(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

LONDON, Aug 6 (Reuters) - What matters in U.S. and

global markets today

By Mike Dolan, Editor-At-Large, Finance and Markets

A mix of disappointing results from some major semiconductor

chip names, a service sector hiccup and another slight ebb in

hopes for interest rate cut have caused early week stock market

ebullience go a bit flat.

In the thick of a mostly upbeat earnings season, Wall Street

stocks ended in the red on Tuesday, dented in part by continued

tariff tensions and the ISM's survey showing a flat-lining of

services activity last month. But index futures were back up

marginally ahead of Wednesday's bell.

* Chips stocks were side-swiped as Advanced Micro Devices ( AMD )

reported disappointing data center revenue, a segment

including artificial intelligence chips, causing shares in the

California-based company to slump 4% overnight. Another AI

darling, Super Micro, plunged 17% as it missed

estimates in its battles with larger server makers. Better news

for AI enthusiasts came from ChatGPT maker OpenAI, which is in

early talks about a share sale that could value it at a whopping

$500 billion.

* Despite the dour ISM services reading, Federal Reserve

easing speculation declined slightly, with markets now only

pricing in an 80% chance of a cut next month compared to

essentially 100% at this time yesterday. President Donald Trump

said on Tuesday he will decide on a nominee to fill a coming

vacancy on the Fed's Board by the end of the week and narrowed

the possible replacements for Fed Chair Jerome Powell to a list

of four.

* Meanwhile, the tariff saga continues, with new levies set to

come into effect on Thursday. Trump also said sectoral tariffs

on pharmaceuticals and semiconductors would be announced in the

next week, with a small initial tariff on pharma imports

eventually increasing to 250%. The U.S. standoff with India

looks to be at an impasse, meantime, while Swiss President Karin

Keller-Sutter was set to meet Secretary of State Marco Rubio on

Wednesday to negotiate the severe 39% tariffs it faces.

In today's column, I discuss why the Bank of England's slow and

shallow easing cycle has become the third-longest since World

War Two.

Today's Market Minute

* ChatGPT maker OpenAI is in early-stage discussions about a

stock sale that would allow employees to cash out and could

value the company at about $500 billion, a source familiar with

the matter said.

* Since 2023, India has ramped up efforts to police the

internet, including Elon Musk's X. A Reuters investigation looks

at the behind-the-scenes battle between the world's richest

person and authorities in the world's most populous country.

* The U.S. trade deficit narrowed in June due to a sharp drop in

consumer goods imports, and the trade gap with China shrank to

its lowest point in more than 21 years.

* The divergences that run through the U.S. equity and bond

markets have come into sharp relief in recent days. Find out why

navigating the U.S. markets' split personalities is so

challenging in ROI columnist Jamie McGeever's latest column.

* Exxon Mobil and Chevron's bumper oil and gas output in the

second quarter served as a sobering reminder to their European

rivals of the ferocious challenge the latter face in their

attempts to close the production gap that has expanded in recent

years, writes ROI Energy columnist Ron Bousso.

Chart of the day

Trade data and business surveys are the latest inputs to the

Atlanta Fed's rolling "GDPNow" model estimate, which nudged

higher this week to show annualized real GDP growth running at

2.5% for the third quarter - a modest slowdown from the 3%

recorded for Q2. The U.S. trade deficit narrowed in June to a

two-year low on a sharp drop in consumer goods imports, and the

trade gap with China shrank to its lowest in more than 21 years,

as Trump's tariff campaign starts to have an impact. The Budget

Lab at Yale now estimates the average overall U.S. tariff rate

has jumped to 18.3% - the highest since 1934 - from 2-3% in

January.

Today's events to watch

* New York Federal Reserve's global supply chain pressure

index for July (10 AM EDT)

* Fed Board Governor Lisa Cook, Boston Fed President Susan

Collins and San Francisco Fed President Mary Daly all speak

* U.S. corporate earnings: Walt Disney, AIG, MetLife Paycom,

Global Payments, Corpay, Fortinet, Uber, McDonald's, Airbnb,

DoorDash, Emerson, McKesson, Occidental, Corteva, STERIS, Atmos,

Texas Pacific, Cencora, NRG, Rockwell, Dayforce, CF

Industries

* U.S. Treasury auctions $42 billion of 10-year notes

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Opinions expressed are those of the author. They do not reflect

the views of Reuters News, which, under the Trust Principles, is

committed to integrity, independence, and freedom from bias.

(By Mike Dolan

Editing by Frances Kerry)