U.S. stock index futures suggest Wall Street could open modestly higher on Friday, hinting at a possible rebound after a choppy performance in the previous session.

However, overall market activity might remain muted due to the absence of significant economic data releases, potentially leading some investors to stay on the sidelines.

On Thursday, stocks started the session in positive territory but lost momentum throughout the day. The major indices pulled back from their early highs, ultimately closing the session mixed.

The Nasdaq, buoyed by strong tech momentum, extended Wednesday’s rally, climbing 73.27 points or 0.4% to end at 21,242.70. In contrast, the S&P 500 dipped slightly by 5.06 points or 0.1% to finish at 6,340.00, while the Dow Jones Industrial Average slid 224.48 points or 0.5% to 43,968.64.

Markets were initially lifted after former President Donald Trump unveiled a sweeping 100% tariff on imported semiconductors and chips, while exempting firms that manufacture domestically.

“The good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge,” Trump said.

“So in other words, we’ll be putting a tariff on of approximately 100 percent on chips and semiconductors,” he added. “But if you’re building in the United States of America, there’s no charge.”

The announcement coincided with Apple (NASDAQ:AAPL) CEO Tim Cook joining Trump to confirm the company’s intention to invest an additional $100 billion in its U.S. operations.

Following reports of the planned investment, Apple shares helped lead Wednesday’s gains and added another 3.2% on Thursday.

Despite the initial optimism, buying appetite faded as investors processed the broader economic implications of Trump’s escalating trade measures, which include fresh tariffs on numerous countries taking effect today.

Adding to the market pressure was a sharp decline in Intel (NASDAQ:INTC), with its shares falling 3.0% after Trump demanded the resignation of CEO Lip-Bu Tan, labeling him “highly conflicted.”

On the economic front, the Labor Department reported that first-time applications for unemployment benefits increased more than anticipated. Jobless claims rose to 226,000 for the week ending August 2, up by 7,000 from the revised prior-week figure of 219,000. Economists had forecast a smaller increase to 221,000.

Meanwhile, a separate report showed that labor productivity saw a notable rebound in the second quarter, offering a more positive view of the labor market.

Sector-wise, most industries saw only slight movements, but pharmaceutical stocks took a significant hit. The NYSE Arca Pharmaceutical Index sank 2.1%, marking its lowest close in nearly three months. Eli Lilly (NYSE:LLY) led the downturn, plummeting 14.1% despite surpassing Q2 expectations and boosting its full-year forecast. Disappointment around late-stage trial results for its obesity drug appeared to drive the selloff.

Oil services stocks also came under pressure as crude oil prices fell, pushing the Philadelphia Oil Service Index down 1.4%. Software and transportation stocks lagged as well, while gains were seen in semiconductors, utilities, and computer hardware names.

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This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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