Apple leads rally with $100 billion U.S. investment
U.S. stock index futures rose on Thursday, boosted by a tech-led rally and signs that major firms may avoid the impact of President Donald Trump’s latest semiconductor tariffs.
Apple shares surged 2.9% in premarket trading, after gaining 5.1% the previous day. The gains followed Trump’s announcement that Apple will invest an additional $100 billion in the U.S., raising its total domestic commitment to $600 billion over four years.
Trump also introduced a 100% tariff on semiconductor imports. However, the tariffs will not affect companies that manufacture or plan to manufacture in the U.S. This reassured investors and lifted shares of chipmakers. Nvidia, AMD, and Intel rose between 0.9% and 2.2%.
Broader market outlook and Fed expectations
As of 7:10 a.m. ET:
S&P 500 E-minis rose 39.75 points (0.62%)
Nasdaq 100 E-minis gained 186.25 points (0.8%)
Dow E-minis climbed 246 points (0.56%)
Expectations of rate cuts by the Federal Reserve also supported sentiment. Weak economic data, including July’s payroll report, has led traders to fully price in a September rate cut. Two rate cuts are now expected by year-end, according to CME FedWatch.
Investors are also awaiting the 8:30 a.m. ET release of initial jobless claims data for further insight into the labour market.
Key moves in stocks and Fed developments
Eli Lilly dropped 12.3% after releasing data on its late-stage oral weight-loss drug, despite raising its full-year profit forecast.
DoorDash shares jumped 8.4% after it beat revenue estimates and forecast stronger-than-expected gross merchandise value for the current quarter. Datadog rose 10.4% after its second-quarter results surpassed expectations.
Markets are also focused on President Trump’s expected nomination of an interim replacement for outgoing Fed Governor Adriana Kugler. Analysts anticipate the nominee will lean dovish, potentially supporting further rate cuts. Kugler’s exit leaves a key opening on the Fed’s seven-member board led by Jerome Powell, whose term ends in May 2025.
“Equity markets continue to edge higher as Fed officials are sounding more dovish and global economic activity is resilient,” said Elias Haddad, senior strategist at Brown Brothers Harriman.
with inputs from Reuters
