If tariffs are supposed to be bad for stocks, why are tech shares soaring even while the Dow sags? As tariffs took effect, the Dow dropped 0.5% and the S&P 500 edged down 0.08%. Yet the Nasdaq powered to a new record high, propelled by exemptions and investments in leading tech companies.
Apple jumped over 2% premarket and extended a 5% rally after escaping tariffs on India-produced iPhones and semiconductors—in part thanks to a splashy $100 billion US investment pledge (background). Chipmakers like Nvidia, Broadcom, and Micron also surged as Trump signaled carveouts for firms "building in the US."
Not all sectors shared in the rally:
- Toyota slashed profit guidance, warning US tariffs will cost $9.5 billion this year
- Consumer-focused companies like Crocs and e.l.f. Beauty suffered as investors braced for shrinking margins amid rising import costs
- Gold prices climbed 32% year-to-date as investors hedged against volatility and stagflation concerns
Globally, European and Asian stocks held up well as markets saw moderation (not escalation) in US tariff policy and anticipated central bank rate cuts. The big question: Is Wall Street downplaying the long-term risks, or will a strong earnings cycle outweigh trade headwinds?
