Global markets resist Trump's new tariffs, and the Nasdaq hits record highs.
Wall Street extended its positive streak on Thursday despite the implementation of a new round of tariffs imposed by Donald Trump . Meanwhile, the world's major stock markets displayed mixed performance, although with no warning signs. The Nasdaq index, driven by technology stocks, set a new all-time high.
At midday, the Dow Jones Industrial Average was up 0.5%, the S&P 500 was up 0.1%, and the Nasdaq was up 0.6%, surpassing its previous record close.
The new trade measures raised tariffs from 10% to levels between 15% and 41%, affecting several strategic partners. Trump also ordered a 100% tariff increase on semiconductor companies that do not manufacture in the United States and imposed higher tariffs on products from India.
Despite the aggressiveness of the measures, investors seemed to downplay their impact. " Chip tariffs sound terrible in the headlines, but there are so many exemptions that it's not bad news ," said Steve Sosnick , an analyst at Interactive Brokers. In his view, markets continue to interpret the news with a "relentlessly positive" outlook.
In Europe, most major stock indices were higher. Madrid climbed 0.9%, Frankfurt gained 1.2%, Milan 0.8%, and Paris rose 1%. London, on the other hand, fell 0.6%, affected by the Bank of England's decision to cut its benchmark interest rate by 25 basis points , bringing it to 4%, its lowest level in two and a half years.
Despite the imposition of an additional 25% tariff by the United States, the Bombay Stock Exchange managed to reverse its initial losses . The Sensex index closed up 0.10% after having lost more than 400 points, while the Nifty 50 gained 0.09%.
The hardest hit sectors initially were technology and pharmaceuticals, both heavily dependent on trade with the US. However, towards the close, both showed signs of recovery. The Nifty IT index rose 0.87%, driven by rebounds in companies such as Infosys and Tech Mahindra . Meanwhile, the Nifty Pharma index advanced 0.75%, following an improvement in the share prices of key companies in the sector.
Among the notable individual companies, Intel fell 1.3% after Trump demanded the resignation of CEO Lip-Bu Tan, accusing him of maintaining ties to Chinese companies. " The CEO of Intel is deeply distraught and must resign immediately ," he wrote on his Truth Social network.
Republican Senator Tom Cotton had expressed concern about Tan's possible ties to companies associated with the Chinese Communist Party and the People's Liberation Army, causing tension within the company's board.
Meanwhile, Eli Lilly plummeted 13.1% despite reporting solid earnings . The pharmaceutical company presented results for a weight-loss pill that, while promising, failed to match the effects of rival treatments, according to Briefing.com.
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