CNBC

Lead Story

Trade talks between the U.S. and Canada collapsed late Friday, triggering 50% tariffs on approximately $20 billion worth of Canadian imports starting Saturday morning, with Canadian Prime Minister Mark Carney suspending negotiations and vowing a dollar-for-dollar retaliation.

Markets & Economics

Rising Treasury yields and persistent inflation concerns dragged the major averages lower, with the S&P 500 falling 1.43%, the Nasdaq Composite losing 2.05%, and the Dow Jones Industrial Average slipping 0.85% to snap their three-week winning streaks. In an effort to preserve the stock market rally, the U.S. Treasury Department announced it would more than double the size of its buybacks of longer-dated government debt, though yields rebounded as Brent crude oil climbed over 5% on the week to close at $94.39 per barrel. Meanwhile, geopolitical premiums remained elevated as U.S. Treasury Secretary Scott Bessent warned of the “greatest coordinated economic isolation in history” against Iran, ahead of a highly anticipated economic measures briefing on Monday. Despite these macro headwinds, market implied volatility drifted toward one-year lows, prompting Global X ETFs strategist Billy Leung to caution that equity investors are significantly under-hedged against structural risks like AI capital expenditure sustainability.

Business & Earnings

Nvidia plans to hike prices by more than 15% on server systems containing its Blackwell and Vera Rubin AI chips shipped early next year, as the chipmaker grapples with the soaring costs of critical memory chips. To help restaurant partners defend their profit margins, Coca-Cola is testing automated equipment in its secretive innovation labs to serve trend-driven “dirty sodas” and refreshers, aiming to capitalize on high-margin Gen Z beverage consumption habits. This innovation drive comes as McDonald’s expands its McCafe specialty beverage menu, although McDonald’s new partnership with Red Bull has sparked industry speculation about the state of its 70-year relationship with Coke. Additionally, representatives for Paramount Skydance and the California Attorney General’s office are scheduled to meet Monday to negotiate a potential settlement of the antitrust lawsuit aimed at blocking Paramount’s $110 billion takeover of Warner Bros. Discovery. Investors are also tracking global expansion stories, such as how ride-hailing firm Careem went from a $100,000 bet to a $3.1 billion Uber acquisition.

Investing & Commentary

With the S&P 500’s technology and communications sectors now commanding nearly 50% of the index’s total value, asset managers are advising investors to diversify into undervalued international equities, value-oriented dividend ETFs like SCHD, and physical gold to mitigate extreme concentration risks. For stock pickers, Jim Cramer recommends using recent retail earnings weakness to accumulate positions in TJX Companies, noting that Home Depot delivered its best quarter in five years with same-store sales rising 1.7% despite a “frozen” housing market. Meanwhile, Warren Buffett continues to steer Berkshire Hathaway’s equity portfolio, with a massive Q2 purchase of Alphabet shares valued at $37.77 billion, placing it in a razor-thin battle with Coca-Cola for the portfolio’s third-largest position. Additionally, crypto investors are closely watching the evolution of digital cash to determine whether stablecoins represent the future of money or are simply another passing fad.

Also Worth Watching

• Meta’s defining court test on future of social media (CNBC): Meta’s advertising business faces its biggest legal test yet as 29 state attorneys general take the tech giant to trial over addictive app features targeting minors.
• Alterra’s $250 billion climate target is within reach (CNBC): Altérra CEO Majid Al Suwaidi is highly confident the UAE-backed fund will reach its massive 2030 climate mobilization goal.
• I run a pizzeria out of my Smart car in NYC (CNBC): Chef Bradley Alvelo shares how he built a mobile pizza business operating out of New York City’s smallest pizzeria.
• Hidden bar in gas station brings in $5 million a year (CNBC): A look at a unique gas station speakeasy that has successfully scaled into a multi-million-dollar business.
• I buy abandoned storage units as a side hustle (CNBC): An inside look at how an abandoned storage unit side hustle can bring in $135,000 annually.

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