Stock Market Today: Live Updates Amid Trump’s 100% Tariff on Chips Announcement
August 7, 2025 – By Smart Money Mindset Staff
Stock futures showed gains early Thursday as investors grappled with the implications of President Donald Trump’s recent announcement regarding tariffs on semiconductor and chip imports. The president declared a sweeping 100% tariff on imported chips, introducing a significant shift in trade and manufacturing policies but providing exceptions for companies that build their products within the United States.
Market Reaction and Futures Movement
In pre-market trading, futures tied to the Dow Jones Industrial Average rose by approximately 40 points, marking a modest increase of less than 0.1%. Meanwhile, S&P 500 futures climbed 0.26%, and Nasdaq 100 futures gained 0.28%.
This upward movement follows a positive day on Wednesday where the S&P 500 rose about 0.7%, the Nasdaq Composite advanced 1.2%, and the Dow Jones Industrial Average gained roughly 81 points or 0.2%, reflecting continued investor confidence despite tariff-related uncertainties.
Trump’s 100% Chip Tariff Policy
President Trump made the announcement Wednesday evening from the Oval Office, emphasizing a strong stance on semiconductors and chip imports. He stated, “We’re going to be putting a very large tariff on chips and semiconductors.” However, he reassured that companies investing in U.S.-based production would not be subject to these tariffs.
An official statement clarified: “If you’re building in the United States or have committed to build, without question, there will be no charge.” This announcement highlights the administration’s push to boost domestic manufacturing and reduce reliance on foreign semiconductor suppliers.
Impact on Apple and Tech Sector
The news notably boosted Apple shares, which surged nearly 3% in extended trading hours, following a strong 5% gain in the regular session. Earlier this week, Apple committed an additional $100 billion investment in U.S. companies and suppliers over the next four years, building on a $500 billion investment announcement made earlier in February. This aligns with the administration’s objective to incentivize domestic manufacturing.
Broader Market Context and Tariff Developments
The tariff announcement Sunday comes alongside other trade actions taken by the Trump administration. On Wednesday, an additional 25% tariff was imposed on Indian imports, increasing total tariffs to 50%. This follows President Trump’s stated intentions to penalize countries continuing trade with Russia unless a peace deal in Ukraine is achieved by September.
Notwithstanding the recent market gains, the S&P 500 had experienced five losing sessions out of the six trading days prior, and the Dow six negative days out of seven before Wednesday’s rally.
Analyst Insight on Market Volatility
Kristian Kerr, head of macro strategy at LPL Financial, noted that volatility across key asset classes has diminished substantially since tariff tensions peaked in early April. “Volatility across major asset classes is currently sitting at unusually low levels,” Kerr said. “Equities have also followed suit, with one-month realized volatility falling to levels not seen since June of last year.”
Other Market Movers and Earnings to Watch
- Rogers Corporation: Shares jumped 5% after activist investor Starboard Value disclosed a stake exceeding 9%, hinting at potential boardroom changes aimed at improving performance amid weak demand for electric vehicle components.
- DoorDash: The food delivery company’s stock popped 6% after beating earnings consensus, reporting 65 cents per share versus an expected 44 cents and exceeding revenue forecasts at $3.28 billion.
- Duolingo: Surged 14% post-market as the language app provider raised its Q3 revenue outlook and surpassed second-quarter expectations.
- Airbnb: Shares slipped 7% despite strong quarterly earnings, pressured by revenue guidance slightly below analyst expectations.
Investors will also watch earnings reports due Thursday from big names such as Eli Lilly, Warner Bros. Discovery, Block, and Pinterest, along with economic data including weekly jobless claims, unit labor costs, and productivity figures for Q2. —
Oil Prices React to Tariffs
In commodities markets, oil prices rose modestly, with Brent crude hitting $67.56 per barrel, up 1%, and West Texas Intermediate crude increasing 1.13% to $65.06. The tariff announcement is contributing to investor concerns around global supply chains and manufacturing costs.
Upcoming Events and What to Watch
Traders and investors are advised to monitor tariff developments closely as they may significantly affect supply chains, company earnings, and sector performance, particularly in technology and manufacturing. Economic data releases later today could also influence market direction.
Stay tuned to Smart Money Mindset for continued live market coverage and in-depth analysis as these developments unfold.
Sources: CNBC, Reuters, LPL Financial, Wall Street Journal