WSJ What’s News in Markets: Novo Tumbles, Meta Soars, Apple Sells
Release Date: August 2, 2025

Host: Francesca Fontana, The Wall Street Journal

Market Overview

In this episode of WSJ What’s News in Markets, Francesca Fontana provides a comprehensive analysis of the week’s significant market movements, driven by geopolitical developments, economic indicators, and corporate performances.

Tariff Updates and Market Impact

August has brought critical updates on tariffs that have significantly influenced market sentiments. As Francesca highlights, “It's August, so you know what that means. It's tariff update time” (00:33). The looming deadline for imposing new tariffs, initially set for Friday, August 1st, was extended by President Donald Trump, who declared that the new levies “will go into effect on Aug. 7” (00:33). Additionally, Trump announced an increase in tariffs on Canada to 35%, effective immediately on August 1st.

These tariff developments coincided with a weaker-than-expected jobs report, leading investors to speculate that the Federal Reserve might adopt a more aggressive stance on rate cuts to bolster the economy. The Dow Jones Industrial Average reacted adversely, declining by 2.9%—its steepest drop since early April when initial tariffs were announced. Similarly, the S&P 500 and NASDAQ fell by 2.4% and 2.2%, respectively (00:33).

Company Highlights

1. Novo Nordisk: Struggling in the Weight Loss Market

Novo Nordisk, the Danish pharmaceutical giant known for its weight loss medications Ozempic and Wegovy, faced significant challenges this week. Francesca explains, “Novo Nordisk may be losing its lead in the weight loss market” (00:33). The company not only cut its earnings guidance but also announced the appointment of a new CEO effective August 7th. This leadership change comes at a time when Novo is grappling to regain its rapid growth trajectory, defend its market share against competitors like Eli Lilly, and contend with generic versions produced by compounding pharmacies.

The market reacted sharply to these developments, with Novo’s shares plummeting by 22% on Tuesday and ending the week down a staggering 33% (00:33).

2. Meta Platforms: A Soaring Performance

In contrast, Meta Platforms, formerly known as Facebook and part of the elite "Magnificent Seven" tech firms, delivered an impressive performance. Francesca notes, “Facebook parent Meta platforms on Wednesday both posted quarterly sales and net income that beat expectations” (00:33). The company reported a robust revenue growth of 22%, underscoring the strength of its advertising business, which is pivotal in fueling Meta’s ambitions in artificial intelligence.

Meta’s strong financial results propelled its shares to jump by 11% on Thursday, contributing to a weekly gain of 5.2% (00:33).

3. Microsoft: Achieving a $4 Trillion Valuation

Microsoft also had a remarkable week, bolstered by its cloud computing services and surging demand for artificial intelligence solutions. Francesca highlights, “Microsoft posted strong results, bolstered by cloud computing and massive AI demand” (00:33). This performance led to Microsoft’s market capitalization surpassing the $4 trillion mark, making it only the second company ever to achieve this milestone.

As a result, Microsoft’s shares closed approximately 4% higher on Thursday and recorded a 2% increase for the week (00:33).

4. Apple: Navigating Tariffs and Strong iPhone Sales

Apple Inc. showcased resilience amidst potential tariff challenges. “American shoppers had a big appetite for Apple's iPhones ahead of potential tariff related price hikes,” Francesca observes (00:33). The tech giant reported a 13% increase in iPhone sales for the last quarter, anticipating that exemptions for smartphones from reciprocal tariffs on China are forthcoming. However, Apple faces the prospect of significant import taxes on iPhones manufactured in India following President Trump’s announcement of new levies on the country.

Apple’s CEO, Tim Cook, addressed the financial implications, stating, “Apple's tariff costs will rise to about $1.1 billion in the July to September period” (00:33). This is an increase from the previous quarter’s levy costs of approximately $800 million. Consequently, Apple’s shares experienced a decline of 2.5% on Friday (00:33).

Economic Indicators and Investor Sentiment

The interplay between tariff policies and economic data, such as the lagging jobs report, has created a complex environment for investors. Francesca emphasizes the uncertainty surrounding the Federal Reserve’s potential response, which could include rate cuts aimed at supporting economic growth. This uncertainty is reflected in the volatility observed across major indices, with the Dow, S&P 500, and NASDAQ all experiencing notable declines over the week.

Conclusion

Francesca Fontana wraps up the episode by directing listeners to additional resources: “You can read about more stocks that moved on the week's news in the Score, my column in the Wall Street Journal's Exchange section” (00:33). Produced by Zoe Kolkin with supervising producer Michael Cosmitis, the episode provides a nuanced view of how geopolitical tensions, economic data, and corporate performance intersect to shape market dynamics.

As the markets navigate through these turbulent times, investors remain vigilant, balancing the implications of policy decisions with the performances of leading corporations. Francesca signs off with a positive note: “Have a great weekend and I'll see you next Saturday” (00:33).

Notable Quotes:

• Francesca Fontana at 00:33: “It's August, so you know what that means. It's tariff update time.”
• Francesca Fontana at 00:33: “Novo Nordisk may be losing its lead in the weight loss market.”
• Francesca Fontana at 00:33: “Facebook parent Meta platforms on Wednesday both posted quarterly sales and net income that beat expectations.”
• Francesca Fontana at 00:33: “American shoppers had a big appetite for Apple's iPhones ahead of potential tariff related price hikes.”
• Francesca Fontana at 00:33: “Apple's tariff costs will rise to about $1.1 billion in the July to September period.”
• Francesca Fontana at 00:33: “Have a great weekend and I'll see you next Saturday.”

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