The Dow Jones Industrial Average gained 200 points as stocks added to the previous session’s gains, with President Donald Trump’s chip tariff announcement buoying tech stocks.
Summary
- Dow Jones Industrial Average gained by more than 200 points as stocks opened higher.
- Tech stocks rose as Trump signaled chip tariffs exemptions forcompanies building in the United States.
- Bitcoin was also up 2% in 24 hours to change hands above $116,000.
The Dow opened 200 points higher, while the S&P 500 rose 0.5% and the Nasdaq Composite added 0.7%. By the close, the Dow ended the day up 81 points, the S&P 500 rose 0.7%, and the Nasdaq advanced 1.2%. Major indices are now nearing record highs after recovering from a brief sell-off on August 1.
A similar rebound was observed in crypto markets. Bitcoin (BTC) has climbed back to above $116,000. The benchmark digital asset rose as stocks bounced. Elsewhere, oil prices hovered slightly positive around $64, while Treasury yields were also little changed as the market weighed the reciprocal tariffs.
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Trump’s “reciprocal” tariffs
Wall Street was eyeing fresh gains as Trump’s “reciprocal” tariffs come into effect, hitting several trading partners of the United States.
After weathering the initial onslaught of the “Liberation Day” tariff announcement, stocks have largely held an upbeat outlook in the face of trade tensions, and rallied amid multiple notable deals. The new sweeping tariffs range between 10% and 50%, with deals in place between the U.S. and Japan, South Korea and the European Union for a new 15% tariff rate.
Meanwhile, a number of countries face higher rates, including Brazil, India and Switzerland. Trump commented via Truth Social that trade deadline sees the U.S. net “billions of dollars in tariffs”.
Tech stocks gain on chip tariffs exemptions
Despite some sense of uncertainty, investors are largely positive and looking beyond the haze with eyes on interest rates, corporate earnings and the broader global economy.
Notably, the tariff market has provided a slight nudge for equities on Thursday, with Trump’s announcement on Wednesday of an exemption from the 100% tariff on imported chips for companies “building in the United States.”
This has seen Nvidia and Advanced Micro Devices shares gain 2% and 3% in early trading respectively.
Apple’s stock also jumped amid the move, rising 2% as the iPhone maker edged higher following commitment to invest an additional $100 billion in the U.S. That means Apple plans to invest up to $600 billion in American companies and suppliers in the next four years.
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