US Equity Indexes Decline as Investors Weigh Chip Tariffs, Jobless Claims

02:02 PM EDT, 08/07/2025 (MT Newswires) -- US equity indexes traded lower after midday Thursday as investors weighed the proposed 100% tariffs on semiconductor imports alongside gains in weekly jobless claims.

The Nasdaq Composite shed 0.2% to 21,135.2, the S&P 500 fell 0.4% to 6,316.4, and the Dow Jones Industrial Average retreated 0.9% to 43,817.7 as the Trump administration's historic punitive import levies on dozens of trade partners came into effect.

Healthcare and financials were the standout decliners intraday, while utilities led the gainers.

President Donald Trump suggested a potential carveout from upcoming semiconductor tariffs, saying companies could avoid the proposed 100% punitive import levy by committing to build manufacturing facilities in the US.

Firms such as Taiwan Semiconductor Manufacturing Company (TSM) and South Korea's Samsung are likely shielded due to their US footprint, so will Apple (AAPL) , following its newly announced $100 billion American Manufacturing Program, and Nvidia (NVDA), which plans to produce up to $500 billion worth of AI infrastructure in the US, according to a news report from CNBC.

Meanwhile, initial jobless claims rose to 226,000 in the week ended Aug. 2 from an upwardly revised 219,000 in the previous week, compared with expectations for 222,000 in a survey compiled by Bloomberg.

Consumer expectations for growth in one-year US inflation rose to 3.1% in July from 3% in the previous month, according to a survey released by the New York Federal Reserve Bank on Thursday. The median inflation expectations growth for three years stood at 3% for the third consecutive month, but accelerated to 2.9% from 2.6% for the five-year ahead period.

Most US Treasury yields rose, with the 10-year yield up 1.2 basis points to 4.24% and the two-year rate advanced 3.1 basis points to 3.73%.

Separately, Trump and Russian President Vladimir Putin have agreed to meet in the "coming days," BBC reported, citing the Kremlin. It follows the US president saying there was a "good chance" he could meet his Russian and Ukrainian counterparts together in person "very soon" to discuss ending the war in Ukraine.

In Federal Reserve news, Governor Christopher Waller is emerging as a top candidate to serve as the central bank's chair among Trump's advisers as they look for a replacement for Jerome Powell, Bloomberg reported, citing people familiar with the matter.

Trump advisers are impressed with Waller's willingness to base policy on forecasting, rather than current data, and his deep knowledge of the Fed system as a whole, the people told Bloomberg.

In company news, Apple (AAPL) expanded its partnership with Corning (GLW) with a new $2.50 billion commitment for the production of all cover glass for iPhones and watches at Corning's manufacturing facility in Harrodsburg, Kentucky. BofA Securities raised Apple's (AAPL) price target to $250 from $240 while maintaining the buy rating on its shares. Shares of Apple (AAPL) jumped 2.8% intraday, the leader on the Dow.

West Texas Intermediate crude oil futures slipped 0.5% to $64.03 a barrel.

Silver futures jumped 1% to $38.28 per ounce.

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