Stocks Slip from Highs Despite Early Semiconductor Boost

The stock market opened on a strong note today, lifted by optimism surrounding tariff carveouts for domestic semiconductor manufacturers. However, the initial enthusiasm proved short-lived, as broad-based selling pressure emerged mid-session, ultimately dragging the major averages mostly into the red.

Investors welcomed yesterday afternoon’s announcement from President Trump that companies committed to U.S.-based chip production would be exempt from the upcoming 100% semiconductor tariffs. The information technology sector initially surged in response, led by NVIDIA (NVDA), which notched a new intraday record of 183.88 before paring gains to close up 0.75%. The PHLX Semiconductor Index climbed as much as 2.7% early on, finishing the day with a respectable 1.5% gain.

Apple (AAPL) also continued its ascent, rising 3.2% after Tuesday’s news of a $100 billion increase in domestic investment. These tech leaders helped the Nasdaq Composite close up 0.4%, while the S&P 500 briefly came within a whisker of its record closing high before dipping 0.1% by the end of the session. The Dow Jones Industrial Average underperformed, sliding 0.5%.

Despite early strength, the gains quickly unraveled by early afternoon, with nine of the eleven S&P 500 sectors slipping into the red. The technology sector was among the last to retreat but managed to recover late in the session, closing with a modest 0.3% gain thanks to resilience in key megacap names and chipmakers.

Healthcare and financials bore the brunt of the decline, with both sectors shedding more than 1%. Healthcare weakness was driven largely by Eli Lilly (LLY), which tumbled over 14% following the release of weight-loss drug trial data that, while promising, failed to match expectations set by rival Novo Nordisk.

Elsewhere, defensive areas of the market provided a degree of stability. Utilities gained 1.1%, and consumer staples added 0.7%, helping cushion the broader decline.

While today’s pullback lacked a singular catalyst, traders appeared to weigh the onset of higher tariffs for multiple trading partners and the implications of a potentially softening labor market. Weekly jobless claims came in weaker than expected, reinforcing concerns about the economic outlook amid persistent trade uncertainty.

On the policy front, speculation continued to swirl around upcoming appointments to the Federal Reserve Board. Bloomberg reported that Fed Governor Christopher Waller is currently favored by Trump’s advisors to succeed Chair Jerome Powell, though no official nomination has been made. Late in the session, Trump confirmed the appointment of Dr. Stephen Miran to fill the recently vacated seat of Fed Governor Adriana Kugler.

Despite the afternoon pullback, market losses remained relatively modest, and investors will now look to upcoming earnings reports and economic data to gauge the next move.

The FTinvest 11 portfolio started today’s session on a positive note, mirroring early strength in the broader market. However, the initial momentum faded quickly, with the index slipping into negative territory by mid-morning.

Throughout the second half of the day, losses stabilized as FTinvest 11 tracked broadly in line with overall market movements. Hopes for a full recovery, though, were dashed in the final hour of trading, as renewed weakness set in and pulled the index further down.

By the close, FTinvest 11 had declined 0.33%, settling at 813.65 — a modest retreat from recent record levels, but still well within striking distance of its all-time highs.