Wall Street was all over the place Thursday as the Nasdaq Composite edged up 0.4%, lifted by gains in Apple and Nvidia, while the Dow tanked 288 points, thanks in part to a hit to Caterpillar. The S&P 500? Basically flat.
So, what’s driving the split-screen market?
Well, it’s a mix of Trump’s surprise 100% tariff on imported computer chips—with a major exemption for companies that manufacture in the US—and some impressive company earnings. Add in mixed economic signals, and investors are trying to figure out which way is up.
After Trump’s Wednesday night tariff bombshell, chipmakers reacted fast. Nvidia jumped 1%, AMD surged 6%, and the VanEck Semiconductor ETF (SMH) popped more than 1%. That’s because Trump’s tariff is tough—but only on companies not building in the US.
“If you’re building in the United States… there will be no charge,” Trump said, flanked by Apple CEO Tim Cook in the Oval Office.
That’s music to Apple’s ears: they announced an extra $100 billion investment in US manufacturing over the next four years, on top of the $500 billion they pledged earlier.
Apple stock? Up 3%.
While tech soared, the Dow Jones dropped nearly 0.7%, pulled down by Caterpillar’s 2% decline. The construction giant warned that Trump’s tariffs could seriously impact its business. It was a buzzkill for blue-chip stocks overall.
Meanwhile, Intel dropped 3% after Trump called for the resignation of CEO Lip-Bu Tan, claiming he’s “highly CONFLICTED” over alleged China ties. The company didn’t respond.
Despite the political fireworks, the market is taking a wait-and-see approach on the tariff impacts.
“There’s a lot of noise right now, but not much immediate pain,” said Ameriprise strategist Anthony Saglimbene. “Investors are focusing on what they can count on—and that’s still strong earnings and a decent economy.”
Case in point: S&P 500 earnings are on pace to grow 11% in Q2, up from just 4% expected at the end of June. Not bad.
Still, analysts expect the real bite from tariffs to show up in the fall—especially if negotiations with trading partners stall.
Other Movers:
- Crocs cratered 25%, even though it beat expectations. The company blamed a “challenging” environment and refused to offer a full-year forecast.
- Duolingo flew 29% after smashing revenue estimates, fueled by a 46% surge in subscriptions.
- Eli Lilly dropped 13% despite beating earnings, as investors were underwhelmed by weight-loss pill trial results.
- DoorDash rose 4.8% after topping both earnings and revenue forecasts.
- CommScope gained nearly 2% after Bank of America upgraded it, citing its $10.5B sale to Amphenol and a cleaner financial profile.
Trump’s latest tariff blitz is shaking things up—again. But between strong earnings from the tech sector and some better-than-expected economic data (like a productivity rebound), Wall Street’s still standing… if a bit dizzy.
The real test? Later this fall, when the tariff effects start showing up in the numbers. Until then, expect more choppy trading, more Trump tweets, and plenty of market mood swings.
CNBC and the Associated Press contributed to this report.
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