Wall Street Mixed as Tariff News Boosts Apple but Trade Concerns and Sector Losses Weigh
Tech-heavy Nasdaq climbed 73.27 points (0.4%) to 21,242.70, the S&P 500 edged down 5.06 points (0.1%) to 6,340.00 and the Dow fell 224.48 points (0.5%) to 43,968.64.
Wall Street opened strong after President Donald Trump announced a 100% tariff on imported semiconductors and chips, exempting companies manufacturing in the U.S. Apple gained 3.2% as CEO Tim Cook confirmed a $100 billion U.S. investment, but gains faded amid concerns over broader trade policy impacts. Intel fell 3% after Trump urged CEO Lip Bu Tan to resign, calling him highly conflicted.
Labor Department released a report showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended August 2nd. It also said initial jobless claims climbed to 226,000, an increase of 7,000 from the previous week's revised level of 219,000. It also released a separate report showed a significant rebound by labor productivity in the second quarter.
Most of the major sectors ended the day showing only modest moves, pharmaceutical stocks showed a substantial move to the downside on the day, dragging the NYSE Arca Pharmaceutical Index down by 2.1% to its lowest closing level in nearly three months. Eli Lilly (LLY) led the sector lower, plunging by 14.1% despite reporting better than expected second quarter results and raising its full-year guidance. Results from a late-stage trial of the company's obesity pill seemingly disappointed investors.
Oil service stocks was considerably weak amid a decrease by the price of crude oil, with the Philadelphia Oil Service Index falling by 1.4%. Software and transportation stocks was notably weak while semiconductor, utilities and computer hardware stocks turned in strong performances.
Asia-Pacific stocks moved mostly higher. Japan's Nikkei 225 Index advanced by 0.7% while China's Shanghai Composite Index crept up by 0.2%. The major European markets are turning in a mixed performance on the day. While the U.K.'s FTSE 100 Index slid by 0.7%, the French CAC 40 Index jumped by 1.0% and the German DAX Index shot up by 1.1%.
In the bond market, treasuries moved to the downside over the course of the session. Subsequently, the yield on the benchmark ten-year note which moves opposite of its price, rose 2.4 bps to 4.24%.
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Academy Empower your mind, elevate your skills At the end of July, Gov. Mike DeWine of Ohio said Intel 's chief executive was "very, very optimistic" about the company's plans to build multibillion-dollar semiconductor factories in his state. Last week, President Donald Trump attacked the tech executive, and a Republican senator called for an investigation into delays surrounding Intel's massive construction project outside demanded Thursday that Lip-Bu Tan, Intel's new CEO, resign over his past ties to Chinese companies, adding to the woes of a company that DeWine and other senior figures in Ohio's Republican Party had said would help create a manufacturing boom and turn the state into a "Silicon Heartland."To help build its Ohio factories, Intel received commitments worth roughly $1.5 billion in federal funding in recent years, as well as a $2 billion incentive package from the project has been badly delayed, and the chipmaker said this year that the factories would not be operational until at least company's challenges in Ohio highlight the risks that federal and state officials took when they financially backed Intel, a once-powerful force in chip manufacturing, an industry now dominated by the Taiwan Semiconductor Manufacturing situation is also indicative of the struggles the Trump administration will face as it tries -- through the pressure of tariffs and threats from the White House -- to shift the bulk of semiconductor production to the United States from Asia. When the Biden administration offered financial incentives through the CHIPS Act, Intel was one of the few American companies that it made sense to whether by stick or carrot, forcing this transition could prove extraordinarily difficult, as the delays around the Ohio project demonstrate."It's pretty obvious that Intel has failed to meet the commitments it made to the people of Ohio," Sen. Bernie Moreno, R-Ohio, wrote on social media Thursday. "Now we find out its new CEO is deeply conflicted with ties to the CCP," he said, referring to the Chinese Communist Party."The CEO must immediately resign, the project completed, and a fraud investigation should be initiated by Ohio," Moreno factories are extremely expensive and complicated to build. Intel has struggled to find enough customers to stay afloat as it poured money into construction. 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He added that the company had already invested $7 billion in the construction project in Ohio, more than three times the amount of the state's incentive package, which involves some tax credits that have yet to be paid incentive package is tied to job creation by the end of 2028, so the earliest that the state would attempt to claw back any money is 2029, Tierney for the allegations against Tan, he said, DeWine is concerned about any allegation of involvement with the Chinese Communist Party that is detrimental to the national interest but is not rushing to judgment."We don't have all the facts, and we will need to see what facts come out," Tierney stakes are high for Intel and Ohio. Semiconductor chips, which are used in everything from cellphones to fighter jets, have recently become a particular focus for Trump, as they were for former President Joe Biden. 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