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US stocks edged higher on Thursday as President Trump’s sweeping tariffs hit dozens of US trade partners after his self-imposed deadline for countries to strike deals expired. At the same time, Trump’s hint of a carveout for coming duties on semiconductors boosted tech for a second consecutive day.
The Dow Jones Industrial Average (^DJI) gained 0.6%, while the S&P 500 (^GSPC) was up 0.5%. The tech-heavy Nasdaq (^IXIC) rose 0.8%.
Trump’s deadline for trade deals landed at 12:01 a.m. ET on Thursday. Imports from nearly 200 countries now face duties ranging from 10% to 50%, and the overall average effective tariff rate is projected to jump to 18.3%.
Read more: The latest on Trump’s tariffs
Apple (AAPL) shares climbed Thursday in premarket trading as Trump and CEO Tim Cook announced the company would make a $100 billion investment in the US. As part of the deal, Apple will manufacture the cover glasses for iPhones and Apple Watches in Kentucky.
The president also revealed at the press conference that he plans to eventually set a 100% tariff on semiconductors. Companies like Apple that commit to building in the US, however, will be exempt from the tariff, he said.
Airbnb (ABNB), DoorDash (DASH), and Lyft (LYFT) reported earnings after the bell. DoorDash shares jumped premarket on an upbeat forecast driven by resilient delivery demand. Airbnb and Lyft, meanwhile, fell on disappointing guidance.
Also on Thursday, 1.974 million continuing claims for unemployment benefits were filed, reaching their highest level since November 2021. The state of the labor market is in high focus following a disappointing July jobs report and downbeat revisions to the May and June jobs reports.
LIVE 12 updates
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Chip stocks surge as Trump points to tariff exemptions for chipmakers
Chip stocks climbed on Thursday after President Trump said he’ll exempt companies from his planned 100% semiconductor tariffs if they are making or beginning to make their chips in the US.
Nvidia (NVDA) rose more than 2%, while Broadcom (AVGO) jumped 1.7% and Micron (MU) rose 3.4%.
Most advanced chips are produced by contract chip manufacturer TSMC (TSM) in Taiwan, but the company has been building out its capacity in Arizona, exempting it from Trump’s tariffs. The company’s US-listed shares soared nearly 7% Thursday morning, hitting a record high.
So far, Nvidia has committed to producing $500 billion of AI infrastructure in the US. Micron made a similar $200 billion commitment.
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Stocks move higher at the open
US stocks rose at the open on Thursday as President Trump hinted at a carveout for coming tariffs on semiconductors, boosting tech for a second day, just as his tariffs hit dozens of US trading partners.
The tech-heavy Nasdaq Composite (^IXIC) rose 0.8%. The Dow Jones Industrial Average (^DJI) gained 0.6%, while the S&P 500 (^GSPC) was up 0.5%.
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Stocks to watch: Apple, Eli Lilly, Taiwan Semiconductor, Fortinet
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Continuing claims for unemployment benefits hit highest since November 2021
Americans filing for unemployment insurance on an ongoing basis reached the highest level since November 2021 at the end of July.
In the week ending July 26, 1.974 million continuing claims were filed, up from 1.936 million the week prior and the highest level seen since November 2021, according to data from the Department of Labor released Thursday morning. Economists see an increase in continuing claims as a sign that those out of work are taking longer to find new jobs.
Meanwhile, weekly filings for unemployment benefits moved higher to 226,000 in the week ending Aug. 2, up from 221,000 the week prior.
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Intel stock dips as Trump calls for CEO resignation
President Trump on Thursday morning called for the resignation of Intel’s (INTC) CEO Lip‑Bu Tan, who has been at the job since March, saying the executive is “highly conflicted” and should leave his post immediately.
“The CEO of INTEL is highly conflicted and must resign immediately. There is no other solution to this problem. Thank you for your attention to this problem!” wrote Trump on social media.
On Wednesday, Reuters reported that US Republican Sen. Tom Cotton sent a letter to the company’s board raising questions about Tan’s ties to Chinese firms and a recent criminal case involving his former company, Cadence Design (CDNS.O).
Intel stock was down as much as 3% in premarket trading.
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Eli Lilly stock falls despite earnings beat as oral GLP-1 pill results disappoint
Eli Lilly (LLY) stock fell 7% in premarket trading. Although the company’s second quarter earnings topped expectations, the results of a late-stage trial of its highly anticipated oral GLP-1 pill disappointed.
For the quarter, Eli Lilly reported $15.56 billion in revenue, beating Wall Street estimates of $14.69 billion. Earnings per share came in at $6.31, compared to Street expectations of $5.56.
Much of the $10.81 billion in US revenue was driven by strong sales of weight-loss drugs, Mounjaro and Zepbound, which increased 46% in volume, though prices fell 8%.
Yahoo Finance’s Anjalee Khemlani reports:
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Good morning. Here’s what’s happening today.
Economic data: Initial jobless claims (week ending Aug. 2); Nonfarm productivity (second quarter preliminary); Unit labor costs (second quarter preliminary)
Earnings: Block (XYZ), Celsius (CELH), ConocoPhillips (COP), Eli Lilly (LLY), Sony (SONY), SoundHound (SOUN), Pinterest (PINS), Take-Two Interactive (TTWO), Twilio (TWLO), The Trade Desk (TTD), Vistra Energy (VST)
Here are some of the biggest stories you may have missed overnight and early this morning:
Investors are ‘agitated’ by less than perfect earnings
Shopify’s strong quarter shows consumers are ignoring tariffs
Eli Lilly stock falls on GLP-1 pill trial results
Trump’s tariffs hit dozens of countries as trade deadline expires
Trump to sign order easing path for private assets in 401(k)s
Apple leads surge in global tech shares after Trump tariff relief
Trump boasts billions of dollars flowing into US from tariffs
Warner Bros revenue surges on streaming expansion, box-office hits
Trump floats possible tariffs on China for buying Russia oil
TSMC shares surge as Taiwan says firm exempt from Trump tariffs
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Keep an eye on Firefly IPO
Not too far removed from Figma’s (FIG) huge IPO, Firefly will come to market at the Nasdaq later on today. The IPO was upsized, and it’s likely it will come out of the block strong when it opens.
I am not in love with the company’s financials, but it has a host of key deals in place and its technology has proven to work (see trips to moon). And it has a SpaceX (SPAX.PVT) like story to tell at a hot time for markets. Perfectly timed debut.
I am live with Firefly CEO Jason Kim around 11am ET today from the Nasdaq. Tune into Yahoo Finance!
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Apple gains after announcing $100B US investment
Apple stock rose 3% before the bell on Thursday. Yahoo Finance’s technology editor Daniel Howley and Washington correspondent Ben Werschkul outline the latest developments from the Apple investment announcement on Wednesday.
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Sony stock rises as in-demand games and music help allay Trump tariff fears
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TSMC hits record; Taiwan says tech giant exempt from US tariffs
Taiwan Semiconductor Manufacturing Co. (TSM) shares rose 5% in premarket trading on Thursday after announcing it will not have to pay 100% tariff on sales to the US.
Bloomberg News:
