U.S. stock markets are experiencing increased volatility as President Trump’s latest trade deadlines pass and significant new tariffs come into effect. The administration has implemented a sweeping 100% tariff on imported semiconductors, exempting only those produced within the United States. The move is designed to spur domestic manufacturing, but market reactions have been mixed.

Major indices closed higher on Wednesday, driven in part by optimistic corporate earnings and growing anticipation of a Federal Reserve rate cut in September. The Dow climbed 0.18%, the S&P 500 was up 0.73%, and the Nasdaq led with a 1.21% gain, buoyed by technology stocks and a notable rebound from companies like Apple. Apple surged more than 3% in after-hours trading after committing to invest an additional $100 billion in U.S. suppliers over the next four years, following a strong performance during the regular session.

Beneath the headline gains, investors are grappling with conflicting economic signals. While stock prices climbed, weak labor data revealed that job growth over the past three months has averaged just 35,000—much lower than expected—stoking concerns that the economy remains fragile. Analysts warn that combined sluggishness in consumer spending, housing, and manufacturing points to a broader economic slowdown. According to some economists, the U.S. is now “on the precipice of recession,” with market sentiment oscillating between hopes for monetary policy support and anxiety over trade headwinds.

In addition to the semi tariffs, President Trump introduced a 25% tariff on Indian imports as a response to India’s ongoing purchases of Russian oil, escalating trade friction on multiple fronts. The outlook for the coming weeks remains uncertain, with investors focusing on upcoming corporate earnings, shifts in Fed policy, and the potential for further trade escalation. The interplay between geopolitics and macroeconomic data will likely remain the central force behind market moves in the near term.