Stock futures advanced early Thursday after President Donald Trump announced a 100% tariff on imported semiconductors and chips—with a key exemption for companies manufacturing in the United States. The move helped ease investor concerns and fueled gains across the tech sector.
Dow futures rose 241 points, or 0.5%, while S&P 500 and Nasdaq 100 futures climbed 0.8% each. Shares of Nvidia and AMD were up more than 1% and 2.5%, respectively, in premarket trading. The VanEck Semiconductor ETF (SMH) gained 2% before the bell.
Apple also saw momentum, rising 3% premarket after announcing it would spend an additional $100 billion on U.S. companies and suppliers over the next four years—on top of the $500 billion commitment it made earlier this year.
Trump’s chip tariff targets foreign manufacturers
In remarks delivered from the Oval Office Wednesday evening, President Trump laid out the policy shift: a blanket 100% tariff on chip imports unless a company is building or has pledged to build domestically.
“We’re going to be putting a very large tariff on chips and semiconductors,” Trump said. “But the good news for companies like Apple is if you’re building in the United States or have committed to build, there will be no charge.”
The announcement triggered a rally across semiconductor and tech stocks, which had recently been under pressure from trade policy uncertainty. Analysts note that while the tariffs may raise costs for some importers, exemptions for U.S.-based operations are likely to soften the blow for key sectors.
Market performance: Weekly and daily snapshots
Stocks closed higher on Wednesday, adding to cautious gains seen earlier in the week. The S&P 500 rose 0.7%, the Nasdaq Composite advanced 1.2%, and the Dow Jones Industrial Average added 81 points, or 0.2%.
Week-to-date performance through Wednesday:
S&P 500: +1.7%
Nasdaq Composite: +2.5%
Dow Jones Industrial Average: +1.4%
This upward trend follows a volatile stretch where both the S&P and Dow logged multiple losing sessions over the prior six trading days. Analysts say momentum has returned on easing trade fears and renewed tech optimism.
Asia-Pacific markets end higher ahead of U.S. session
Markets in the Asia-Pacific region mostly closed in positive territory. Japan’s Nikkei 225 rose 0.65% to finish at 41,059.15, while South Korea’s Kospi gained 0.92%. Hong Kong’s Hang Seng added 0.69%, while the CSI 300 in mainland China was flat. Australia’s S&P/ASX 200 was the outlier, closing down 0.14%.
Sentiment in the region was boosted by the tariff exemptions and positive outlooks from major U.S. tech firms. Oil prices also moved higher, which added strength to energy shares across global indexes.
Energy prices edge up after tariff news
Oil prices rose slightly after Trump’s announcement. Brent crude climbed 1% to $67.56 per barrel, while West Texas Intermediate (WTI) rose 1.13% to $65.06. Energy markets are watching closely for further developments tied to both U.S. tariff policy and pending sanctions related to global oil trade, including any upcoming negotiations between the U.S. and Russia.
After-hours movers: DoorDash, Duolingo, and Airbnb
Several notable companies moved after the close on Wednesday, setting the stage for potential activity during Thursday’s trading.
- DoorDash: Up 6% after beating Q2 earnings estimates with $3.28 billion in revenue and 65 cents per share profit
- Duolingo: Up 14% following a strong earnings beat and an upgraded Q3 revenue forecast
- Airbnb: Down 7% despite beating Q2 expectations, as its Q3 forecast came in slightly below analyst estimates
Other stocks drawing investor attention included Rogers Corp, which gained 5% after Starboard Value disclosed a new 9% stake, and Firefly Aerospace, which priced its IPO at $45 per share—above its revised range.
Volatility remains low despite trade headlines
LPL Financial’s head of macro strategy, Kristian Kerr, said volatility across major asset classes has dropped significantly in recent months, suggesting that investors are growing accustomed to trade headlines and Fed policy noise.
“Volatility across major asset classes is currently sitting at unusually low levels,” Kerr said. “Equities have also followed suit, with one-month realized volatility in some of the indexes falling to levels not seen since June of last year.”
What investors are watching next
Markets will be closely monitoring:
- Upcoming earnings from major firms including Eli Lilly, Block, and IonQ
- Potential meeting between President Trump and Russian President Vladimir Putin to discuss the war in Ukraine
- Additional clarification on U.S. semiconductor trade enforcement
- Fed commentary and inflation data updates over the coming week
Investor sentiment remains cautiously optimistic as policy developments and corporate earnings continue to shape daily movements across the major indexes.