Stock market today: Dow slides, Nasdaq jumps to record as tariffs kick in, Trump nominates Miran to Fed board

US stocks finished mixed Thursday as President Trump's sweeping tariffs, projected to raise the average effective rate to 18.6%, took effect, prompting a $9.5 billion tariff warning from Toyota. However, the tech-heavy Nasdaq Composite rose to a fresh record, buoyed by Trump's hinted tariff exemptions for US-based chip manufacturing and Apple's announced $100 billion US investment. Market losses were trimmed late in the day following Trump's nomination of Stephen Miran to the Federal Reserve Board, while Eli Lilly shares fell 14% on disappointing oral GLP-1 trial results despite an earnings beat, and continuing unemployment claims reached their highest level since November 2021.

Analysis

The US market displayed a significant divergence, with the tech-heavy Nasdaq Composite reaching a new record high, up 0.4%, while the Dow Jones Industrial Average slipped 0.5%. This split was driven by the implementation of sweeping new tariffs, which are projected to raise the average effective rate to 18.6%, the highest since 1933. The negative impact was immediately quantified by companies like Toyota (TM), which warned of a $9.5 billion hit and slashed profit guidance. In contrast, the technology sector benefited from specific policy carveouts, particularly the prospect of tariff exemptions for semiconductor firms with US-based manufacturing. This spurred gains in Nvidia (NVDA) and a nearly 7% surge in Taiwan Semiconductor (TSM). Apple (AAPL) also climbed following its announcement of a $100 billion investment in the US. Economic undercurrents pointed to a slowdown, with continuing unemployment claims reaching their highest level since November 2021. Meanwhile, company-specific events drove extreme volatility, most notably Eli Lilly (LLY) falling 14% on disappointing oral GLP-1 trial results despite beating second-quarter earnings expectations.

Key Decisions for Investors

• Given the divergent market reaction, investors should scrutinize portfolio exposure to tariff-sensitive industrial and automotive sectors versus technology firms benefiting from specific policy exemptions and domestic investment initiatives.
• The sharp sell-off in Eli Lilly (LLY) despite a strong earnings beat underscores the critical risk of clinical trial outcomes in the biopharma sector, which can overshadow current financial performance.
• The contrasting stock movements of Apple (AAPL) and Intel (INTC) highlight the rising importance of monitoring political developments and executive commentary as a direct catalyst for individual equity performance.
• The rise in continuing jobless claims indicates a weakening labor market, which could increase the likelihood of future Federal Reserve rate cuts, a factor that appeared to support assets like gold during the session.