NASDAQ up, Broader Markets Little Changed
The NASDAQ Composite rose on Thursday, led by gains in Nvidia and Apple, as President Donald Trump unveiled new chip tariffs that include a broad exemption.
The Dow Jones Industrial Average tailed off 258.95 points to pause for lunch Thursday at 43,934.17. The blue-chip index was bogged down by a 2% decline in Caterpillar shares on the heels of the construction and engineering equipment maker warning of the effects of tariffs on its business.
The S&P 500 index dipped 1.23 points to 6,343.83
The NASDAQ held onto gains of 86.79 points to 20,256.22. Nvidia shares rose more than 1%, while Advanced Micro Devices climbed 6%.
Week to date, the S&P 500 has moved up 1.6%, and the NASDAQ has added almost 3%. The 30-stock Dow has advanced nearly 1%.
Apple also ticked up about 3% after the iPhone maker announced plans to spend an additional $100 billion on U.S. companies and suppliers over the next four years. That’s on top of a $500-billion announcement Apple made in February.
Trump announced late Wednesday that there would be a 100% tariff on imported chips, but not for companies that are “building in the United States.” Nvidia shares rose almost 2%, while Advanced Micro Devices climbed 5%.
Supporting sentiment, recent economic data, including weekly jobless claims, signaled the U.S. economy may still be in solid shape. This comes after July’s weaker-than-expected jobs reading rattled the market last week.
Prices for 10-year Treasury were lower Thursday, raising yields to 4.24% from Wednesday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices sank 18 cents to $64.17 U.S. a barrel.
Gold prices surged $21.00 at $3,454.40 U.S. an ounce.
