“Market fluctuations are your friend, not enemy” ― Warren Buffett

1. Trump Threatens New Tariffs on EU Over Tech Fines — the EU this week announced it would fine Alphabet’s Google $1 billion for breaching digital competition rules—the latest in a series of penalties for American tech firms in recent years. In response, President Trump said on Friday that he would direct his government to open a tariff investigation that could result in new levies on the EU.The investigation will be run by the U.S. Trade Representative’s office under Section 301 of the Trade Act of 1974, which allows the president to impose tariffs on countries that discriminate against U.S. companies. Trump used the same provision to put tariffs ranging from 10% to 12.5% on U.S. trading partners this week over forced-labor concerns—replacing temporary tariffs put in place after the Supreme Court invalidated many of his tariffs in February. A lawsuit was filed Friday by two small businesses challenging the new forced-labor tariffs.
2. Korean Stocks Plunge 16% in Two-Day Burst of Retail Selling — Despair and frustration spread across the South Korean retail-investing community as stocks cratered again Wednesday, extending the decline in the nation’s key equity index this month to a record 33%. The Kospi Index slid as much as 13% in a hectic morning session, triggering a circuit breaker for a second straight day, as disappointing earnings from SK Hynix Inc. worsened already‑jittery sentiment around the artificial intelligence buildout. Even though the gauge later trimmed declines, it still closed down 6%, resulting in a drop of 16% in just two days.
3. Fed Holds Rates, Three Officials Dissent Favoring a Hike — The Federal Open Market Committee voted 9-3 to hold the benchmark federal funds rate in a range of 3.5% to 3.75%. Dallas Fed President Lorie Logan, Cleveland’s Beth Hammack and Minneapolis Fed chief Neel Kashkari dissented in favor of raising rates by a quarter percentage point. The vote marked the fifth straight time officials have opted to leave rates unchanged. But the dissents suggest it could become more challenging for Warsh, who took the helm in May, to continue holding if inflation fears grow.
4. U.S. Economic Growth Slowed to 1.5% in Second Quarter — Inflation-adjusted gross domestic product increased an annualized 1.5% in the three months through June, according to an advance estimate issued Thursday by the Bureau of Economic Analysis. That marked a deceleration from the start of the year in part due to a surge in imports.
Consumer spending, which comprises about two-thirds of economic activity, rose at a stronger-than-expected 3.2% rate. Business investment continued to boom amid a rush to invest in artificial intelligence. Separate data out Thursday showed inflation-adjusted consumer spending climbed a robust 0.4% in June, matching the strongest since July 2025. The Federal Reserve’s preferred measure of inflation — the personal consumption expenditures price index — fell 0.1% last month. Excluding food and energy, the gauge rose less than forecast.

The week ahead — Economic data from Econoday.com:

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