US stocks rose on Thursday, led by gains in the technology sector, after President Donald Trump announced new tariffs on imported chips with broad exemptions for companies manufacturing in the United States.
The Dow Jones Industrial Average climbed 226 points, or 0.5%, while the S&P 500 added 0.5%.
The Nasdaq Composite outperformed, rising 0.8%.
Trump said late Wednesday that a 100% tariff would be imposed on imported chips, but companies with existing or committed US-based manufacturing operations would be exempt.
The announcement lifted semiconductor stocks, with Nvidia shares gaining more than 1% and Advanced Micro Devices rising 3%.
The VanEck Semiconductor ETF (SMH) jumped 2%.
Apple also advanced 3% after announcing plans to invest an additional $100 billion in US companies and suppliers over the next four years.
This is in addition to the $500 billion investment plan the company outlined in February.
Speaking from the Oval Office, Trump said a significant tariff would be applied to chips and semiconductors, but companies building or planning to build in the US would not face the new charges.
“The good news for companies like Apple is if you’re building in the United States or have committed to build… there will be no charge,” he said.
Markets appeared to take the new tariff policy in stride. The administration’s broader set of “reciprocal” tariffs went into effect Thursday.
In a post on Truth Social, Trump said the new levies are now bringing “BILLIONS OF DOLLARS IN TARIFFS” into the U.S.
Investor sentiment was also supported by fresh economic data, including weekly jobless claims, which suggested the US economy remains on a stable footing.
This helped offset concerns from last week’s softer-than-expected July jobs report.
The session extended recent gains for equities. For the week so far, the S&P 500 is up 1.7%, the Nasdaq has gained 2.5%, and the Dow has advanced 1.4%.
US jobless claims
The number of Americans filing new claims for unemployment benefits rose slightly last week, indicating that the labor market remains largely stable despite signs of weakening job creation and a longer timeline for laid-off workers to find new employment.
Initial claims for state unemployment benefits increased by 7,000 to a seasonally adjusted 226,000 for the week ended August 2, according to data released Thursday by the Labor Department.
Economists surveyed by Reuters had expected 221,000 claims.
The labor market has shown signs of slowing. Government data released last week revealed job creation in July fell well short of expectations, as uncertainty over President Donald Trump’s tariff policies left businesses hesitant to hire.
Employment figures for the two prior months were also revised down by nearly 260,000 jobs—a downward adjustment that prompted Trump to dismiss the head of the Bureau of Labor Statistics, a move that unsettled investors and economists concerned about the reliability of official economic data.
Despite the softer job growth, the latest unemployment claims data suggests employers are avoiding large-scale layoffs and are instead managing workforce reductions through attrition.
This dynamic has helped maintain a relatively low unemployment rate, which stood at 4.2% in July.
A tightening labor supply, partly due to the White House’s immigration crackdown, is also contributing to the muted rise in joblessness.
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