WSJ What’s News Podcast Summary
Episode: As Trade Deal Deadline Looms, Could Trump’s Tariffs Be Deemed Unlawful?
Release Date: July 31, 2025
Host: Alex Osola

1. Microsoft Achieves $4 Trillion Valuation Driven by AI

Timestamp: [00:53 - 03:17]

In a landmark achievement, Microsoft has become the world's second $4 trillion company, surpassing previously held valuations. This milestone was reached shortly after the company reported outstanding fourth-quarter earnings, particularly excelling in its cloud computing division, Azure.

Sebastian Herrera, Wall Street Journal’s technology reporter, attributes this success to Microsoft's significant investments in artificial intelligence (AI). “[Microsoft] is putting those chips in their data centers and renting them out to many companies who are using them to train large language models,” Herrera explains at [02:08]. This strategic move has allowed Microsoft to capitalize on the burgeoning demand for AI technologies, positioning the company for sustained profitability in the coming year.

Comparing Microsoft with Nvidia, which also recently crossed the $4 trillion mark, Herrera notes the different yet complementary roles both companies play in the AI revolution. While Nvidia manufactures the essential computer chips for AI training, Microsoft leverages these technologies to offer comprehensive AI-driven services.

Looking ahead, Herrera speculates on potential contenders for reaching the $4 trillion valuation next. Sebastian Herrera mentions Apple, which is approaching the threshold but faces challenges in the AI race, and Amazon, which is also benefiting from the growth in its cloud computing services. “[Apple] has struggled a bit more than others because they have fallen behind a bit in the AI race,” he states at [02:46].

2. Stock Market Reactions and IPO Highlights

Timestamp: [03:25 - 05:48]

The stock market experienced a mixed response as the overarching concerns about tariffs weighed on investor sentiment, despite strong earnings reports from tech giants like Microsoft and Meta Platforms. The S&P 500 and Nasdaq saw modest declines of about 0.4% and less than 0.1%, respectively, while the Dow Jones dropped approximately 0.7%, marking its fourth consecutive day of losses.

A standout moment in the market was the impressive debut of Figma, a software company that saw its stock surge over 250% on its first day of trading. The IPO opened at $85 per share and, after a brief pause due to volatility, closed at around $117 per share. This remarkable performance is hailed as one of the most successful initial public offerings in recent years, signaling renewed momentum in the US IPO market. “The enthusiastic reception from investors adds momentum to the US IPO market's recovery,” reports Alex Osola, highlighting the shift from a prolonged standstill exacerbated by market jitters from President Trump’s initial tariff announcements in April.

Other high-profile companies like Klarna, a buy-now-pay-later provider, and StubHub, an online ticket platform, are poised to list shares, anticipating favorable market conditions. Additionally, Apple reported a significant increase in iPhone sales, surpassing Wall Street’s expectations with a 13% year-over-year growth in sales to $66.6 billion. Amazon also reported robust growth, with a 13% increase in revenue to $168 billion and a 35% rise in profits, driven partly by its expanding cloud computing business.

3. Tariffs and Legal Challenges to Trump's Emergency Powers

Timestamp: [05:48 - 08:43]

As the deadline for the new trade deal approaches, the focus intensifies on President Donald Trump’s use of emergency powers to impose tariffs. In an ongoing legal battle, a coalition of businesses and Democratic-led states has challenged the legality of these tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977.

Jess Bravin, WSJ Supreme Court correspondent, elaborates on the central issue: the extent of the president's emergency powers. At [06:59], Bravin states, “The central question is how far do the president's emergency powers extend.” The lawsuit contends that the IEEPA does not explicitly grant the authority to impose tariffs, arguing that such actions exceed the delegated powers under the law.

During the court proceedings held in Washington, D.C., the U.S. Court of Appeals for the Federal Circuit is deliberating whether President Trump can legally impose these tariffs in response to the trade deficit. Bravin explains at [07:59], “The question here is, can you imply into the word regulate trade with other countries the right to impose tariffs?”

The court’s decision is anticipated to have significant implications for global trade policies and the balance of executive power. “[The court] recognizes that it's an important case and they need to address it quickly,” Bravin remarks at [08:13]. However, given the case’s potential to escalate to the Supreme Court, the timeline remains uncertain, with no specific deadline set for the appellate decision.

4. Struggles in the Condo Market

Timestamp: [08:49 - 12:04]

The real estate market, particularly the condo sector, is experiencing significant challenges not seen in over a decade. With prices declining and supply increasing, sellers often find it difficult to attract buyers, sometimes feeling "lucky to get an offer."

Veronica Dagger, personal finance reporter, provides an in-depth analysis of the current condo market dynamics. She notes that regions like Texas and Florida are facing an oversupply of condos with dwindling buyer interest, leading to a softer market. In contrast, areas in the Northeast and Midwest exhibit a more competitive environment, albeit without the fervent bidding wars typical of previous years.

Several factors contribute to the downturn in the condo market:

• Affordability Issues: Higher mortgage rates, currently around 7%, make condos less attractive compared to single-family homes. “Condos have a higher list price per square foot than homes do in many major metros,” Dagger explains at [09:50].

• Lack of Control and Rising Costs: Ownership of a condo involves being part of a homeowners association (HOA), which entails paying HOA dues that can increase unexpectedly. Unlike mortgages, HOA fees are not fixed and can rise significantly, adding financial uncertainty for buyers.

• Regulatory Scrutiny Post-Surfside Collapse: The tragic collapse of a condo complex in Surfside, Florida in 2021 has led to heightened regulations and increased oversight of condo buildings nationwide. Many condos now face special assessments to address building damages and compliance issues, deterring potential buyers. “That scared potential buyers away,” Dagger states at [10:37].

Looking forward, Dagger suggests that the condo market could recover with:

• Lower Mortgage Rates: Reduced borrowing costs would make condos more affordable.

• Decreased Prices: More competitive pricing could attract buyers.

• Economic Certainty: Greater stability and confidence in the economy are essential to boost buyer sentiment.

Despite the current downturn, some buyers view condos as a lifestyle choice rather than an investment, which could sustain demand among certain segments of the market. “They don't see it as an investment, they see it as a lifestyle choice,” Dagger adds at [11:30].

Conclusion

This episode of WSJ What’s News provides a comprehensive overview of significant developments in the technology sector, stock market trends, ongoing legal battles over trade policies, and the current state of the condo market. From Microsoft’s impressive valuation driven by AI advancements to the challenges faced by condo sellers amid economic uncertainties, the podcast delivers in-depth analysis and expert insights to keep listeners informed about the key factors shaping today's business landscape.