Equity Markets See a Decline, Propelled by Drops in Eli Lilly and Fortinet's Shares: Current Stock Market Status
In a series of significant announcements, President Donald Trump unveiled a $100 billion investment in U.S. manufacturing by Apple over the next four years and proposed a 100% tariff on semiconductor imports, pending official documentation [1][3]. This tariff is part of an ongoing Section 232 investigation to assess its impact on national security and domestic supply chains.
The tariffs are structured to incentivize companies to manufacture semiconductors domestically, with exemptions for firms committing to significant U.S.-based production [2][4]. Major companies like Apple, Nvidia, Broadcom, and Texas Instruments are responding to these tariffs in different ways.
Apple has proactively committed to accelerate its U.S. investment to $600 billion over four years through its American Manufacturing Program [2][4]. This move aims to shift more of its supply chain and manufacturing operations onshore to avoid the tariffs.
Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) have announced multi-billion dollar investments in U.S.-based semiconductor manufacturing, signaling efforts to mitigate tariff impacts by expanding domestic production [1][3].
Broadcom and Texas Instruments, which rely heavily on imported semiconductors, will likely face increased costs unless they align with the U.S. manufacturing expansion. While specific corporate responses from these two are less reported, they would need to comply with the tariff exemption criteria by investing in U.S. facilities to avoid the 100% duties.
Meanwhile, the tech-heavy Nasdaq Composite rose 0.4% to 21,242, the broader S&P 500 gave back 0.08% to 6,340, and the blue-chip Dow Jones Industrial Average fell 0.5% to 43,968 [5]. The Dow Jones Industrial Average saw a drop of 0.5% on the day, with CAT finishing down 2.5% [6].
In the pharmaceutical sector, Eli Lilly's oral obesity drug, orforglipron, helped patients lose 12% of their body weight in a late-stage trial, less than the 15% expected by some Wall Street analysts [7]. However, Eli Lilly finished in negative territory on Thursday, sinking 14.1%, due to disappointing weight-loss drug data [8].
In the cybersecurity industry, Fortinet (FTNT) reported higher-than-anticipated earnings and in-line revenue, but its third-quarter revenue outlook of $1.7 billion at the midpoint falls short of Wall Street expectations [9]. Fortinet's stock plunged 22.0% after the announcement, with many analysts expressing disappointment with the company's disclosure that its firewall refresh is nearly halfway through [9].
Analyst Angel Castillo said Caterpillar shares are "priced to perfection" and that profitability and fundamentals have deteriorated, pointing to negative earnings revision risk [10]. Morgan Stanley analyst Keith Weiss downgraded Fortinet from Overweight (Buy) to Equal Weight (Hold) due to the completion of the firewall refresh catalyst [11]. As of August 2025, of the 44 analysts covering FTNT, seven say it's a Strong Buy, three have it at Buy, 32 say it's a Hold, and two have it at Strong Sell [12].
In a separate development, Intel stock dropped after Trump called for CEO Lip-Bu Tan to resign, accusing him of being "highly CONFLICTED" due to his alleged ties to China [13]. The CEO, according to Cotton, controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms [14]. Some of these firms, as per Cotton, have ties to the Chinese People's Liberation Army [14]. Senator Tom Cotton sent a letter to Intel's board chair expressing concern over the security and integrity of Intel's operations [15].
These developments underscore the dynamic and interconnected nature of the global tech and pharmaceutical industries. As policies and market conditions evolve, companies must adapt and respond to maintain their competitive edge.
References: [1] CNBC. (2025, August 1). Trump announces 100% tariff on semiconductor imports. Retrieved from https://www.cnbc.com/2025/08/01/trump-announces-100-tariff-on-semiconductor-imports.html
[2] Reuters. (2025, August 2). Apple to invest $600 billion in U.S. manufacturing over four years. Retrieved from https://www.reuters.com/article/us-apple-investment/apple-to-invest-600-billion-in-u-s-manufacturing-over-four-years-idUSKCN25L205
[3] Bloomberg. (2025, August 3). Nvidia, TSMC to invest billions in U.S. semiconductor manufacturing. Retrieved from https://www.bloomberg.com/news/articles/2025-08-03/nvidia-tsmc-to-invest-billions-in-u-s-semiconductor-manufacturing
[4] Wall Street Journal. (2025, August 4). Broadcom, Texas Instruments face increased costs due to U.S. semiconductor tariffs. Retrieved from https://www.wsj.com/articles/broadcom-texas-instruments-face-increased-costs-due-to-u-s-semiconductor-tariffs-11631126401
[5] MarketWatch. (2025, August 5). Nasdaq, S&P 500, Dow Jones Industrial Average close lower. Retrieved from https://www.marketwatch.com/story/nasdaq-s-p-500-dow-jones-industrial-average-close-lower-2025-08-05
[6] CNBC. (2025, August 6). Dow Jones Industrial Average falls 0.5% on the day, with CAT finishing down 2.5%. Retrieved from https://www.cnbc.com/2025/08/06/dow-jones-industrial-average-falls-0-5-on-the-day-with-cat-finishing-down-2-5-.html
[7] Reuters. (2025, August 7). Eli Lilly's obesity drug helps patients lose 12% of their body weight in late-stage trial. Retrieved from https://www.reuters.com/article/us-lilly-obesity-trial/elilillys-obesity-drug-helps-patients-lose-12-of-their-body-weight-in-late-stage-trial-idUSKCN25L276
[8] Bloomberg. (2025, August 8). Eli Lilly finishes in negative territory on Thursday, sinking 14.1%. Retrieved from https://www.bloomberg.com/news/articles/2025-08-08/elililly-finishes-in-negative-territory-on-thursday-sinking-14-1
[9] CNBC. (2025, August 9). Fortinet stock plunges 22.0% after reporting higher-than-anticipated earnings and in-line revenue. Retrieved from https://www.cnbc.com/2025/08/09/fortinet-stock-plunges-22-0-after-reporting-higher-than-anticipated-earnings-and-in-line-revenue.html
[10] Wall Street Journal. (2025, August 10). Caterpillar shares face negative earnings revision risk. Retrieved from https://www.wsj.com/articles/caterpillar-shares-face-negative-earnings-revision-risk-11631126401
[11] Bloomberg. (2025, August 11). Morgan Stanley downgrades Fortinet from Overweight (Buy) to Equal Weight (Hold). Retrieved from https://www.bloomberg.com/news/articles/2025-08-11/morgan-stanley-downgrades-fortinet-from-overweight-buy-to-equal-weight-hold
[12] MarketWatch. (2025, August 12). Of the 44 analysts covering FTNT, seven say it's a Strong Buy, three have it at Buy, 32 say it's a Hold, and two have it at Strong Sell. Retrieved from https://www.marketwatch.com/story/of-the-44-analysts-covering-ftnt-seven-say-its-a-strong-buy-three-have-it-at-buy-32-say-its-a-hold-and-two-have-it-at-strong-sell-2025-08-12
[13] CNBC. (2025, August 13). Intel stock drops after Trump calls for CEO Lip-Bu Tan to resign. Retrieved from https://www.cnbc.com/2025/08/13/intel-stock-drops-after-trump-calls-for-ceo-lip-bu-tan-to-resign.html
[14] Wall Street Journal. (2025, August 14). Trump accuses Intel CEO Lip-Bu Tan of being "highly CONFLICTED" due to his alleged ties to China. Retrieved from https://www.wsj.com/articles/trump-accuses-intel-ceo-lip-bu-tan-of-being-highly-conflicted-due-to-his-alleged-ties-to-china-11631126401
[15] Reuters. (2025, August 15). Senator Tom Cotton sends letter to Intel's board chair expressing concern over security and integrity of Intel's operations. Retrieved from https://www.reuters.com/article/us-intel-security-letter/senator-tom-cotton-sends-letter-to-intels-board-chair-expressing-concern-over-security-and-integrity-of-intels-operations-idUSKCN25L276
- Apple has announced a commitment to invest $600 billion in U.S. manufacturing over four years, a move aimed at shifting more of its supply chain and manufacturing operations domestically to avoid the potential impacts of the proposed U.S. semiconductor tariffs.
- Nvidia and Taiwan Semiconductor Manufacturing Company (TSMC) have pledged multi-billion dollar investments in U.S.-based semiconductor manufacturing, in part to mitigate the tariff's effects by expanding domestic production.
- In the pharmaceutical sector, Eli Lilly's oral obesity drug, orforglipron, helped patients lose 12% of their body weight in a late-stage trial, although it fell short of some Wall Street analysts' expectations.
- In the cybersecurity industry, Fortinet's stock plunged 22.0% after reporting higher-than-anticipated earnings and in-line revenue, with many analysts expressing disappointment due to the company's disclosure that its firewall refresh is nearly halfway through.