Nasdaq 100: Tech Stocks Rally on AI Chip Shift and U.K. Trade Deal Hopes; Nvidia Leads

Tech Stocks Lead Nasdaq Higher on Hopes of U.S.-U.K. Trade Pact and Easing AI Chip Restrictions

U.S. equity futures rose early Thursday as investors responded positively to former President Donald Trump’s announcement of a trade deal with the United Kingdom, while tech stocks extended gains on signs the Biden-era restrictions on AI chips may be reversed. Futures on the Nasdaq-100 jumped 1.2%, outpacing gains of 0.8% for the S&P 500 and 0.7% for the Dow.

Trump said the agreement would strengthen U.S.-U.K. trade relations “for many years,” although CNN later reported the deal’s scope may be more symbolic, with core tariffs, including a 10% universal levy, remaining in place. Markets also digested comments from Fed Chair Jerome Powell, who warned higher tariffs could slow growth and raise inflation if implemented without offsets.

Are chip stocks driving the Nasdaq rebound?

Semiconductor names were again in focus, lifted by reports that the Trump administration is moving to unwind planned AI chip export controls. Nvidia, AMD, and Broadcom all posted premarket gains of more than 1%. The news follows weeks of concern that tighter AI chip rules would hit global sales and curb growth in the sector.

Alphabet added 2% after pushing back on concerns that Apple device search queries were declining. The stock had tumbled 7% Wednesday after a Bloomberg report suggested AI might dent traditional search volume.

Which tech names are grabbing attention before the open?

Apple and Nvidia each rose more than 1% in premarket action, supported by relief over AI chip policy shifts. Meta, Tesla, and Amazon also gained over 1%.

Meanwhile, Shopify slumped nearly 9% despite beating Q1 revenue expectations, as investors reacted to elevated expense forecasts and recent outperformance.

In contrast, AppLovin surged nearly 15% on a strong earnings beat and the announcement of plans to divest its gaming business.

How did economic data and Fed policy influence sentiment?

Thursday’s move higher followed a volatile session driven by the Fed’s decision to keep rates unchanged. Powell highlighted risks that fresh tariffs could reaccelerate inflation or pressure employment. On the data front, jobless claims fell to 228,000, below expectations, easing concerns raised by the prior week’s spike. A 29,000 drop in continuing claims also reinforced the view that the labor market remains stable despite episodic volatility.

What’s the near-term outlook for the market?

Traders will monitor Trump’s 14:00 GMT news conference for further clarity on the trade agreement’s structure. Any signal of expanding trade barriers could rekindle inflation concerns and weigh on growth-sensitive sectors.

Market attention will also remain on chip policy developments and corporate earnings, especially in tech, where recent guidance cuts from Arm Holdings and Skyworks underscore the uneven sentiment.

For now, easing regulatory risks and resilient labor data are fueling bullish momentum, particularly in the Nasdaq.

More Information in our Economic Calendar.