US stock futures rose on Thursday after President Donald Trump threatened a 100% tariff on semiconductor imports—while announcing broad exemptions for companies manufacturing in the United States or committing large-scale investments domestically. This sparked optimism among investors and led to rallies in major technology and semiconductor shares.
Market Performance:
As of early morning trade, futures tied to the Dow Jones Industrial Average rose 0.48%, S&P 500 futures gained 0.69%, and Nasdaq futures climbed 0.70%. Tech shares led the way, with Apple stock surging over 3% premarket after revealing a $100billion increase in US investment plans, bringing its total commitment to $600billion over the next four years.
Semiconductor manufacturers such as Nvidia, AMD, and Intel rose between 1.2% and 2.5% after confirmation they could avoid the new tariffs by increasing or pledging US-based manufacturing.
Details of the Tariff Threat:
Trump’s announcement outlined a 100% tariff on imported semiconductors, but specifically carved out exemptions for companies relocating or expanding production inside the US. Taiwanese officials confirmed that TSMC, thanks to its Arizona investment, would not be subject to the new duty, sending TSMC shares to record highs in Asian trade.
South Korea also clarified exemptions for Samsung and SK Hynix, both of which already maintain major US facilities or have announced new ones.
Global and Sector Impact:
While optimism prevailed in US and Asian equity markets, some Japanese firms (notably Tokyo Electron and Renesas) declined, reflecting concern that only companies with substantial US manufacturing footprints would escape the tariff.
Broader market momentum was supported by expectations of a Federal Reserve rate cut amid a weakening economic backdrop, as well as robust Q2 earnings for US companies—around 80% of companies were beating analysts’ estimates, lifting investor sentiment.
Ongoing Uncertainty:
Trump’s announcement left open questions about the precise criteria for tariff exemptions and the timeline for their implementation. Analysts caution that full industry impacts will only be clear once detailed regulations are released.
Despite today’s upbeat market reaction, some warn of longer-term risks if global supply chains remain unsettled or if other countries respond with retaliatory measures.
Key Takeaways
US stock futures rose as the market responded positively to tariff exemptions for tech firms with US-based chip production.
Major players—Apple, TSMC, Samsung, SK Hynix, Nvidia, AMD, Intel—were the main beneficiaries, while some foreign tech firms without US facilities faced pressure.
Broader investor optimism was buttressed by strong corporate earnings and the prospect of Federal Reserve interest rate cuts.
The specifics of the tariff plan—and its global consequences—remain to be fully clarified in the coming days.