Dow and S&P 500 Rise as Trump Tariffs Take Effect
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- Dow Jones rose 0.7% and the S&P 500 advanced 0.5% on Friday while the Nasdaq Composite hugged the flat line, as Wall Street tried to stabilize after Thursday's megacap tech-led sell-off.
- President Trump's new Section 301 global tariffs took effect overnight, targeting 99.4% of US imports with rates of 10% to 12.5% on the country's top trading partners.
- Brent crude futures dropped 5% to trade below $95 per barrel on Friday, though the international benchmark was still set for a weekly gain after touching $100.
- The Magnificent Seven collectively shed nearly $800 billion in market value on Thursday amid a sell-off sparked by ballooning AI spending concerns.
- Intel (INTC) shares fell 5.85% on Friday despite the chipmaker blowing past Wall Street's earnings expectations in the second quarter.
- The White House exempted some energy products from the new tariffs as markets contend with higher oil prices that threaten to derail progress on inflation.
- S&P Global's flash PMI showed US business activity expanded at its fastest pace in eight months in July, boosted by the World Cup.
Why it matters: The new tariffs cover 99.4% of US imports at rates up to 12.5%, but the energy-product carve-out signals the administration is trying to shield inflation-sensitive sectors from Brent crude that hit $100 this week. Intel's 5.85% drop despite an earnings beat shows the tape is punishing even good news as the Magnificent Seven's $800 billion Thursday wipeout keeps AI-spending anxiety front and center.
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