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Judge voids massive Prince William Digital Gateway project

SUMMARY:

  • Judge rules that county supervisors’ approval vote in 2023 is void
  • Win for 12 Gainesville residents who oppose massive data center campus
  • could be appealed

After their appeal was turned down last month in a different , a group of residents won a battle in their war against the Prince William Digital Gateway, as a circuit court judge voided the massive data center project this week.

On Thursday, Prince William Circuit Judge Kimberly A. Irving ruled in favor of 12 Gainesville residents, known collectively as Oak Valley Homeowners Association, who sued the Prince William Board of Supervisors and the two developers of the project. The Digital Gateway would add as many as 23 million square feet of on 2,100 acres and is considered the world’s largest data center project.

Attorneys for developers H&H Capital Acquisitions and GW Acquisition Co. did not respond to requests for comment Friday.

Irving’s ruling came after a Virginia Court of Appeals decision July 22 against the Oak Valley plaintiffs, which ruled that the county board of supervisors does not have a statutory obligation to consider public input before land-use decisions, upholding a lower court’s ruling.

In December 2023, the county board, including its lame-duck chair, voted to approve rezoning 1,790 acres to allow the project to move forward, following a 29-hour public hearing in which many residents spoke in opposition.

Irving ruled Thursday that the vote was void because the county did not comply with advertising policies established by the state and county to allow the public sufficient notice about the rezoning vote. She also ruled that 10 of the 12 plaintiffs have standing to sue because they “were not only located close to the rezonings but faced a substantial risk of particularized harm as well.”

The Prince William County attorney’s office is reviewing the decision and will advise the county board of supervisors on its next action, a spokesperson said Monday.

The decision could be appealed by the defendants, but it marks a victory for the plaintiffs.

“We were obviously ecstatic with the decision by Judge Irving. … This is a great victory for citizens to have transparent and accountable government,” said Mac Haddow, president of the homeowners association and a plaintiff. “This is going to set a precedent for future decisions by the county board of supervisors” that have impact on homeowners. It’s an “important step to protect our quality of life and our property values going forward.”

He said that his group includes residents of 254 homes, plus other plaintiffs with property adjacent to the data center site, and he expects the developers to appeal.

Haddow said Friday that he and the rest of the plaintiffs want the county to hold a new hearing, advertise it and vote again, and hope the county “won’t spend another penny of our taxpayer money [fighting a case] that’s unwinnable as clearly defined in Judge Irving’s decision.” 

Virginia Business Editor and Associate Publisher Richard Foster contributed to this story.

Wall Street clocks another winning week

Summary

  • U.S. stocks notch another week of gains
  • Investors digest mixed corporate earnings reports
  • Economic data shapes market sentiment
  • S&P 500, Dow and end week higher

U.S. stocks closed higher Friday, capping a choppy week of trading with the market’s third winning week in the last four and another milestone.

The S&P 500 rose 0.8%, finishing just shy of the record it set last week. The benchmark index also wiped out its losses from a slide last week.

The Industrial Average climbed 0.5%, and the Nasdaq composite added 1% to the all-time high it set a day earlier.

Technology companies, with their hefty stock values, did much of the heavy lifting for the market. Nvidia rose 1.1% and gained 4.2%.

Gilead Sciences jumped 8.3% for one of the market’s biggest gains. It reported financial results that easily beat analysts’ forecasts, while also raising its earnings forecast for the year. Expedia Group rose 4.1% after also reporting encouraging financial results.

They are among the final big batch of companies within the S&P 500 to report mostly strong financial results for the second quarter. Still, many have warned that current could cut into their profits.

Financial sector stocks also helped drive the market higher. Bank of America gained 2.4% and Mastercard rose 2.3%.

Elsewhere in the market, entertainment giant Paramount Skydance slid 10.5% a day after the company was created by the closing of an $8 billion merger of Skydance and Paramount. Shares in rival Warner Bros. Discovery sank 8%.

The main focus throughout the week has been on President Donald ‘s trade war and its potential impact on the U.S. economy, as well as the Federal Reserve’s interest rate policy. Trump began imposing higher import taxes on dozens of countries Thursday.

Still, the market appeared to largely shrug off the latest tariff escalation.

“The S&P 500’s rebound this week may highlight the extent to which the market is becoming numb to tariff headlines,” said Daniel Skelly, head of Morgan Stanley’s Wealth Management Market Research & Strategy Team.

The unknown path of the economy amid an unpredictable tariff policy has been the key reason for the Fed to hold its benchmark interest rate steady.

Fed Chair Jerome Powell, though, has been under increasing pressure from Trump to cut . Policy decisions aren’t made solely by the Fed chair. All 12 members of the Federal Open Market Committee vote on interest rate changes.

Trump has an opportunity to exert more control over the Fed following his nomination of Stephen Miran to a vacancy on the Fed’s board of governors. Miran is a top economic adviser to Trump and is a near-certain vote in support of lower interest rates.

The Fed’s last decision to hold interest rates steady included two votes to lower interest rates. Its next meeting is in September, and is overwhelmingly betting that the central bank will cut interest rates by a quarter of a percentage point.

Treasury yields edged higher. The yield on the 10-year Treasury rose to 4.28% from 4.25% late Thursday. The yield on the two-year Treasury which more closely tracks expectations for Fed actions, rose to 3.76% from 3.73% late Thursday.

The expectation for an interest rate cut follows a series of signals last week that the economy could be weakening. That included reports showing that edged higher in June and employers in the U.S. hit the brakes on hiring in July.

Both are key concerns for the Fed, which has been trying to cool inflation down to its target rate of 2% while also fulfilling its “full employment” mandate.

Lower interest rates can give the economy and investment prices a boost, though the downside is that they can also push inflation higher. Concerns about inflation reheating could be overshadowed by worries about a weakening employment market.

Wall Street and the Fed will get more insight next week on inflation’s temperature and the economy. The government will release updates on inflation at both the consumer and wholesale levels, along with a report on retail sales.

“We believe stocks will stay supported amid solid fundamentals, but fresh headlines in the coming week may challenge investor sentiment that remains vulnerable to tariff, economic, and geopolitical risks,” said Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and global head of equities at UBS Global Wealth Management.

All told, the S&P 500 rose 49.45 points to 6,389.45. The Dow rose 206.97 points to 44,175.61, and the Nasdaq rose 207.32 points to finish at 21,450.02.

Asian markets closed mostly lower except in Tokyo, where the Nikkei rose 1.9% after Japan’s main trade envoy said the U.S. had agreed to correct a problem over tariffs that will apply to exports to the U.S.

European markets were mixed.

Trump removes Billy Long as IRS commissioner less than 2 months after his confirmation

WASHINGTON (AP) — President Donald has removed former U.S. Rep. Billy Long as IRS commissioner less than two months after his confirmation, a White House official said Friday.

The official, who was not authorized to speak publicly and spoke on condition of anonymity, did not give a reason for the dismissal. Treasury Secretary Scott Bessent will serve as acting commissioner, the official said.

The Senate confirmed Long on a 53-44 vote despite Democrats’ concerns about the Republican’s past work for a firm that pitched a fraud-ridden coronavirus pandemic-era tax break and about campaign contributions he received after Trump nominated him.

While in Congress, where he served from 2011 to 2023, Long sponsored legislation to get rid of the IRS. A former auctioneer, Long has no background in tax administration.

Boar’s Head to reopen plant despite sanitation concerns

Summary

  • Boar’s Head plans to reopen troubled deli meat facility
  • Past inspections flagged and safety concerns
  • Company says upgrades will address contamination risks
  • advocates urge stricter oversight before reopening

The deli meat plant at the heart of last year’s deadly food poisoning outbreak is set to reopen in the coming months, company officials said.

But recent inspections at Boar’s Head sites in three states documented sanitation problems similar to those that led to the listeria contamination that killed 10 people and sickened dozens.

The Jarratt, Virginia, plant was shut down in September when U.S. Agriculture Department officials suspended operations and withdrew the federal marks of inspection required to operate, saying the company “failed to maintain sanitary conditions.” Boar’s Head permanently stopped making liverwurst and recalled more than 7 million pounds of deli products.

USDA officials this week said they had “thoroughly reviewed” the plant and lifted the forced suspension on July 18.

“The facility is in full compliance of the guidelines and protocols set for the safe handling and production of food and the serious issues that led to suspension have been fully rectified,” officials with the USDA’s Food Safety and Inspection Service said in an email Wednesday.

And yet, documents obtained by The Associated Press through a freedom of information request show that Boar’s Head plants in Arkansas, Indiana and elsewhere in Virginia were flagged for the same kinds of sanitation problems that led to the outbreak, with the most recent report in June.

In the past seven months, government inspectors reported problems that include instances of meat and fat residue left on equipment and walls, drains blocked with meat products, beaded condensation on ceilings and floors, overflowing trash cans, and staff who didn’t wear protective hairnets and plastic aprons — or wash their hands.

The records, which included USDA noncompliance reports logged by inspectors from Jan. 1 through July 23, raise new questions about the company’s promises to address systemic problems and about federal oversight of listeria contamination in plants that make ready-to-eat foods.

“If there is evidence that food safety problems are continuing, the government needs to make sure the company fixes them,” said Sandra Eskin, a former USDA official who now heads STOP Foodborne Illness, a consumer group focused on food safety.

Agriculture Secretary Brooke Rollins last month announced plans to bolster efforts that combat foodborne germs, including listeria.

Jobs posted in Virginia

Officials at Boar’s Head, the 120-year-old company based in Sarasota, Florida, have posted job openings for two dozen positions, including a food safety quality analyst, at the Jarratt site.

The company convened a panel of expert advisers last fall and hired a chief food safety officer in May. The advisers include Frank Yiannas, a former U.S. Food and Drug Administration official, and Mindy Brashears, President Donald ‘s nominee for USDA’s undersecretary for food safety.

Boar’s Head last year said they “regret and deeply apologize” for the contamination and that “comprehensive measures are being implemented to prevent such an incident from ever happening again.”

But company officials refused to discuss the problems found this year. They canceled a scheduled AP interview with Natalie Dyenson, the new food safety officer. And they declined to allow Yiannas to detail the investigation he led into the contamination’s cause.

Brashears, who now directs a food safety center at Texas Tech University, did not respond to requests for comment about the Boar’s Head problems. An automatic email reply said the USDA nominee was traveling out of the country until Aug. 25. She remains on the company’s food safety board.

“Boar’s Head has an unwavering commitment to food safety and quality. That commitment is reflected in recent enhancements to our practices and protocols” described on the company’s website, Boar’s Head said in an emailed statement.

“We have also been working with the USDA in developing a plan to reopen our Jarratt facility in a measured, deliberate way in the coming months,” the statement said.

Inadequate sanitation practices

The 35 pages of new inspection findings cover Boar’s Head sites in Forrest City, Arkansas; New Castle, Indiana; and Petersburg, Virginia.

They surprised outside food safety advocates, who said that factory conditions should have improved in the year since the outbreak was first identified.

“You would have expected after all they went through that they would put themselves in a place where you could essentially eat deli meat off the factory floor,” said Brian Ronholm, director of food policy for Consumer Reports, an advocacy group.

Rep. Rosa DeLauro called the findings “appalling.”

“This is a pattern of negligence — cutting corners to protect the company’s bottom line at the expense of consumers and these conditions show a complete disregard for food safety and for the public health of the American people,” the Connecticut Democrat said in a statement.

The findings echo the “inadequate sanitation practices” that USDA officials said contributed to the outbreak. Key factors included product residue, condensation and structural problems in the buildings, a January report concluded.

At the Jarratt plant, state inspectors working in partnership with USDA had documented mold, insects, liquid dripping from ceilings, and meat and fat residue on walls, floors and equipment, the AP previously reported.

While no instances of insects were documented in this year’s inspection reports, there were repeated reports of “dried fat and protein from the previous day’s production” on equipment, stairs and walls. In April, an inspector at the Petersburg plant reported finding discarded meat underneath equipment, including “5-6 hams, 4 large pieces of meat and a large quantity of pooling meat juice.”

Other reports detailed beaded condensation “directly over the food contact surfaces of tables and conveyor belts.” Additional reports documented rusting meat racks, doors that failed to close completely and staff who ignored required handwashing stations.

The reports point to a “food safety culture problem,” said Barbara Kowalcyk, who directs a food safety and nutrition security center at George Washington University.

“What jumped out to me is there is an organizational culture issue that needs to be changed,” she said. “Usually that culture has to start at the top.”

In the meantime, she advised consumers to think carefully about deli meat consumption. Older people and those who are pregnant or have weakened immune systems are especially vulnerable to serious illness from listeria infections.

“I think they need to be aware that there are issues at this organization that still are not completely under control, apparently,” Kowalcyk said.

Boar’s Head faced multiple lawsuits from people who fell ill or from the families of those who died. Several survivors declined to comment publicly on the new problems, citing financial settlements with the company that included nondisclosure agreements.

HCA plans $260M hospital in Chesterfield County


SUMMARY:

  • Virginia plans to build a $260 million, 60-bed in
  • It aims to open by 2029–2030, pending zoning and state approval
  • Local leaders support it to avoid overcrowded hospitals and long EMS transport times

plans to construct a new $260 million hospital in Chesterfield County, citing the county’s growing population.

In a July filing with the , the health system detailed a plan to build a 60-bed acute care hospital — known as Magnolia Hospital — on an approximately 24-acre property in , located at 16100, 16300, and 16500 Hull Street Road.

Magnolia Hospital would contain 54 medical/surgical beds, six intensive care unit beds, four general-purpose operating rooms and one MRI scanner. HCA says it anticipates adding approximately 360 full-time workers, including 142 registered nurses, to staff the new facility.

The new HCA hospital would be at a “highly accessible” location at the epicenter of population growth in the county, HCA said in its application to the state health department. In an area of high population growth where traffic congestion can hinder timely access to , HCA contends, the new hospital would meaningfully improve health care access for patients.

Gaining more than 30,000 residents since 2020, Chesterfield County has led the state in population growth in recent years. HCA’s application for the hospital noted that the county’s population is approaching 400,000, with continued growth projected into the coming decade.

Shaila Menees, chief development officer of ‘s capital division, told Virginia Business that the goal of the new hospital is to be as close to people’s homes as possible, thereby reducing the travel time necessary for them to receive health care.

“We are thrilled to be able to put this kind of an asset in this area,” she said. “I think the intent is to meet the community where they are and to provide services that are desirable for those that are in the community today and will be in the community in the future.”

The land for Magnolia Hospital, currently zoned by the county for a mix of agricultural and general business uses, will need to be rezoned to Community Business District. Attorney Andy Condlin of firm Roth Jackson is representing HCA in its rezoning request.

The health system is under contract to purchase property for the hospital from limited liability company Nunnally Village, depending on whether the site gets zoning approval and a state certificate of public need. The state health commissioner hadn’t yet decided whether to grant HCA’s request for Magnolia Hospital; Menees says it will likely be nine to 12 months before a decision is made.

In addition to helping underserved areas of Chesterfield, Magnolia Hospital will also be an asset for Amelia and Powhatan counties, as the hospital will be located near an expansion of Powhite Parkway planned to open in 2030.

In HCA’s state application, the project received support from Chesterfield County Administrator Joseph Casey, the Powhatan County Fire & Rescue Department and Amelia County.

Chesterfield County Fire and Emergency Medical Services said that patients are often transported outside of the county’s boundaries due to existing county hospitals being at capacity. “This results in significantly increased patient transport times and keeps ambulances away from their primary service areas longer and unable to respond to the next emergency,” the agency wrote.

Casey wrote, “The need for Magnolia is clear. Placing these resources closer to where patients live and work will incentivize patients to obtain needed care sooner before their medical conditions worsen, which will speed recovery, reduce costs, and result in a healthier and more productive community.”

According to HCA’s application with the state, HCA’s Chippenham Hospital, located just outside the county border in Richmond, was established in 1972, when the county’s population was 86,000. In 1980, relocated from Richmond to Chesterfield to meet the needs of the county’s growing population, which at the time was 141,000. However, the application notes that Chesterfield’s population had grown to 394,825 as of July 2024 and is projected to reach 407,000 by 2030.

The exact timeline for when Magnolia Hospital could open isn’t set in stone, but Menees said it will likely be 43 months following state approval of the certificate of public need, so the new hospital would likely be ready to open in 2029 or 2030.

Part of Nashville-based HCA Healthcare, HCA Virginia operates 14 hospitals, 26 outpatient centers, eight freestanding emergency rooms and is affiliated with more than 3,100 physicians. With more than 300,000 employees, HCA Healthcare has 190 hospitals and approximately 2,400 ambulatory sites of care in 20 states and the United Kingdom. It reported $70.603 billion in 2024 revenue.

Judge orders Averett dispute to arbitration


SUMMARY:

    • Federal judge compels to enter with ex- and investment firm
    • Averett alleges $20M was mismanaged from its endowment fund
    • University cited financial hardship as reason to avoid arbitration

A federal judge on Wednesday ordered Averett University to hash out its differences with its former investment firm and former chief financial officer through arbitration.

The financial plight of the private university first came to light in summer 2024 when the university announced staff furloughs and other cost-cutting measures over alleged mismanagement of the school’s finances. The picture became clearer in March when Averett filed a lawsuit in U.S. District Court for the Western District of Virginia, alleging that the university’s former CFO, Donald Aungst, who was hired in 2020, and Arizona-based Global Strategic Investment Solutions (GSIS) “surreptitiously drained Averett’s endowment of almost $20 million.”

In June, GSIS filed a motion to compel arbitration, pointing out that university leaders had signed a contract with an arbitration provision.

In an opposition to GSIS’s motion, Averett unsuccessfully argued that “the costs associated with arbitration would impose upon Averett such financial hardship as to render arbitration both unjust and prohibitively expensive.” Averett went on to note that GSIS is “grossly underinsured,” with only $2 million in coverage, including defense costs. “Every dollar GSIS spends to pay for arbitration is one less dollar available to satisfy a judgment,” the filing from Averett stated.

In addition to compelling arbitration between the parties, U.S. District Judge Thomas Cullen also ordered the parties to notify the court within 14 days following the completion of arbitration, and “the court will evaluate any remaining disputes.”

An Averett spokesperson said Thursday that the university would not comment on the pending legislation. However, in a July 25 interview with Virginia Business, Averett President Thomas H. Powell, who joined the university in May, indicated then that the dispute going to arbitration wouldn’t be the end of the world. 

“Arbitration might be good because from what I understand … arbitration may be more private than public. Going to court is very public,” Powell said. “I know the board is concerned about what’s our ability to have what was mismanaged set right by the investment firm and by the former CFO.”

In a statement, GSIS co-founder and Managing Partner Curt Thompson said his firm is pleased with the “court’s prompt and well-reasoned decision to compel Averett University to honor the express terms of an arbitration clause found within the parties’ governing investment advisory contract.”

GSIS, he added, “continues to vehemently deny the allegations brought by Averett and now looks forward to vindicating itself before an independent arbitration panel.”

Francisco E. Mundaca, the Maryland-based attorney representing Aungst, said in a statement Thursday that “we are pleased the court has rejected Averett University’s attempts to avoid the arbitration agreement it voluntarily entered into, which demonstrates that institutions cannot simply ignore their obligations when it becomes inconvenient.”

Mundaca went on to say that he believes Aungst will be vindicated.

“Mr. Aungst dedicated over four years of his career to helping Averett navigate unprecedented financial challenges, only to have the university unfairly blame him for institutional problems that existed long before his arrival,” Mundaca said in the statement. “We are now evaluating all available legal remedies to protect Mr. Aungst’s reputation and hold accountable those who have damaged his distinguished 36-year career in .”

Since Averett announced its financial difficulties, university leaders have cut programs, implemented a hiring freeze and sold properties. In July, Powell confirmed the president’s home had been sold to an out-of-state buyer for $650,000. An auction with furnishings from the house and other items raised an additional $70,000, according to the president.

The university estimates that about 1,356 students will enroll for Averett’s fall semester,  about 100 fewer than last year.

“Certainly all of the problems have not helped,” Powell said in July of the enrollment challenges. “The other thing that I think was a blunder … the No. 1 thing that got cut out was [$1 million] worth of marketing that has been long-standing, and if you don’t tell people you’re here in a very competitive market, you lose that market share. So we’ve got to go back and rebuild that out.”

Powell became Averett’s 16th president. He replaced David Joyce, who stepped down in April after serving just three months, citing his wife’s health. Tiffany Franks, Averett’s president of 17 years, retired in January.

This summer, Averett is trying to locate enough bondholders to make a request for a covenant default waiver for about $15 million worth of bonds owed by the university. Although Averett has never missed a payment on the bonds, the university is technically in default due to failing to comply with the debt service coverage ratio and the liquidity covenant, according to a June 27 filing by U.S. Bank Trust, trustee of the bonds.

A July 7 call managed to attract only about 40% of the bondholders instead of the 50% required, according to Powell. “There are over 240 bondholders,” he said in July, “and there’s no directory of where these people are.”

Stocks mixed as Trump tariffs take effect worldwide

Summary

  • S&P 500 slips 0.1%, Dow drops 330 points, gains 0.4%
  • ‘s new on dozens of countries take effect
  • Investors weigh tariff damage against strong earnings, rate cut hopes
  • Global stock indexes rise in Asia and Europe; bond yields steady

Stocks are drifting in mixed trading on Thursday after President Donald Trump’s latest tariffs took effect on dozens of countries.

The S&P 500 edged down by 0.1% after climbing earlier in the day to the edge of its record, which was set late last month. The Industrial Average was down 330 points, or 0.7%, as of 11:45 a.m. Eastern time, and the Nasdaq composite was 0.4% higher.

Worries are still high that Trump’s tariffs are damaging the economy, particularly after last week’s worse-than-expected report on the job market. But hopes for coming cuts to interest rates by the Federal Reserve and a torrent of stronger-than-expected profit reports from big U.S. companies are helping to offset the concerns, at least for now. Lower interest rates can give the economy and investment prices a boost, though the downside is that they can also push higher.

The Bank of England cut its main interest rate on Thursday in hopes of bolstering the sluggish U.K. economy.

The U.S. tariffs that took effect Thursday morning were also already well known, as well as lower than what Trump had initially threatened. Some countries are still trying to negotiate down the tax rates on their exports, and continued uncertainty seems to be the only certainty on Wall Street. All the while, the U.S. faces criticism that it’s climbed too far, too fast since hitting a bottom in April and left prices looking too expensive.

The latest reports on the U.S. economy came in mixed, meanwhile, which left Treasury yields relatively stable in the bond market.

One said that slightly more U.S. workers applied for unemployment benefits last week. That could be an indication of rising layoffs, but the number remains within its recent range.

“There is nothing to see here!” according to Carl Weinberg, chief economist at High Frequency Economics. “These are not nearly recession readings.”

A separate report said that productivity for U.S. workers improved by more during the spring than economists expected. That could help the U.S. economy grow without adding more pressure on inflation. And that’s particularly important when Trump’s tariffs look set to increase prices for all kinds of things that U.S. households and businesses buy.

On Wall Street, Apple helped lead the market amid hopes that its massive size can help it navigate Trump’s economy. Its stock rose 3% after its CEO, Tim Cook, joined Trump at the White House on Wednesday to say it’s increasing its investment in U.S. manufacturing by an additional $100 billion over the next four years.

Trump also announced a 100% tariff on imported , but he added “if you’re building in the United States of America, there’s no charge.”

“Large, cash-rich companies that can afford to build in America will be the ones to benefit the most,” said Brian Jacobsen, chief economist at Annex Wealth Management. “It’s survival of the biggest.”

DoorDash climbed 4.8% after the delivery app topped Wall Street’s profit expectations for the latest quarter. It attracted new customers and saw the total number of orders increase.

Duolingo, the language-learning app, soared 28.9% after it crushed Wall Street’s expectations. The company said its subscription revenue grew 46% over the same period last year.

They helped offset a drop for Eli Lilly, which fell 14.7% even though the drugmaker reported a stronger profit for the latest quarter than analysts expected. Analysts said some investors were disappointed with results that Lilly provided for a late-stage study of its potential pill version of the popular weight-loss drug Zepbound.

sank 3% after Trump called for its CEO to resign, while accusing him of being “highly CONFLICTED,” though he gave no evidence.

Crocs tumbled 25.2% even though the footwear company reported a stronger profit for the latest quarter than analysts expected. It said it expects revenue to fall between 9% and 11% in the current quarter from a year earlier, while tariffs are dragging on its profitability. The company cited “continued uncertainty from evolving global trade policy and related pressures around the consumer.”

In stock markets abroad, indexes rose across much of Europe and Asia.

Stocks climbed 0.2% in Shanghai and 0.7% in Hong Kong after reported that its exports picked up in July, helped by a flurry of shipments as businesses took advantage of a pause in Trump’s tariff war with Beijing.

Japan’s Nikkei 225 rose 0.6%. Toyota Motor’s stock fell after it cut its full-year earnings forecasts largely because of President Donald Trump’s tariffs, but Sony rose after the entertainment and electronics company indicated it’s taking less damage from the tariffs than it had expected.

In the bond market, the yield on the 10-year Treasury remained at 4.22%, where it was late Wednesday.

Average rate on a 30-year mortgage drops to lowest level since April

Summary

  • 30-year mortgage rate falls to 6.63%, lowest since April
  • Weekly drop reflects decline in long-term
  • Rates still near this year’s high of around 7%
  • High financing costs continue to slow home sales

The average rate on a 30-year U.S. mortgage has fallen to its lowest level in four months, welcome news for prospective who have been held back by stubbornly high home financing costs.

The long-term rate fell to 6.63% from 6.72% last week, mortgage buyer said Thursday. A year ago, the rate averaged 6.47%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also fell. The average rate dropped to 5.75% from 5.85% last week. A year ago, it was 5.63%, Freddie Mac said.

Elevated have helped keep the U.S. in a sales slump that began in early 2022, when rates started to climb from the rock-bottom lows they reached during the pandemic. Home sales sank last year to their lowest level in nearly 30 years.

For much of 2025, the average long-term mortgage rate has remained relatively close to the 7.04% high for this year that it reached in mid-January.

This is the third week in a row that rates have come down. The latest average rate on a 30-year mortgage is now just shy of 6.62%, the low point for this year set April 10.

Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and .

The main barometer is the 10-year Treasury yield, which lenders use as a guide to pricing home loans. The yield was at 4.23% at midday Thursday, up slightly from 4.22% late Wednesday.

The yield is well below where it was last week, before Friday’s weaker-than-expected report on the U.S. job market ignited worries that the  administration’s  are stalling hiring plans by employers.

Last Wednesday, the central bank’s policymaking committee voted to hold its main interest rate steady. And Fed Chair Jerome Powell pushed back on expectations that the Fed could cut rates at its next meeting in September, noting that inflation remained above the Fed’s 2% target and the job market was “in balance.”

But the latest jobs report may shift that stance. Traders on are now betting heavily that the Fed will need to cut next month, something President Donald Trump has been demanding the Fed, and Powell specifically, to do.

A cut in rates could give the job market and overall economy a boost, but it could also fuel inflation just as Trump’s tariff policies risk raising prices for U.S. consumers.

“While both buyers and sellers welcome lower mortgage rates, it’s not clear whether rates will continue to fall,” said Lisa Sturtevant, chief economist at Bright MLS. “A weaker economy could lead to lower mortgage rates, but the risks of higher inflation could keep rates elevated.”

Intel’s stock tumbles after Trump says its CEO must resign

Summary:

  • urges CEO to resign immediately
  • Sen. Tom Cotton cites Tan’s ties to Chinese chip firms
  • Concerns raised over links to Chinese Communist Party, PLA
  • Intel board asked to clarify Tan’s investment divestitures

Shares of Intel slumped Thursday after President Donald Trump said in a social media post that the chipmaker’s CEO needs to resign.

“The CEO of Intel is highly CONFLICTED and must resign, immediately,” Trump posted on Truth Social. “There is no other solution to this problem. Thank you for your attention to this problem!”

Trump made the post after Sen. Tom Cotton sent a letter to Intel Chairman Frank Yeary expressing concern over CEO Lip-Bu Tan’s investments and ties to semiconductor firms that are reportedly linked to the Chinese Communist Party and the People’s Liberation Army, and asked the board whether Tan had divested his interests in these companies to eliminate any conflicts of interest.

Intel did not immediately respond to a request for comment, so it is not immediately clear if Tan has divested his interests in the companies.

“In March 2025, Intel appointed Lip-Bu Tan as its new CEO,” Cotton wrote in the letter. “Mr. Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms. At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army.”

Tan, who took over as CEO in March, previously launched the venture capital firm Walden International in 1987 to focus on funding tech start-ups, including chip makers. ‘s state media has described Tan as “actively” devoted to Chinese and Asian markets, having invested not only in the Taiwan Semiconductor Manufacturing Company but also China’s state-owned enterprise SMIC, which seeks to advance China’s chipmaking capabilities.

The demands made by Trump and Cotton come as economic and political rivalries between the U.S. and China increasingly focus on the competition over chips, AI and other digital technologies that experts say will shape future economies and military conflicts.

Cotton, the chairman of the Senate Intelligence Committee, has raised concerns that Chinese spies could be working at tech companies and defense contractors, using their positions to steal secrets or plant digital backdoors that give China access to classified systems and networks.

On Thursday the Arkansas Republican wrote to the Department of Defense urging Defense Secrectary Pete Hegseth to ban all non-U.S. citizens from jobs allowing them to access DoD networks. He has also demanded an investigation into Chinese citizens working for defense contractors.

“The U.S. government recognizes that China’s cyber capabilities pose one of the most aggressive and dangerous threats to the United States, as evidenced by infiltration of our critical infrastructure, telecommunications networks, and supply chains,” Cotton wrote in an earlier letter calling on the Pentagon to conduct the investigation.

officials have linked China’s government to hacking campaigns targeting prominent Americans and critical U.S. systems.

“U.S. companies who receive government grants should be responsible stewards of taxpayer dollars and adhere to strict security regulations,” Cotton wrote on the social platform X.

Intel had been a beneficiary of the Biden administration’s CHIPS Act, receiving more than $8 billion in federal funding to build computer chip plants around the country.

Shares of the California company slid 3.5%, while markets, particularly the tech-heavy , gained ground.

Founded in 1968 at the start of the PC revolution, Intel missed the technological shift to mobile computing triggered by ‘s 2007 release of the iPhone, and it’s lagged more nimble chipmakers. Intel’s troubles have been magnified since the advent of artificial intelligence — a booming field where the chips made by once-smaller rival Nvidia have become tech’s hottest commodity.

Intel is shedding thousands of workers and cutting expenses — including some domestic semiconductor manufacturing capabilities — as Tan tries to revive the fortunes of the struggling chipmaker.

Trump imposes 100% tariff on imported computer chips

Summary

  • to impose 100% tariff on imported
  • U.S. chipmakers and investors like likely spared
  • Tariff could drive up prices for electronics, cars, and appliances
  • Chip shortage during pandemic previously fueled

WASHINGTON (AP) — President Donald Trump said Wednesday that he will impose a 100% tariff on computer chips, raising the specter of higher prices for electronics, autos, household appliances and other essential products dependent on the processors powering the digital age.

“We’ll be putting a tariff of approximately 100% on chips and semiconductors,” Trump said in the Oval Office while meeting with Apple CEO Tim Cook. “But if you’re building in the United States of America, there’s no charge.”

The announcement came more than three months after Trump temporarily exempted most electronics from his administration’s most onerous .

The Republican president said companies that make computer chips in the U.S. would be spared the import tax. During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to higher inflation.

Investors seemed to interpret the potential tariff exemptions as a positive for Apple and other major tech companies that have been making huge financial commitments to manufacture more chips and other components in the U.S..

Big Tech already has made collective commitments to invest about $1.5 trillion in the U.S. since Trump moved back into the White House in January. That figure includes a $600 billion promise from Apple after the iPhone maker boosted its commitment by tacking another $100 billion on to a previous commitment made in February.

Now the question is whether the deal brokered between Cook and Trump will be enough to insulate the millions of iPhones made in and India from the tariffs that the administration has already imposed and reduce the pressure on the company to raise prices on the new models expected to be unveiled next month.

certainly seems to think so. After Apple’s stock price gained 5% in Wednesday regular trading sessions, the shares rose by another 3% in extended trading after Trump announced some tech companies won’t be hit with the latest tariffs while Cook stood alongside him.

The shares of AI chipmaker Nvidia, which also has recently made big commitments to the U.S., rose slightly in extended trading to add to the $1 trillion gain in market value the Silicon Valley company has made since the start of Trump’s second administration.

The stock price of computer chip pioneer , which has fallen on hard times, also climbed in extended trading.

Inquiries sent to chip makers Nvidia and Intel were not immediately answered. The ‘s main trade group, the Semiconductor Industry Association, declined to comment on Trump’s latest tariffs.

Demand for computer chips has been climbing worldwide, with sales increasing 19.6% in the year-ended in June, according to the World Semiconductor Trade Statistics organization.

Trump’s tariff threats mark a significant break from existing plans to revive computer chip production in the U.S. that were drawn up during the administration of President Joe Biden.

Since taking over from Biden, Trump has been deploying tariffs to incentivize more domestic production. Essentially, the president is betting that the threat of dramatically higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for mobile phones, TVs and refrigerators.

By contrast, the bipartisan CHIPS and Science Act that Biden signed into in 2022 provided more than $50 billion to support new computer chip plants, fund research and train workers for the industry. The mix of funding support, tax credits and other financial incentives were meant to draw in private investment, a strategy that Trump has vocally opposed.