U.S. stock futures pointed higher on Thursday morning, signaling a continuation of Wednesday’s strong rally, as investor sentiment was lifted by major corporate developments and a new push for domestic manufacturing.
Markets are responding positively to comments from former President Donald Trump, who announced a sweeping 100% tariff on imported semiconductors and chips. The move aims to bolster domestic production, with exemptions granted to companies manufacturing within the U.S.
“The good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge,” Trump said.
“So in other words, we’ll be putting a tariff on of approximately 100 percent on chips and semiconductors,” he continued. “But if you’re building in the United States of America, there’s no charge.”
The policy shift was announced alongside Apple CEO Tim Cook, who revealed that the tech company would invest an additional $100 billion in U.S.-based operations. This announcement follows reports on Wednesday that helped drive Apple stock 5.1% higher. In premarket trading Thursday, Apple (NASDAQ:AAPL) extended its gains by another 2.8%.
However, the news wasn’t positive for all semiconductor firms. Shares of Intel (NASDAQ:INTC) dropped 3.1% before the market opened, after Trump publicly called for CEO Lip-Bu Tan to step down, calling him “highly conflicted.”
Wednesday’s session saw all three major indexes close higher, with the Nasdaq leading the way. The tech-heavy index surged 252.87 points, or 1.2%, to close at 21,169.42. The S&P 500 rose by 45.87 points, or 0.7%, to 6,345.06, while the Dow Jones Industrial Average edged up 81.38 points, or 0.2%, ending the day at 44,193.12.
The boost from Apple was seen as a significant driver behind the broader market’s strength.
“Today’s announcement with Apple is another win for our manufacturing industry that will simultaneously help reshore the production of critical components to protect America’s economic and national security,” said Taylor Rogers, a White House spokesperson, in a statement to CNN.
Cook later confirmed the company’s plans to raise its total U.S. investment commitment to $600 billion over the next four years, standing beside Trump during the announcement.
Beyond Apple, corporate earnings results also played a key role in supporting the bullish sentiment. McDonald’s (NYSE:MCD) stock rose 3.0% after reporting second-quarter earnings that topped Wall Street estimates on both revenue and profits.
E-commerce company Shopify (NYSE:SHOP) delivered a major surprise, surging 22.0% thanks to better-than-expected second-quarter sales and strong forward guidance.
Not all earnings reports were well received. Super Micro Computer (NASDAQ:SMCI) plunged 18.3% after issuing disappointing guidance, while Snap (NYSE:SNAP) dropped 17.2% on weaker-than-expected revenue. Disney (NYSE:DIS) also saw its shares fall following a mixed third-quarter report.
Sector-wise, networking stocks led the market, with the NYSE Arca Networking Index jumping 5.6% to a record high. Arista Networks (NYSE:ANET) fueled the move with a 17.5% surge after beating earnings expectations and raising its outlook.
Retail, gold, and airline stocks also showed notable strength, while pharmaceutical names underperformed, dragging the NYSE Arca Pharmaceutical Index down by 1.9%.
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