US stocks open in the green: Nasdaq up 0.3%, Dow Jones surges 140 points

US equities closed higher on Friday, extending weekly gains with the S&P 500 up 2%, Nasdaq 3.2%, and Dow 1.2%. This positive market performance occurred amidst the implementation of new reciprocal tariffs and President Trump's nomination of Stephen Miran, Chair of the Council of Economic Advisors, to the Federal Reserve Board of Governors. Miran's appointment is significant as it places a White House ally on the FOMC, aligning with the administration's push for interest rate cuts, a move largely anticipated by markets for September.

Analysis

US equity markets demonstrated notable resilience, closing the week with broad-based gains despite mixed geopolitical and monetary policy signals. The S&P 500 and Dow Jones posted weekly increases of 2% and 1.2% respectively, while the Nasdaq Composite led with a significant 3.2% advance. This positive performance occurred even as new "reciprocal" tariffs were implemented, suggesting investors are weighing other factors more heavily. A key development was President Trump's clarification that a potential 100% tariff on semiconductors would not affect US-based manufacturers, likely fueling the tech-sector outperformance. Concurrently, the nomination of Stephen Miran, a Trump ally, to the Federal Reserve Board of Governors reinforces the administration's push for lower interest rates. This move aligns with strong market expectations, where bets on a September rate cut are already at approximately 90%, providing a supportive backdrop for equities. However, the sharp intraday swings on Thursday indicate the market remains highly sensitive to trade policy announcements and underlying political uncertainty.

Key Decisions for Investors

• The nomination of a White House ally to the Fed Board solidifies market expectations for a September rate cut, so investors should monitor confirmation proceedings and Fed communications for any change in this dovish outlook.
• Given the Nasdaq's 3.2% weekly outperformance following tariff relief for US semiconductor firms, consider the continued potential for relative strength in domestic tech, while remaining cautious about broader, unresolved trade risks affecting other sectors.
• Despite the week's gains, significant intraday volatility signals high sensitivity to trade headlines, making it prudent to maintain disciplined risk management to hedge against sudden shifts in market sentiment.