Stocks on Nasdaq set a new closing record, driven by technology sector growth and optimism about interest rate cuts.
In a significant move, tech giant Apple announced an additional $100 billion investment in the U.S., bringing its total commitment to $600 billion over the next four years. This expanded investment aims to boost American manufacturing and supply chains, and launch a new American Manufacturing Program (AMP) to incentivize suppliers and partners to move more advanced manufacturing and component production to the U.S., creating thousands of new American jobs.
The investment supports over 450,000 American jobs and involves expansions in states like Arizona, California, Iowa, Kentucky, Nevada, New York, North Carolina, Oregon, Texas, and Utah. Around two-thirds of the components made in the U.S. are exported globally, indicating Apple's role in both domestic and international supply chains.
The implications for the U.S. stock market are multifaceted. By incentivizing domestic production and supply chains, Apple’s investment may spur growth and stock appreciation in related industrial and technology firms. However, the announcement coincides with President Trump’s threat of a 100% tariff on some overseas semiconductor imports, and Apple's increased U.S. manufacturing presence might help it avoid or mitigate such tariffs, benefiting its cost structure and competitive position.
Investors could view Apple’s large-scale reshoring as a strategic win supporting American jobs and innovation, potentially lifting broader market confidence in the technology sector and manufacturing. Analysts note that the announcement carries a political dimension, but the magnitude of Apple’s commitment is among the largest private investments in U.S. manufacturing in recent years, signaling a significant shift in global supply chain dynamics and technology investment.
Meanwhile, U.S. stocks ended higher on Friday, with the Dow Jones Industrial Average rising by 0.47%. The Nasdaq reached a record closing high for the second consecutive day, increasing by 0.98%. The S&P 500 gained 0.78%, and the S&P 500 technology and communication services indexes led sector gains for the S&P 500, posting record high closes. Apple shares climbed 4.2% on Friday and had a 13.3% increase for the week, marking its biggest weekly percentage gain since 2020.
For the week, the S&P 500 rose by 2.4%, the Dow gained 1.3%, and the Nasdaq climbed 3.9%. Expectations for a rate cut of at least 25 basis points by the Fed at its September meeting stand at 89.4%. On the NYSE, advancing issues outnumbered decliners by a 1.37-to-1 ratio, and on the Nasdaq, 2,442 stocks rose and 2,157 fell, with a 1.13-to-1 ratio of advancing issues to decliners.
The president nominated Council of Economic Advisers Chair Stephen Miran to a short-term board seat at the Federal Reserve. Expedia shares rose by 4.1% after the company raised its annual forecast for gross bookings and revenue growth. The S&P 500 ended just shy of a record closing finish. The Nasdaq reached its 18th record closing high for the year, marking a significant year for the technology sector.
[1] Apple announces $100 billion investment in U.S. manufacturing [2] Apple's $100 billion U.S. manufacturing plan: What it means for the tech giant and the economy [3] Apple's $100 billion U.S. manufacturing plan: How it could reshape tech supply chains [4] Apple's $100 billion U.S. manufacturing plan: What it means for Apple and the tech industry
- The $100 billion investment by Apple in U.S. manufacturing aims to boost American jobs and innovation, potentially impacting the technology sector and manufacturing industry.
- With the $100 billion U.S. manufacturing plan, Apple is set to reshape technology supply chains, possibly affecting global companies that rely on its components.
- The $100 billion U.S. manufacturing investment by Apple could have significant implications for stock markets, particularly in the technology and industrial sectors, as it may spur growth and stock appreciation in related firms.
