US Stocks Slide as Trump’s Tariffs Take Effect, Tech Sector Shows Resilience

US equities declined across the board as President Trump's sweeping tariffs on nearly 200 countries took effect at 12:01 a.m. ET Thursday. The Dow Jones Industrial Average dropped 0.7%, while the S&P 500 fell 0.4%. The tech-heavy Nasdaq Composite erased early gains to trade slightly below flat, though semiconductor stocks showed strength for a second consecutive day.

Trump's tariff regime imposes duties ranging from 10% to 50%, pushing the average effective rate to 18.6% - the highest level since 1933 according to Yale Budget Lab analysis. However, the President hinted at potential carveouts for semiconductor imports, providing a boost to chipmakers like Nvidia which gained 0.7%.

Apple shares climbed following the announcement of a $100 billion US investment plan that includes manufacturing iPhone components in Kentucky. The tech sector's relative outperformance suggests markets are pricing in selective tariff exemptions for strategic industries.