Nasdaq 100 and S&P500: Tech Stocks Lift US Indices as Tariff Exemptions Ease Fears

Tech Leads Stock Rally as Chip Tariffs Come with a Big Asterisk

Stocks edged higher Thursday as Wall Street largely shrugged off newly announced chip tariffs, focusing instead on broad exemptions that favor U.S.-based production. The Dow Jones Industrial Average climbed 226 points, or 0.5%, while the S&P 500 and Nasdaq gained 0.5% and 0.8%, respectively, thanks to a lift in semiconductor and big tech names.

Why are investors not worried about the tariffs?

The market took Trump’s tariff announcement in stride after it became clear the measures would spare companies manufacturing within the U.S. Trump declared a 100% tariff on imported chips but carved out exemptions for firms “committed” to building domestically. Nvidia and AMD jumped 2% and 3%, respectively, while the VanEck Semiconductor ETF rose 2%. That’s not exactly a market that’s panicking.

Apple added 2% on top of that, thanks to its pledge to spend another $100 billion on U.S. suppliers. Traders appear to be reading this as a push toward reshoring tech manufacturing, not a headwind.

What’s the broader economic backdrop saying?

Jobless claims ticked up just a touch to 226,000, slightly above estimates, while continuing claims hit their highest since late 2021. Still, the report doesn’t point to a major labor market unraveling. Meanwhile, nonfarm productivity rose a better-than-expected 2.4% in Q2, with unit labor costs up 1.6%. Put simply, the economy is showing signs of holding up, even as July’s jobs report hinted at slowing momentum.

Volatility has come in across asset classes. One-month realized vol in the major indexes is back to levels we haven’t seen since last June. The S&P 500 and Nasdaq are up 1.7% and 2.5% so far this week, respectively, chipping away at recent losses.

What sectors and stocks stood out?

Aside from chips, the consumer and tech spaces lit up. Peloton surged 10% after a surprise profit. DoorDash and DraftKings rallied 7% apiece after strong earnings. On the flip side, Fortinet cratered 22% following weak guidance, and E.l.f. Beauty dropped 11% as tariffs on China goods bit into profits.

Eli Lilly slumped 7% despite beating earnings and raising guidance—proof that even strong fundamentals can get sold if the expectations are sky-high. Airbnb slipped 6% on cautious Q3 guidance, and Intel lost 2% after Trump slammed its CEO on social media.

Where do markets go from here?

Right now, the E-mini S&P 500 price is holding above the 50-day moving average near 6,215 and remains comfortably above the 200-day down near 6,024. That tells us we’re still in an uptrend, but we’ve been stuck in a bit of a range lately. The early August dip to 6,239 acted as a floor, while the late July high at 6,468 is acting like a ceiling for now.

More likely than not, markets continue to consolidate unless we get a catalyst. Next week’s CPI could change the picture. For now, it’s a wait-and-see environment—and that’s not a bad thing, especially after the run we’ve had.

More Information in our Economic Calendar.