The broad S&P 500 and Dow Jones Industrial Average were both up about 0.6%, while the tech-focused Nasdaq increased 0.8%.
Many investors are waiting to see how big of a drag tariffs will ultimately prove on the economy — though signs are already beginning to mount that it could be substantial as the job market has slowed and price pressures increase.
Even so, the performance of major indexes is now more closely tied to earnings from large tech companies, who have seen their valuations soar thanks to bets on artificial intelligence. Trump also indicated yesterday that there would be broad exemptions to his plan to set new trade duties on semiconductors, meaning those same tech firms are likely to remain relatively unscathed from higher import taxes on chips.
“Tech stocks have continued to drive a buoyant mood in markets,” Deutsche Bank analyst Peter Siderov wrote in a note to clients today, adding the upbeat move has come “despite Trump outlining a plan for 100% tariffs on semiconductors, with the impact of these mitigated by carveouts.”
