metal and plastic debris at the site.

‘I was sitting in my room at night, around midnight, maybe, and I heard something just bang,’ local resident Pawel Sudowski told local news website Lukow.tv. ‘It exploded so loudly that the whole house simply shook.’

On X, Polish Foreign Minister Radoslaw Sikorski said his ministry would issue a protest against the airspace violation without naming the perpetrator. 

‘Another violation of our airspace from the East confirms that Poland’s most important mission towards NATO is the defence (sic) of our own territory,’ he wrote. 

The incident came as the Trump administration continues to broker talks between Russia and Ukraine to end the bloody three-year conflict. On Monday, Trump hosted Ukrainian President Volodymyr Zelenskyy and a group of European leaders at the White House.

On Friday, he met with Russian President Vladimir Putin in Alaska. 

This post appeared first on FOX NEWS

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