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U.S. Stock Futures Edge Higher Amid Semiconductor Tariff Announcement

U.S. stock futures showed minimal movement Wednesday night as traders closely monitored the fallout from President Donald Trump’s announcement of a 100% tariff on imported semiconductors and chips. The new tariff is aimed at boosting domestic chip manufacturing but has introduced fresh uncertainty into the markets.

As of 9:30 p.m. ET:

• Dow Jones Industrial Average futures rose 29 points, or less than 0.1%
• S&P 500 futures gained approximately 0.1%
• Nasdaq 100 futures climbed 0.1%

The muted movement reflects cautious optimism as investors balance the potential economic impact of the new trade policy with positive earnings reports and corporate investment plans.

Trump Announces Sweeping Chip Tariff With U.S. Manufacturing Exemption

President Trump stated on Wednesday that a 100% tariff would be imposed on all imported chips, except for companies that are actively building or committed to building manufacturing facilities in the United States.

“We’re going to be putting a very large tariff on chips and semiconductors,” Trump said from the Oval Office.
“But if you’re building in the United States, there will be no charge.”

The policy appears to be designed to reshore critical chip supply chains, especially amid ongoing tensions with China and trade concerns involving countries like India.

Apple Commits $100 Billion More to U.S. Production

Tech giant Apple Inc. quickly emerged as a potential winner under the new tariff regime. On the heels of the announcement, Apple revealed plans to invest an additional $100 billion in U.S.-based companies and suppliers over the next four years. This builds on its $500 billion investment pledge made earlier in February.

Following the news:

• Apple stock jumped nearly 3% in after-hours trading
• This adds to a 5% gain during Wednesday’s regular trading session

Apple's latest move is expected to include expanded chip production in Texas, which could further insulate the company from potential supply chain risks and bolster its competitive edge in U.S. markets.

Markets Show Modest Gains Ahead of Tariff Impact

Despite the headline risk from tariffs, major U.S. indexes closed higher on Wednesday:

• The S&P 500 rose 0.7%
• The Nasdaq Composite advanced 1.2%
• The Dow Jones Industrial Average added 81 points, or 0.2%

So far this week:

• The S&P 500 has climbed 1.7%
• The Nasdaq is up 2.5%
• The Dow has gained 1.4%

This comes after a string of losses for all three indexes, driven by mixed corporate earnings and global trade uncertainties. Notably, the S&P 500 had suffered five losing sessions out of the past six, while the Dow posted six down days in the last seven sessions prior to Wednesday.

India Also Targeted as U.S. Escalates Trade Enforcement

In a related move, Trump also raised tariffs on India earlier this week, doubling the total levy to 50% due to the country’s ongoing purchase of Russian oil.

“We are serious about applying pressure on countries trading with Russia unless a peace deal in Ukraine is reached,” Trump said.

India, in response, condemned the action as “unfair and unjustified,” highlighting that several U.S. allies — including those in Europe — continue to trade with Russia in larger volumes than India.

Volatility Declines Despite Geopolitical Uncertainty

According to Kristian Kerr, Head of Macro Strategy at LPL Financial, market volatility has dropped significantly since early April, despite trade tensions.

“Volatility across major asset classes is sitting at unusually low levels,” Kerr said.
“Equities have followed suit, with one-month realized volatility in key indexes falling to levels not seen since June of last year.”

This suggests that investors may be discounting long-term risk or have confidence in corporate earnings to buffer against policy shocks.

What’s Next: Key Economic and Earnings Data on Deck

Investors will turn their attention to several key data points on Thursday:

• Weekly jobless claims
• Unit labor costs and productivity data for Q2

On the earnings front, major reports are expected from:

• Eli Lilly and Warner Bros. Discovery before the opening bell
• Block (formerly Square) and Pinterest after market close

These releases could play a major role in shaping sentiment as investors look for cues on both corporate performance and the resilience of the labor market amid policy tightening.

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While President Trump’s 100% chip tariff has the potential to reshape global supply chains and investor outlooks, market response has so far been measured, buoyed by strong tech earnings, particularly from Apple, and ongoing confidence in U.S. corporate resilience.

As more details on the tariff structure and exemptions become clear, markets will likely respond more decisively. For now, traders remain in a wait-and-see mode, navigating a landscape that’s increasingly defined by policy shifts and geopolitical calculations.

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