U.S. stocks opened higher on Thursday (August 7) as President Donald Trump's new tariffs on imports from nearly 200 countries took effect. The Dow Jones Industrial Average rose 265 points, or 0.6%, while the S&P 500 gained 0.64%, and the Nasdaq Composite increased by 0.9%. Despite concerns over the tariffs, investors focused on strong corporate earnings and enthusiasm for artificial intelligence investments.
President Trump imposed tariffs ranging from 10% to 50% on imports, with an average effective rate projected to rise to 18.3%. However, Trump hinted at exemptions for semiconductor companies that manufacture in the U.S., boosting tech stocks for the second consecutive day. Yahoo Finance reported that Nvidia shares rose over 2%, while Broadcom and Micron also saw gains.
Apple announced a $100 billion investment in U.S. manufacturing, securing an exemption from the new tariffs. According to CNBC, Apple's shares increased by 3% following the announcement.
The tariffs, which have raised the U.S. effective tariff rate to the highest level since the Great Depression, are part of Trump's strategy to boost domestic production. Treasury Secretary Scott Bessent stated that the administration is focusing on affordability and addressing the cost-of-living crisis in the U.S.
Despite these concerns, the market remains optimistic about the tech sector's potential, particularly with investments in artificial intelligence. Investors are betting on the resilience of the economy, as stocks continue to rise.