Author Jakub Hałun
Wall Street Ends Higher as Apple Surge Offsets Tariff Tensions
U.S. stock markets closed higher on Tuesday, buoyed by a sharp rally in Apple shares following news of a major domestic investment plan, just one day before new U.S. tariffs are set to take effect.
Final numbers showed the Dow Jones Industrial Average gained 0.18%, the Nasdaq Composite jumped 1.21%, and the broader S&P 500 rose 0.73%.
“In a booming market, investors temporarily brushed aside trade fluctuations and macroeconomic concerns,” said José Torres of Interactive Brokers.
Tech giant Apple Inc. stole the spotlight, climbing 5.09% to $213.25 after reports — confirmed by a senior White House official to AFP — that the company will boost its planned investments in the U.S. by $100 billion, bringing the total to $600 billion over four years. An official announcement is expected later today, with President Donald Trump in attendance.
"By making a public investment announcement alongside Trump, Apple may be hedging against the risk of additional U.S. tariffs," noted Christopher Low, chief economist at FHN Financial. The company has cited $1.1 billion in tariff-related costs this quarter, following $800 million last quarter.
Low added that Apple’s push is also linked to its lag in the artificial intelligence race, an increasingly strategic segment in the U.S. tech sector. Part of the investment will focus on catching up in that field.
Despite growing protectionism, equity markets remained upbeat. “The current earnings season has been relatively strong, with both profits and forward guidance holding up well,” Low added. “This suggests that companies are still managing to maintain margins despite mounting tariff pressures.”
Markets were largely unaffected by news that the U.S. will impose an additional 25% tariff on Indian goods within 24 hours, citing India’s ongoing purchases of Russian oil. This is on top of the existing 25% tariff already set to take effect Thursday.
Investors seemed to display a degree of tolerance — or habituation — to Trump’s protectionist agenda, Low observed.
Among individual stocks, Advanced Micro Devices (AMD) plunged 6.42% to $163.12 after mixed quarterly results, with particular weakness in its data center segment.
Snap Inc., parent company of Snapchat, fell 17.15% to $7.78, missing estimates on ad revenue and disappointing analysts.
Fast-food chain McDonald’s fared better, climbing 2.98% to $307.66 on Q2 results that met expectations. Revenues were helped by new menu items and targeted promotions aimed at price-sensitive consumers.
As the market digests upcoming tariffs and navigates the global trade outlook, investor sentiment appears resilient — for now.
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KELLY COUTO
