The headlines of Thursday paint an interesting picture, both for policymakers and the markets. Snowflake’s stock jumped on the back of strong demand for their AI products. Intel also saw a boost in its share price thanks to a government-backed $5.7 billion.
The US economy is showing signs of a strong recovery.
Lisa Cook, the Fed governor, reacted to Trump’s order of firing, giving this week a new political dimension. Both investors and government officials are dealing with a volatile and fast-changing environment.
Take a look at today’s most popular stories.
Fed governor pushes back on Trump
Lisa Cook, the Federal Reserve governor, is not going to go down easily. Cook, who was removed by President Trump earlier in the week, has responded with a suit challenging her power grab.
What is Trump’s reason for firing Cook? He cited mortgage fraud accusations from 2021. These allegations surfaced many years before Cook was confirmed to the Senate.
Cook was investigated by the Justice Department for making false claims on her mortgage application, including claiming that properties in Michigan or Georgia were both her primary residences to possibly secure better terms.
According to the legal team of Cook, Trump uses these old accusations as a cover to get rid someone who refused to bend under his demand for aggressive rate reductions. Click here to read the full report
Snowflake takes off on AI cloud growth
Snowflake stock rose nearly 20% following a positive second quarter. Snowflake reported $1.1 billion of revenue in the second quarter, which is up by 32% compared to a year earlier. Earnings per share were $0.35, exceeding expectations.
Snowflake’s forecast for fiscal year 2026 has been raised to $4.4billion, with the company citing a growing demand of its AI-powered cloud data.
Over 6,100 users are using the AI tools on a weekly basis, indicating that more businesses are relying upon its platform.
Analysts quickly revised their price target. The surge in stock was the largest single-day move for Snowflake in this year. It reflects confidence in Snowflake’s AI and cloud analytics role. Click here to read the full report
Intel boosts its revenue by $5.7B from a government contract
David Zinsner, Intel’s CFO said that the company received an additional $5.7 billion Wednesday evening thanks to a historic deal signed under Donald Trump.
This cash is part of an agreement whereby the US Government purchased a 10% stake at Intel in order to assist the chipmaker in navigating financial difficulties.
Intel is also encouraged to retain control of its contract manufacturing division, the Foundry.
The government also holds a warrant for 5% that will only kick in if Intel’s ownership of its foundry drops below 50%, but the company believes that it won’t be needed.
The investment is based on unpaid grants under the CHIPS and Science Act.
Intel has created a board of directors for its foundry business. It is currently separating the chip-making operations from the design division. After the announcement, shares of Intel fell a little bit to around $25.00.
US GDP jumps by 3.3% due to rising consumer spending
Commerce Department figures updated for the second quarter 2025 show that the US economy grew at a rate of 3,3% annually.
This is a huge turnaround from the contraction of 0.5% in the first three months. This rebound was largely driven by a 29.8% decline in imports that helped boost GDP along with an increase of 1.6% in consumer spending.
Businesses and consumers stockpiled imports in anticipation of Trump’s tariffs.
It is important to note that even though exports and investment fell, the combined effect of stronger consumer demand and lower imports pushed the growth rate well beyond initial expectations. Click here to read the full report
The post Evening Digest: Cook Pushes Back Against Trump, Snowflake Soars 20% and Intel Receives $5.7B Boost may be updated as new developments unfold.
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