US stocks open in the green: S&P up 0.5%, Nasdaq surges 0.8%

US equities advanced Thursday, with the S&P 500 gaining 0.5% and the Nasdaq Composite rising 0.8%, primarily driven by President Trump's newly announced tariffs on imported chips that include exemptions for US-based manufacturers. This policy spurred gains in semiconductor stocks, with the VanEck Semiconductor ETF (SMH) jumping 2%, and supported Apple's 3% rise following its commitment to an additional $100 billion in US investments. Investor sentiment was further bolstered by stable weekly jobless claims, indicating a resilient labor market despite some slowing, which helped extend recent equity gains.

Analysis

US equity markets advanced, with the Nasdaq Composite outperforming with a 0.8% gain, driven by a targeted trade policy announcement and specific company news. The primary catalyst was the imposition of a 100% tariff on imported chips, which critically exempts companies with existing or committed US-based manufacturing operations. This policy directly lifted the semiconductor sector, evidenced by the VanEck Semiconductor ETF (SMH) jumping 2% and individual stocks like Advanced Micro Devices and Nvidia gaining 3% and 1% respectively. Apple shares rose 3%, benefiting both from its explicit mention as a beneficiary of the tariff exemption and its own announcement of an additional $100 billion investment in US suppliers. Macroeconomic data provided a supportive backdrop, as weekly jobless claims of 226,000, while slightly above estimates, indicated a stable labor market, helping to assuage concerns from a weak July jobs report. However, the report also highlights underlying investor concerns regarding the reliability of official economic data following the dismissal of the head of the Bureau of Labor Statistics.

Key Decisions for Investors

• Investors should prioritize semiconductor companies with significant US-based manufacturing footprints, as they are directly positioned to benefit from the new tariff exemption policy.
• Given Apple's 3% rally on its investment plans and explicit tariff immunity, it is prudent to re-evaluate its valuation and long-term supply chain advantages.
• Monitor for heightened market volatility tied to ad-hoc trade policy announcements and maintain a cautious stance on the reliability of upcoming US economic data.