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Chip Stocks Climb as Investors Shrug Off Trump's Tariff Threat
7 Aug
Summary
- US equity futures rise despite Trump's 100% tariff threat on chip exports
- Nvidia and Apple shares gain, Broadcom falls in after-hours trading
- Investors optimistic about potential exemptions for companies moving production to US
On August 7th, 2025, US equity-index futures climbed in early trading as investors shrugged off President Donald Trump's threat of a 100% tariff on chip exports to the US. Contracts for the S&P 500 and Nasdaq 100 rose, while a gauge of Asian shares gained 0.3%.
Trump had stated that he would impose a 100% levy on imports of semiconductors, but would provide exemptions for companies moving production back to the US. This announcement triggered some initial risk, but markets ultimately took comfort from the prospect of these exemptions. Shares in Nvidia Corp. and Apple Inc. rose in after-hours trading, while those for Broadcom Inc. fell.
Oil prices also edged higher after a five-day decline, as investors looked beyond US efforts to punish buyers of Russian crude, such as India. The yields on 10-year Treasuries rose two basis points to 4.24%.
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Analysts noted that increasing bets on an interest-rate cut by the Federal Reserve and speculation that corporations will withstand headwinds from trade tariffs and protect their earnings have helped lift stocks to record high levels since their April slump.
