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Aug 2025
42m 50s

Stocks Fall as US Services Flash Warning...

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About this episode

Watch Bloomberg Businessweek Daily LIVE every day on YouTube: http://bit.ly/3vTiACF.

Stocks wiped out gains after data showed weakening US services amid sticky price pressures, raising concern about the Federal Reserve’s policy challenges. Short-dated Treasuries underperformed. Oil sank as Russia was said to mull an air-truce with Ukraine.

Following a rally that put S&P 500 on the brink of all-time highs, the benchmark lost steam. A gauge of chipmakers slid over 1% ahead of Advanced Micro Devices Inc.’s results. Two Chinese nationals were arrested this week on charges they sent tens of millions of dollars worth of advanced AI chips made by Nvidia Corp. to China in violation of US export restrictions, according to authorities.
A soft $58 billion sale of three-year notes kicked off a trio of US auctions this week. The yield on 10-year Treasuries was little changed at 4.20%, while those on two-year notes rose four basis points to 3.72%.

The US services sector stagnated as firms — faced with tepid demand and rising costs — reduced headcount. Data out last week showed weaker-than-expected jobs data while inflation-adjusted consumer spending barely rose.

President Donald Trump told CNBC that Treasury Secretary Scott Bessent said he did not want to be nominated to replace Jerome Powell as the next Fed chair. Trump also said that US tariffs on semiconductor and pharmaceutical imports would be announced “within the next week or so.”

Today's show features:

  • Joyce Huang, Senior Client Portfolio Manager for American Century Investments on the fixed income market
  • Bloomberg Senior Editor for Technology & Strategic Industries Michael Shepard on new tariff concerns on pharmaceuticals and semiconductors
  • Rick Smith, Founder and CEO of Axon, on earnings and the market for physical security tools and equipment
  • Bloomberg News Tech and Venture Capital Reporter Kate Clark on her Businessweek story: AI Founders Jump Ship for Big Tech, Leaving Colleagues Stranded

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