Nasdaq edges to record as Dow, S&P 500 retreat
Traders working on the floor of the New York Stock Exchange, in New York City, on July 15.
NEW YORK - Wall Street stocks finished mostly lower on July 15 despite another Nasdaq record as President Donald Trump announced
a US trade deal with Indonesia ahead of a deadline still facing numerous other countries.
All Indonesian goods entering the United States will encounter a 19 per cent tariff, below the 32 per cent previously threatened, according to a Trump social media post.
But the deal comes as US negotiations remain unresolved with some two dozen other trading partners, with the looming US threat of steep tariffs from Aug 1.
High stock market prices 'may be emboldening the administration to keep up the bluster on tariffs,' said Mr Art Hogan, of B. Riley Wealth Management, who characterised most of the most recent Trump trade headlines as unfavourable.
The Dow Jones Industrial Average dropped 1 per cent to 44,023.29.
The broad-based S&P declined 0.4 per cent to 6,243.76, while the tech-rich Nasdaq Composite Index gained 0.2 per cent to finish at a second straight record at 20,677.80.
The Nasdaq record came as Nvidia announced it would
resume sales of its H20 artificial intelligence chips to China, after Washington pledged to remove licensing curbs that had put a stop to exports.
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Shares of Nvidia rose 4 per cent.
Markets also digested data showing an uptick in inflation. The consumer price index was up 2.7 per cent from a year ago in June, rising from 2.4 per cent in May in a move that likely showed some effect from tariffs.
Analysts described the report as mixed, with inflation rising enough to stay a concern, but not so much as to confirm the worst-case outcomes for tariffs.
Several large banks also reported strong earnings, though shares of Wells Fargo fell 5.3 per cent following a disappointing forecast for net interest income, a closely watched benchmark.
But Citigroup jumped 3.6 per cent after it topped analyst estimates by a wide margin.
Meanwhile MP Materials surged 20 per cent after announcing a US$500 million (S$640 million) long-term agreement to
supply Apple with rare earth magnets.
The disclosure comes after the rare earth company last week announced that the US Pentagon had taken a stake in the company.
Apple advanced 0.2 per cent. AFP
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Straits Times
20 minutes ago
- Straits Times
Prabowo and Trump strike tariff deal – but at what cost to Indonesia?
Indonesian President Prabowo Subianto said his conversation with US President Donald Trump heralded 'a new era of mutual benefit' between both sides. SINGAPORE – The trade deal announced on July 15 lowering US tariffs on Indonesian goods is seen by some as a diplomatic win for President Prabowo Subianto, though others warn that he may have overpromised and burdened Indonesia with costly commitments. US President Donald Trump broke the news on his Truth Social platform, saying that he had struck a trade pact with Indonesia following negotiations with Mr Prabowo to avoid steeper tariffs. 'They are going to pay 19 per cent and we are going to pay nothing... We will have full access into Indonesia, and we have a couple of those deals that are going to be announced,' he later told reporters. No details have been given about the deal, which comes after deals Mr Trump has made with Vietnam and the United Kingdom. The US President had threatened Indonesia with a 32 per cent tariff rate starting Aug 1 in a letter last week. Mr Prabowo on July 16 said his conversation with Mr Trump heralded 'a new era of mutual benefit' between both sides. As part of the deal, Indonesia has committed to purchasing US$15 billion (S$19 billion) in US energy, US$4.5 billion in American agricultural products, and 50 Boeing jets, many of them 777s. The sheer scale of Indonesia's purchase commitments, and the lack of clarity on how they will be financed and integrated with national strategies, has raised eyebrows, with experts warning that the deal could set a precedent for other trade partners to demand similar 'full access' terms. Top stories Swipe. Select. Stay informed. Singapore Over 600 Telegram groups in Singapore selling, advertising vapes removed by HSA Singapore 2 weeks' jail for man caught smuggling over 1,800 vapes and pods into Singapore Singapore Strong argument for cockpit video recording, says Iata chief in wake of Air India crash report Singapore Here comes the sun: Less rain, more warm days in second half of July Singapore ComfortDelGro to introduce new taxi cancellation, waiting fee policy Singapore Baby died after mum took abortion pills and gave birth in toilet; coroner records an open verdict Asia Former deputy minister seen as surprise front runner for Malaysia's next Chief Justice: Sources Business Tycoon Robert Kuok's daughter Kuok Hui Kwong appointed CEO of Shangri-La Asia Associate Professor Yohanes Sulaiman of Jenderal Achmad Yani University in West Java highlighted the plan to buy the Boeing jets, noting that national carrier Garuda Indonesia is still struggling financially and unlikely to be in a position to take on large-scale purchases. In the first quarter of 2025 alone, the state-owned carrier recorded a net loss of US$75.9 million, surpassing its already-large net loss for the entire 2024 fiscal year. When asked about the planes on July 16, President Prabowo said that Indonesia needs to grow the national carrier's presence, and to do so, new aircraft were needed. There are also doubts about the energy component. While Indonesia does import liquefied petroleum gas and other fuels, analysts say a US$15 billion commitment would run counter to the government's ambitions to reduce fossil fuel dependency and boost renewables. The scale of the energy imports is not aligned with Indonesia's energy transition goals, and this could introduce fiscal strain and policy contradictions down the line, noted Dr Siwage Dharma Negara, a senior fellow at the ISEAS-Yusof Ishak Institute. 'The arrangement doesn't necessarily reflect a balanced, win-win outcome,' he said, warning that Indonesia has to keep in mind the longer-term costs. 'It remains unclear whether the economic benefits fully justify the scale of concessions offered by Jakarta.' Indonesia's goods trade with the US reached nearly US$40 billion in 2024, with a roughly US$18 billion surplus, and key exports including electronics, footwear, car tyres, palm oil and frozen shrimp. Indonesia's central bank on July 16 delivered its fourth interest rate cut since September, trimming its benchmark rate by 25 basis points to 5.25 per cent in a bid to support the economy amid weakening global trade and sluggish domestic demand. Sluggish household spending had already weakened growth in the first quarter, while the outlook for subsequent quarters has been clouded by the impact of US tariffs on global trade. Some observers found the direct negotiation between the two leaders notable. This growing personal rapport was most visibly demonstrated in November 2024, when Mr Prabowo posted a video of his congratulatory call to Mr Trump, in which he offered to fly over in person, and referenced his American military training. Bank Permata economist Josua Pardede said Mr Trump singling out Mr Prabowo and calling him 'highly respected' was more than symbolic, chalking it up as a win for the Indonesian leader and his foreign policy approach. 'Such direct acknowledgment from a global leader underscores President Prabowo's capability to manage complex international relations and signals strength and credibility to both domestic and international stakeholders,' he said. The agreement signals that Mr Prabowo is willing to make bold economic moves to safeguard Indonesia's interests, said Dr Siwage. 'Mr Trump's public acknowledgment of a direct deal with Mr Prabowo suggests that Indonesia took an active role in shaping the outcome,' he said, adding that this highlights how both leaders prefer a personal, transactional style of diplomacy. Other experts, however, cautioned that the deal may carry ripple effects across Indonesia's wider network of economic relationships. Mr Muhammad Habib Abiyan Dzakwan from the Centre for Strategic and International Studies (CSIS) warned that the nature of the arrangement, involving significant import concessions, could prompt demands from other economic partners. 'What I am concerned the most is the extent of this unusual arrangement would then affect Indonesia's relations with Asean neighbours and Free Trade Agreement partners. More partners will likely demand the same concession from Indonesia,' he said. In particular, countries like China, the archipelago's largest trading partner and one of its top investors, may view Jakarta's increasingly close economic overtures to the US with suspicion, he added. However, he cautioned that the government must ensure it has sufficient budget and fiscal space not only to meet these obligations, but also to prepare for future uncertainties that may arise. While the figures in the deal appear large, Mr Josua said that the commitments are likely to be staggered over time, and may align with Indonesia's long-term infrastructure and aviation ambitions. But whether they benefit Indonesia in the long run will depend on how they create jobs and drive productivity, and how Indonesia integrates these commitments with domestic policy objectives. 'Careful negotiation and execution will be critical to ensuring that benefits are maximised and commensurate with the substantial financial outlays involved,' he said.
Business Times
20 minutes ago
- Business Times
Trump is flunking his Epstein test
CULT loyalty is blind until it isn't. Donald Trump's populist truth test now seems to be at hand. Whether or not the 'Epstein files' exist is secondary. Trump and his leading henchmen stoked a frenzy about the cover-up of material relating to the late convicted sex abuser's allegedly complicit circle of friends. Now they say that they have nothing to show. 'We will bring justice to the paedophiles!' has been replaced by: 'Move along, nothing to see.' On this occasion, however – and for the first time in a serious way – the Maga cult is not obeying orders. Indeed, it looks even worse than that for Trump. For years he insisted there was a deep-state plot that only he could expose. Many of his leading backers, notably Kash Patel, who now heads the FBI, and the attorney-general, Pam Bondi, presented the Epstein files as a defining example of establishment depravity. Now they say it was fake news. But Trump is messing up their U-turn. Last weekend, he claimed that the Epstein files did exist after all but had been concocted by presidents Barack Obama and Joe Biden – as well as former secretary of state Hillary Clinton and other familiar suspects. Then he pleaded with his base to focus on something else. It is not only Trump's world that is having trouble keeping up. 'One year ago our Country was DEAD, now it's the 'HOTTEST' Country anywhere in the World. Let's keep it that way, and not waste Time and Energy on Jeffrey Epstein, somebody that nobody cares about,' he posted on Truth Social. To be clear, millions of Americans of all leanings care about the Epstein case. You do not need to be a conspiracy theorist to find something fishy about Trump's special pleading. That Trump himself has previously admitted to being a friend of Epstein for 15 years is creeping into Maga consciousness. The president has since claimed he was 'not a fan' and 'had a falling out with him a long time ago'. Blaming Bondi and Patel for this latest alleged cover-up, which some Maga influencers are doing, is a distraction. Patel and Bondi are the blind loyalists in this equation. Claiming that the sovereign is being betrayed by his courtiers is as old as history. 'If only the Tsar/Stalin/Hitler knew what was being done he would fix it,' they cry. But making sacrificial lambs of Bondi or Patel will not bail him out. It could only work if their replacements uncovered new evidence. So how will Trump get out of this? The only previous time he has clashed with his base was over the Covid vaccines. In spite of having presided over 'Operation Warp Speed', which was arguably his greatest first-term feat, he dropped that bragging right when rally-goers started to boo him in 2021. If he could not beat the mob he would join them, even if it meant forgoing credit. Siding with the crowd is not an option Trump seems willing to take with the Epstein files. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up When he first ran for president, Trump claimed his base was so loyal he could shoot someone on New York's Fifth Avenue and they would still vote for him. That may still be true. But sexual abuse plays a central role in Maga's deep-state conspiracy theories. Most of their myths are just that – most notably the Comet Ping Pong pizzeria satanic paedophile ring. What distinguishes the Epstein story is that it derives from a legally proven case. I have no idea whether the FBI has evidence from its Epstein documents that could damage Trump, or other big names. Epstein's social circle included other billionaires, a former US president, a former governor, a former senator, a former bank boss and a member of the British royal family. His world knew no partisan boundaries. What they had in common was affinity to a billionaire donor who threw racy parties. Leading Maga figures and a growing number of Democratic lawmakers are now calling for an inquiry into the alleged Epstein cover-up. Who knows where that unlikely cross-ideological rallying cry could lead? Trump could defuse the problem by agreeing to appoint a special counsel. Dozens of powerful men could come off badly from such a probe. Should Trump stonewall this demand, the suspicion that he is hiding something will grow. At a time when the Maga world is showing signs of broader disaffection – notably on Trump's newfound enthusiasm for arming Ukraine, and making an exception in his deportation drive for illegal immigrants who work in agriculture – the president is taking a gamble that Epstein will go away. It might be a bit late for Trump to acquaint himself with the Chinese proverb: if you ride the tiger, it is hard to get off. FINANCIAL TIMES
Straits Times
an hour ago
- Straits Times
Singapore shares rise to new high; STI up 0.3%
Find out what's new on ST website and app. The STI's top gainer was City Developments, up 6.3 per cent to $5.92. SINGAPORE – Concerns about US inflation failed to deter local investors from pushing the bourse to a new high and its third straight day of gains this week. The optimism left the benchmark Straits Times Index (STI) up 0.3 per cent or 12.43 points to 4,132.25 on July 16 – just shy of its intra-day peak of 4,132.41, with gainers outpacing losers 384 to 178 on trade of 1.5 billion securities worth $1.3 billion. The STI's top gainer was City Developments, up 6.3 per cent to $5.92. The property developer's shares surged after it announced that director Philip Yeo, who had backed executive chairman Kwek Leng Beng in his boardroom battle against his son, would be retiring. The biggest decliner was CapitaLand Integrated Commercial Trust, which fell 1.4 per cent to $2.19. The trust was also the most actively traded counter by volume, with 27.3 million units traded. Regional bourses mostly ended in the red, amid those signs of rising US inflation. Japan's Nikkei 225 was down 0.04 per cent, South Korea's Kospi fell 0.9 per cent, the ASX 200 in Sydney retreated 0.8 per cent for its worst day since May 5 and Hong Kong's Hang Seng dipped 0.3 per cent. The losses largely mirrored Wall Street overnight after reports showing inflation picked up in June, a potential sign that tariffs are having an impact. Top stories Swipe. Select. Stay informed. Singapore Over 600 Telegram groups in Singapore selling, advertising vapes removed by HSA Singapore Strong argument for cockpit video recording, says Iata chief in wake of Air India crash report Singapore Here comes the sun: Less rain, more warm days in second half of July Asia Former deputy minister seen as surprise front runner for Malaysia's next Chief Justice: Sources Singapore Baby died after mum took abortion pills and gave birth in toilet; coroner records an open verdict Business Tycoon Robert Kuok's daughter Kuok Hui Kwong appointed CEO of Shangri-La Asia Singapore Acute psychiatry services to be expanded across all healthcare clusters: MOH Singapore New network links Home Team psychologists, mental health bodies to boost emergency response The S&P 500 edged 0.4 per cent, the Dow fell 1 per cent while the Nasdaq rose 0.18 per cent to a fresh high. Mr Alvin Liew, senior economist at UOB, said that the higher consumer price index figures in the US for June show 'clearer marks of tariff-induced price increases'. However, he expects the Federal Reserve to remain patient in cutting interest rates amid uncertainty over the impact of US tariffs.
