Futures Pointing To Extended Advance On Wall Street

(RTTNews) - The major U.S. index futures are currently pointing to a higher open on Thursday, with stocks likely to add to the strong gains posted in the previous session.

The upward momentum on Wall Street comes after President Donald Trump announced a 100 percent tariff on imports of semiconductors and chips but said companies that are "building in the United States" would be exempt.

"The good news for companies like Apple is if you're building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge," Trump said.

"So in other words, we'll be putting a tariff on of approximately 100 percent on chips and semiconductors," he added. "But if you're building in the United States of America, there's no charge."

The announcement of the tariff on semiconductors and chips came as Apple (AAPL) CEO Tim Cook joined Trump to confirm the company plans to invest another $100 billion in the U.S.

After helping to lead the markets higher on reports of the investment on Wednesday, shares of Apple are jumping by another 2.8 percent in pre-market trading.

However, shares of Intel (INTC) are tumbling by 3.1 percent in pre-market trading after Trump called on CEO Lip-Bu Tan to resign immediately, calling him "highly conflicted."

After moving mostly higher early in the session, stocks saw further upside over the course of the trading day on Wednesday. The major averages all moved to the upside on the day, with the tech-heavy Nasdaq leading the charge.

The Nasdaq jumped 252.87 points or 1.2 percent to 21,169.42 and the S&P 500 climbed 45.87 points or 0.7 percent to 6,345.06. The narrower Dow posted a more modest gain, rising 81.38 points or 0.2 percent to 44,193.12.

Apple helped to lead the markets higher, with the tech giant surging by 5.1 percent following reports the company will announce plans to invest another $100 billion to expand its U.S. operations during a White House event later in the day.

"Today's announcement with Apple is another win for our manufacturing industry that will simultaneously help reshore the production of critical components to protect America's economic and national security," White House spokesperson Taylor Rogers said in a statement to CNN.

Apple CEO Tim Cook later joined President Donald Trump to announce plans to increase the company's total investment in the U.S. over the next four years to $600 billion.

Earlier in the day, stocks benefitted from a positive reaction to earnings news from companies like McDonald's (MCD), which jumped by 3.0 percent.

The gain by McDonald's came after the fast food giant reported second quarter results that exceeded analyst estimates on both the top and bottom lines.

Shares of Shopify (SHOP) also spiked by 22.0 percent after the e-commerce platform reported better than expected second quarter revenues and provided upbeat third quarter guidance.

On the other hand, shares of Super Micro Computer (SMCI) plunged by 18.3 percent after the server maker reported weaker than expected fiscal fourth quarter results and provided disappointing first quarter guidance.

Social media platform Snap (SNAP) also tumbled by 17.2 percent after reporting second quarter revenues that missed analyst estimates.

Shares of Disney (DIS) also moved to the downside after the entertainment giant reported mixed fiscal third quarter results.

Networking stocks turned in some of the market's best performances on the day, with the NYSE Arca Networking Index surging by 5.6 percent to a record closing high.

Arista Networks (ANET) helped lead the sector higher, soaring by 17.5 percent after reporting better than expected second quarter results and boosting its guidance.

Significant strength was also visible among retail stocks, as reflected by the 2.8 percent jump by the Dow Jones U.S. Retail Index. Gold and airline stocks are turned in strong performances on the day.

On the other hand, pharmaceutical stocks showed a notable move to the downside, dragging the NYSE Arca Pharmaceutical Index down by 1.9 percent.

Commodity, Currency Markets

Crude oil futures are rising $0.33 to $64.68 a barrel after sliding $0.81 to $64.35 a barrel on Wednesday. Meanwhile, after edging down $1.30 to $3,433.40 an ounce in the previous session, gold futures are jumping $31.40 to $3,464.80 an ounce.

On the currency front, the U.S. dollar is trading at 147.22 yen versus the 147.37 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1650 compared to yesterday's $1.1660.

Asia

Asian stocks advanced on Thursday as U.S. President Donald Trump's sweeping new tariffs take effect against dozens of countries. Underlying sentiment was underpinned by Fed rate cut bets, hopes for a Sino-U.S. trade deal and better-than-expected Chinese export data.

The dollar index slipped under the 98 mark as recent weak jobs data revived September rate cut speculation.

Gold rose more than half a percent to hover around $3,390 per ounce levels, while oil prices rose about 1 percent after the Energy Information Administration's (EIA) latest report revealed a bigger than expected drop in crude oil inventories.

China's Shanghai Composite Index edged up by 0.2 percent to 3,639.67 as data showed exports surged 7.2 percent in July in U.S. dollar terms from a year earlier, exceeding expectations ahead of the U.S. tariff truce deadline. Imports jumped 4.1 percent, while economists had predicted a 1.0 percent decrease.

Hong Kong's Hang Seng Index climbed 0.7 percent to 25,081.63, with real estate, EV and tech stocks leading the surge.

Japanese markets advanced on easing tariff concerns and encouraging updates from domestic firms. The Nikkei 225 Index rose 0.7 percent to 41,059.15, while the broader Topix Index settled 0.7 percent higher at 2,987.92.

Financials outperformed, with Mizuho Financial, Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial rising 1-2 percent.

Chip-making equipment maker Tokyo Electron tumbled 2.5 percent to extend losses for a third day running on concerns over a potential slowdown in global chip production as Trump announced plans to impose a tariff of about 100 percent on semiconductor chips imported from countries not producing in America or planning to do so.

Seoul stocks rallied, led by gains in tech and auto stocks after Trade Minister Yeo Han-koo said Korea will be treated as a most favored nation (MFN) under the bilateral tariff deal. The Kospi jumped 0.9 percent to 3,227.68.

Samsung Electronics gained 2.5 percent on news that the chipmaker will manufacture Apple Inc.'s next-generation processor at its foundry in Austin, Texas.

Australian markets ended slightly lower as investors took some profits after two record-high sessions. The benchmark S&P/ASX 200 Index dipped 0.1 percent to 8,831.40, while the broader All Ordinaries Index ended little changed with a negative bias at 9,102.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index finished marginally higher at 12,887.10 amid concerns over newly imposed U.S. tariffs.

Europe

European stocks are turning in a mixed performance on Thursday, with U.K. stocks underperforming after the Bank of England reduced its benchmark interest rate for the fifth time in a year as domestic and geopolitical risks weigh on economic activity.

The Monetary Policy Committee voted 5-4 to cut the bank rate by 25 basis points to 4.00 percent. The fifth cut since last August took the rate to the lowest since early 2023.

In economic news, German exports grew for the first time in three months in June despite falling shipments to the U.S., data from Destatis revealed. Exports advanced 0.8 percent on a monthly basis in June, reversing a fall of 1.4 percent in May.

Separate data revealed that German industrial output decreased 1.9 percent on a monthly basis in June, bigger than May's revised 0.1 percent drop and also worse than economists' forecast of 0.4 percent fall.

Elsewhere, U.K. house prices increased by more-than-expected 0.4 percent in July from June, according to data from the mortgage lender Halifax.

While the U.K.'s FTSE 100 Index is down by 0.8 percent, the French CAC 40 Index is up by 1.1 percent and the German DAX Index is up by 1.6 percent.

A.P. Moller-Maersk shares rallied over 3 percent. The Danish shipping group raised its financial outlook for 2025 after posting strong second-quarter results.

Germany's United Internet declined 1.7 percent after reporting a small rise in first-half profit.

Valneva, a specialty vaccine company, surged 6 percent after the FDA removed its recommended pause on the use of IXCHIQ.

Consumer goods and adhesives maker Henkel climbed 2.2 percent after lifting its FY25 margin forecast.

Defense firm Rheinmetall plunged 5.2 percent after reporting lower-than-expected second-quarter sales.

Technology giant Siemens rose 1.2 percent on posting better-than-expected revenue and order intake in its third quarter results.

Insurer Allianz soared 5.4 percent on posting better-than-expected Q2 earnings and affirming its FY operating profit outlook.

Deutsche Telekom lost 3 percent after reporting weaker second quarter results in its domestic market.

Telecoms group Swisscom advanced 1.5 percent on reporting higher half-year revenue.

British advertising giant WPP gave up 3.7 percent on weak first-half results, with operating profit plunging 48 percent.

Government services firm Serco jumped nearly 8 percent on posting strong half-year results and reaffirming its FY25 forecast.

Hikma slumped nearly 7 percent after the generic drug maker lowered its margin outlook for its injectables unit.

U.S. Economic News

Labor productivity in the U.S. saw a significant rebound in the second quarter of 2025, according to preliminary data released by the Labor Department on Thursday.

The report said labor productivity shot up by 2.4 percent in the second quarter after tumbling by a downwardly revised 1.8 percent in the first quarter.

Economists had expected labor productivity to surge by 2.5 percent compared to the 1.5 percent slump that had been reported for the previous quarter.

The Labor Department also said unit labor costs jumped by 1.6 percent in the second quarter after soaring by an upwardly revised 6.9 percent in the first quarter.

Unit labor costs were expected to increase by 1.5 percent compared to the 6.6 percent spike that had been reported for the previous quarter.

A separate report released by the Labor Department on Thursday showed first-time claims for U.S. unemployment benefits rose by more than expected in the week ended August 2nd.

The Labor Department said initial jobless claims climbed to 226,000, an increase of 7,000 from the previous week's revised level of 219,000.

Economists had expected jobless claims to inch up to 221,000 from the 218,000 originally reported for the previous week.

Meanwhile, the report said the less volatile four-week moving average edged down to 220,750, a decrease of 500 from the previous week's revised average of 221,250.

At 10 am ET, Atlanta Federal Reserve President Raphael Bostic is due to participate in a moderated conversation with World Kinect Corp. (WKC) president and chief financial officer Ira Birns during a virtual fireside chat session with the Florida Institute of CFOs on monetary policy.

The Commerce Department is also scheduled to release its report on wholesale inventories in the month of June at 10 am ET. Wholesale inventories are expected to rise by 0.2 percent in June, unrevised from the preliminary estimate, after falling by 0.3 percent in May.

At 1 pm ET, the Treasury Department is due to announce the results of this month's auction of $25 billion worth of thirty-year bonds.

The Federal Reserve is scheduled to release its report on consumer credit in the month of June at 3 pm ET. Consumer credit is expected to increase by $7.5 billion in June after climbing by $5.1 billion in May.