Tariffs Fail to Knock Markets and Meta Strikes $60bn AI Chip Deal with AMD

The week’s headline was the US Supreme Court’s reversal of former President Trump’s “Liberation Day” tariffs, reigniting debate over a temporary 10 percent import duty on a range of goods. While the ruling leaves the duty in limbo, businesses in the UK remain uncertain about the final rate and the 150‑day window granted under Section 122 of the 1974 Trade Act. Despite this policy turbulence, the FTSE 100 nudged to fresh record levels, suggesting investors are betting that trade agreements—particularly the recently‑signed UK‑US deal—will cushion any short‑term shock. The market’s calm reflects a broader belief that tariff volatility will be absorbed without derailing earnings.

Tech investors turned their focus to AI, where Nvidia’s upcoming earnings are expected to outpace forecasts, driven by 67 percent sales growth and bullish forward guidance. At the same time, AMD announced a multi‑billion‑dollar chip supply contract with Meta, a move that diversifies the AI hardware landscape and reduces reliance on Nvidia alone. Anthropic’s new workplace plugins, from HR to financial research, illustrate how generative AI is moving beyond chatbots into core business processes, promising efficiency gains such as cutting report generation from months to minutes. These developments underscore a rapid acceleration of AI spend across data centres and enterprise software.

On the consumer side, Diageo reported weaker sales and a halved interim dividend under new CEO Dave Lewis, highlighting the strain on premium‑priced spirits amid a global cost‑of‑living squeeze. The company’s strategy now pivots toward value‑oriented brands and untapped zero‑alcohol segments, mirroring broader UK consumer trends toward high‑protein foods, low‑alcohol drinks, and Korean skincare. Investors, especially Gen Z, are increasingly weighting such lifestyle shifts into portfolio decisions, seeking firms that can adapt to evolving preferences. The convergence of tariff uncertainty, AI investment, and shifting consumer demand creates a nuanced landscape for value‑focused investors.