Dow futures surged 250 points this morning, but the mood in the market is anything but calm. Investors are grappling with a new wave of tariffs announced by President Trump, most notably a steep 100% levy on imported semiconductors.
The policy is already shaking up supply chains, though companies with plans to expand manufacturing in the US are catching a bit of a break.
Apple, for instance, just unveiled fresh commitments to ramp up domestic production, a move that seems to be cushioning its stock. The rest of the market is clearly on edge, but tech stocks are holding up.
With trade rules changing by the day, no one’s sure how this all plays out, especially for companies deeply tied to global supply chains. Investors are essentially in wait-and-see mode, trying to make sense of what sticks and what turns into political theater.
5 things to know before Wall Street opens today
1. The US slapped a 25% additional tariff on Indian imports, which doubles the total tariffs to 50%. The move is a not-so-subtle shot at India’s ongoing oil trade with Russia. And this probably isn’t a one-off. Word is, more countries could be next.
For investors, it’s yet another twist in an already messy global trade picture, and it’s forcing everyone to stay on their toes.
2. Strong Q2 earnings are still doing most of the heavy lifting for market sentiment. McDonald’s and Arista Networks came in hot, posting solid gains.
But not everyone’s riding the same wave, names like AMD and Snap took a hit after reporting, a reminder that this earnings season isn’t handing out free wins. Stock picking matters right now, big time.
3. Apple just dropped another bombshell, a $100 billion push into US manufacturing, adding to the massive $500 billion it pledged earlier this year.
The market loved it as the stock jumped 5%, and now other big tech players are scrambling to show they’re just as serious about investing at home.
4. Overseas markets are catching a wave. Asian and European equities are pushing higher, riding the momentum from tech’s strong showing on Wall Street and growing buzz around a possible Ukraine ceasefire.
Japan just hit record highs, and the optimism is spilling into other major markets, even with trade tensions still looming in the background.
5. The 2025 rally is still running, but let’s be honest, it’s mostly a mega-cap show. Tech and comms giants like Nvidia, Microsoft, and Meta are doing the heavy lifting.
Growth stocks are still commanding steep premiums, while the broader market looks closer to fair value.
The small caps are still lagging. The gap between what’s working and what’s not is getting wider, and in this kind of market, picking the right sectors isn’t optional.
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