NEW YORK (AP) — Stocks are rising on Wall Street Thursday, even as President Donald Trump’s latest tariffs take effect on dozens of countries.
The S&P 500 added 0.6% and is flirting with its record, which was set late last month. The Dow Jones Industrial Average was up 182 points, or 0.4%, after a half hour of trading, and the Nasdaq composite was 1.1% higher.
Worries are still high that Trump’s tariffs are damaging the economy, particularly after last week’s worse-than-expected report on the job market. But hopes for coming cuts to interest rates by the Federal Reserve and a torrent of stronger-than-expected profit reports from big U.S. companies are helping to overshadow the concerns, at least for now. Lower interest rates can give the economy and investment prices a boost, though the downside is that they can also push inflation higher.
The Bank of England cut its main interest rate on Thursday in hopes of bolstering the sluggish U.K. economy.
The U.S. tariffs that took effect Thursday morning were also already well known, as well as lower than what Trump had initially threatened. Some countries are still trying to negotiate down the tax rates on their exports, and continued uncertainty seems to be the only certainty on Wall Street. All the while, the U.S. stock market faces criticism that it’s climbed too far, too fast since hitting a bottom in April and left prices looking too expensive.
The latest reports on the U.S. economy came in mixed, meanwhile, which left Treasury yields relatively stable in the bond market.
One said that slightly more U.S. workers applied for unemployment benefits last week. That could be an indication of rising layoffs, but the number remains within its recent range.
“There is nothing to see here!” according to Carl Weinberg, chief economist at High Frequency Economics. “These are not nearly recession readings.”
A separate report said that productivity for U.S. workers improved by more during the spring than economists expected. That could help the U.S. economy grow without adding more pressure on inflation. And that's particularly important when Trump’s tariffs look set to increase prices for all kinds of things that U.S. households and businesses buy.
On Wall Street, Apple helped lead the market amid hopes that its massive size can help it navigate Trump's economy. Its stock rose 3.1% after its CEO, Tim Cook, joined Trump at the White House on Wednesday to say it’s increasing its investment in U.S. manufacturing by an additional $100 billion over the next four years.
Trump also announced a 100% tariff on imported computer chips, but he added "if you’re building in the United States of America, there’s no charge.”
“Large, cash-rich companies that can afford to build in America will be the ones to benefit the most,” said Brian Jacobsen, chief economist at Annex Wealth Management. “It’s survival of the biggest.”
DoorDash climbed 3% after the food delivery app topped Wall Street’s profit expectations for the latest quarter. It attracted new customers and saw the total number of orders increase.
Duolingo, the language-learning app, soared 31.8% after it crushed Wall Street’s expectations. The company said its subscription revenue grew 46% over the same period last year.
They helped offset a drop for Eli Lilly, which fell 13.9% even though the drugmaker reported a stronger profit for the latest quarter than analysts expected. Analysts said some investors were disappointed with results that Lilly provided for a late-stage study of its potential pill version of the popular weight-loss drug Zepbound.
Intel slipped 1.7% after Trump called for its CEO to resign, while accusing him of being “highly CONFLICTED,” though he gave no evidence.
In stock markets abroad, indexes rose across much of Europe and Asia.
Stocks climbed 0.2% in Shanghai and 0.7% in Hong Kong after China reported that its exports picked up in July, helped by a flurry of shipments as businesses took advantage of a pause in Trump’s tariff war with Beijing.
Japan’s Nikkei 225 rose 0.6%. Toyota Motor’s stock fell after it cut its full-year earnings forecasts largely because of President Donald Trump’s tariffs, but Sony rose after the entertainment and electronics company indicated it’s taking less damage from the tariffs than it had expected.
In the bond market, the yield on the 10-year Treasury remained at 4.22%, where it was late Wednesday.
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AP Business Writers Teresa Cerojano and Matt Ott contributed.
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