WSJ What’s News - What’s News in Markets: Apple’s Investment, Fannie and Freddie’s IPO, Crocs’ Misstep

Episode Date: August 9, 2025

How did Apple avoid tariffs on its chips? And are mortgage lenders Fannie and Freddie set to go public? Plus, what caused Crocs shares to plunge? Host Jack Pitcher discusses the biggest stock moves of the week and the news that drove them. Sign up for the WSJ's free Markets A.M. newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey listeners, it's Saturday, August 9th. I'm Jack Pitcher for The Wall Street Journal, and this is What's News and Markets. Our look at the biggest stock moves of the week and the news that drove them. Let's get to it. Major stock indexes bounce back this week, shrugging off tariff and economic concerns. As has been the theme for most of the last two years, the biggest mega-cap technology companies led the way. Apple and Nvidia shares both. posted outsized gains this week, collectively adding hundreds of billions of dollars in market

value. Investors are continuing to pile into AI-related stocks, helping cover up other weak spots in the market. President Trump's sweeping new reciprocal tariffs went into effect at midnight Thursday. Markets largely took the rollout in stride, and many countries are in the midst of negotiations seeking fresh trade deals or carve-outs. For the week, the S&P 500 added 2.4%, while the Dow was 1.3% higher. The NASDAQ composite rose 3.9% to close Friday at a new record. It was a great week for Apple, whose CEO Tim Cook held a productive visit to the White House. Cook announced at an event with the president on Wednesday that Apple was pledging to invest $100 billion in its domestic manufacturing capabilities. At the same event, Trump said he was imposing

roughly 100% tariffs on all chips coming into the U.S., but would exempt Apple and other tech companies that had promised to manufacture more domestically. Chips are a key component of nearly all Apple devices, and the iPhone maker's shares rallied 13% on the week, helping propel the NASDAQ to a new record. Many companies and countries are angling to secure similar exemptions with a White House that has shown it is open to dealmaking. A big shake-up could be on the horizon for Fannie Mae and Freddie Mac. As we reported on Friday, the Trump administration is preparing to sell stock in the mortgage giants, which have been under government control since the 2008 financial crisis.

The plans being discussed by the administration could raise around $30 billion for Fannie and Freddie, which bundle and sell mortgages. It's unclear whether Fannie and Freddie would remain under government control. The firms have long benefited from the market expectation that the government would bail them out of any trouble through a so-called implicit guarantee. President Trump said he wants to keep that guarantee after an offering, but hasn't explained how it would work. Analysts have warned that mortgage rates could rise without the expectation of government support. A small number of shares of the two mortgage giants already trade on the over-the-counter market. Freddie Max shares and did

21% higher on Friday. Tariffs are starting to bite for Crocs, the popular clog and sandal maker. And in earnings report Thursday morning, the company said sales would decline in the current quarter and didn't offer a forecast for the rest of the year. Chief Executive Andrew Reese joined a chorus of executives who had begun to flag the consumers are tamping down on their spending. Meanwhile, the company said it expects to take a $90 million dollar hit annually from import levies if tariffs remain at the current rates. The shares tanked 29% on Thursday to their lowest level since 2022 and are down 23% for the week.

And now you know, what's news in markets this week? Today's show is produced by Zoe Colkin and Pierre Biennamy with supervising producer Michael Cosmites. I'm Jack Pitcher. Have a great weekend. Thank you.