Stock Futures Rise: Traders React to Trump’s 100% Tariff Proposal on Chips – Live Updates

Traders at the New York Stock Exchange have a lot on their minds this week. Stock futures were slightly up on Wednesday evening after President Trump announced a new 100% tariff on imported semiconductors and chips. However, companies that build in the U.S. won’t be affected by this tariff.

Apple is in the spotlight. They revealed plans to invest an additional $100 billion in American suppliers over the next four years. This comes after a previous commitment of $500 billion earlier this year, which shows Apple’s dedication to U.S. manufacturing.

During his announcement, Trump emphasized the benefits for companies like Apple that are pledging to build in the U.S. “There will be no charge for those companies,” he said, hinting at a potential shift in the tech landscape.

The stock market seemed to respond positively to this news. The S&P 500 ended Wednesday up by about 0.7%, and the Nasdaq Composite saw a 1.2% increase. Meanwhile, the Dow gained around 81 points.

Traders are closely watching these tariff developments as well as quarterly financial results, which, so far, have generally beaten expectations. According to FactSet, this is a relief after a tough few weeks, where the S&P 500 faced five losses in six days.

Interestingly, Kristian Kerr from LPL Financial noted a drop in market volatility. “Volatility has reached unusually low levels,” he explained, comparing it to levels not seen since June of the previous year. This can reflect increased confidence among investors amid the ongoing tariff discussions.

Earlier in the week, Trump also imposed a 25% tariff on imports from India, raising total tariffs on the country to 50%. This move is part of a broader strategy to respond to India’s purchase of Russian oil, which Trump is addressing as part of his ongoing foreign policy efforts.

As for upcoming economic indicators, traders will be looking for data on jobless claims as well as unit labor costs and productivity for the second quarter.

This evolving scenario highlights the intricate connections between trade policy, market performance, and how global events have immediate repercussions on the stock market. Understanding these trends can help investors navigate the financial landscape more effectively.

For more detailed insights on stock market trends, check out CNBC’s reporting.

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