U.S. stock futures inch lower as investors assess a new salvo in President Donald Trump’s ongoing tariff agenda. Brazil is the latest target of Trump’s levies, with the president hitting out at the nation over its treatment of a political ally. Elsewhere, minutes from the Federal Reserve’s latest meeting suggest that policymakers believe interest rate cuts could be appropriate this year, while WK Kellogg (NYSE:KLG) shares spike after-hours following a report that Ferrero is nearing a purchase of the cereal maker.

1. Futures lower

U.S. stock futures pointed lower on Thursday after Trump threatened Brazil with elevated tariffs, opening up a fresh front in his aggressive trade agenda.

By 03:42 ET (07:42 GMT), the Dow futures contract had fallen by 125 points, or 0.3%, S&P 500 futures had dropped by 15 points, or 0.2%, and Nasdaq 100 futures had dipped by 47 points, or 0.2%.

The main averages on Wall Street rose in the prior session, buoyed by meeting minutes from the Federal Reserve which sparked hopes that the central bank will eventually slash interest rates this year.

Amid the gains, shares of artificial intelligence-darling Nvidia (NASDAQ:NVDA) jumped by 1.8%, giving it a market capitalization of $3.97 trillion. During the session, the company briefly became the first to ever notch a market value of $4 trillion.

Nvidia’s increase fueled a rise in the tech-heavy Nasdaq Composite to an all-time closing high.

"[T]he big driver of the recent advance is a belief that tariffs will either be watered down from the current threat levels and/or have only a benign effect on inflation while other categories of the economy [...] cause prices in aggregate to move in a disinflationary direction, opening the door for the Fed to resume policy easing," analysts at Vital Knowledge said in a note to clients.

2. Trump threatens Brazil with 50% tariffs

Still, Trump’s continued trade battles have led to some investors remaining cautious around the broader trajectory of the economy.

In the latest salvo in what has been a flurry of trade-related headlines this week, the president said he planned to slap a 50% tariff on all imports from Brazil. The levies, which would come into effect from August 1, were partially a response to Trump’s anger at the perceived mistreatment of former Brazilian President Jair Bolsonaro, his political ally in the South American country.

Trump wrote in a letter to Brazil’s current President Luiz Inácio Lula da Silva that the treatment of Bolsonaro -- who is facing a trial for attempting to carry out a coup -- is "an international disgrace."

The 50% levies would be the highest rate out of a slew of letters sent out by Trump this week, which were issued following his decision to postpone a deadline for the implementation of his so-called "reciprocal" duties to August 1. They had previously been set to come into force on Wednesday, after an initial pause in April.

Analysts have suggested that the move is more politically motivated than related to trade grievances. Brazil is the 15th-largest U.S. trading partner and a rare net importer of American goods.

Separately, Trump also said he would place a 50% tariff on imported copper, reiterating a statement he made on Wednesday. Trump wrote on his social media platform that he had received a national security report detailing the importance of the red metal.

3. Fed minutes in focus

Trump’s tariffs remain one of the major driving forces behind an uptick in broad-based uncertainty that has dented consumer confidence and complicated investment decisions for businesses.

The Fed has also cited the levies as a key reason why it has chosen to largely adopt a wait-and-see attitude to future interest rate reductions. Many economists have flagged that the tariffs could push up inflationary pressures and weigh on growth.

Minutes from the Fed’s latest gathering in June appeared to bolster this feeling, with the document showing that just "a couple" of policymakers found it appropriate to consider cutting borrowing costs as soon as this month. The comments come even as Trump himself has frequently criticized Chair Jerome Powell for not moving quickly to slash rates, even going as far as calling for Powell’s resignation.

Powell has stayed mostly steadfast in his support of a more cautious Fed stance in recent weeks, but has indicated that a cut is still possible this year. "Most participants" at the Fed meeting believed a drawdown would be appropriate later in 2025, with price shocks from tariffs tipped to be "temporary or modest," the minutes showed.

4. WK Kellogg spikes on report Ferrero nearing acquisition - WSJ

Shares of WK Kellogg surged in extended hours trading after the Wall Street Journal reported that family-owned Italian candy group Ferrero is closing in on a roughly $3 billion deal to buy the cereal maker.

Citing people familiar with the matter, the WSJ reported that Ferrero -- the company behind brands like Ferrero Rocher and Nutella -- could finalize the deal for WK Kellogg as soon as this week should there be no last minute wrinkles in the negotiations.

A deal would bring Ferrero together with WK Kellogg, the firm famous for its breakfast cereals like Froot Loops and Rice Krispies that have become supermarket staples.

Ferrero has been on the hunt for U.S. acquisitions as it eyes international expansion and growth in its offerings. It has previously purchased Blue Bunny-manufacturer Wells Enterprises and rival Nestle’s U.S. chocolate unit.

WK Kellogg, which is itself a result of Kellogg spinning off its North American cereal business around two years ago, is facing a shift in behavior among inflation-hit and more health-conscious shoppers.

5. TSMC sales top forecasts

Taiwan Semiconductor Manufacturing Co (TSMC) (TW:2330) on Thursday posted a 39% jump in second-quarter sales, surpassing market expectations thanks to strong global demand for AI chips.

According to the company’s monthly sales, the total figure for the April-June period came in at NT$933.8 billion ($31.9 billion), exceeding LSEG estimates of NTT$927.83 billion.

It also topped TSMC’s prior guidance range of $28.4 billion to $29.2 billion issued in April.

The strong revenue performance underscores robust global appetite for advanced chips, particularly those tailored for artificial intelligence workloads.

TSMC, the world’s largest contract chipmaker, counts key clients such as Nvidia and iPhone-maker Apple (NASDAQ:AAPL) among its customer base.