Stock market today: S&P 500, Nasdaq clinch records as chip stocks ride AI momentum

Investing.com--The S&P 500 and Nasdaq notched fresh record closing highs Thursday, led by chip stocks on signs of ongoing AI-driven demand, overshadowing ongoing tariff uncertainty.  

At 2:07 p.m. ET, the Dow Jones Industrial Average rose 190 points, or 0.2%, the S&P 500 gained 0.3% to clinch a fresh closing record of 6,280.39, while the NASDAQ Composite notched at second-straight closing record of 20,630.67. 

Chips stocks continue to shine

Chip stocks, up 1%, continued to rack up gains after chipmaker Taiwan Semiconductor Manufacturing (NYSE:TSM) reported a nearly 40% jump in Q2 sales, beating analysts forecasts and pointing to underlying AI-driven demand. 

Advanced Micro Devices Inc (NASDAQ:AMD) was also in the ascendency following an upgrade to buy at HSBC, while rival NVIDIA Corporation (NASDAQ:NVDA) continued to add to gains just a day after its market value jumped above $4 trillion for the first time.

Trump tariff jitters persist amid Brazil tiff

Trump on Wednesday released more letters outlining tariffs against imports from a number of countries, with Brazil among the worst hit.

The U.S. president said he planned to slap a 50% tariff on all imports from the South America giant. The levies, which would come into effect from Aug. 1, were partially a response to Trump’s anger at the perceived mistreatment of former Brazilian President Jair Bolsonaro, his political ally in the region. 

Brazilian President Luiz Inacio Lula da Silva decried the tariff and vowed a proportionate response, sparking some concerns over a trade war between Washington and Brasilia. 

Separately, Trump also announced a 50% tariff on copper, also effective Aug. 1, making good on his threat from earlier in the week.

Jobless claims below expectations

On the economic data slate, last week’s initial jobless claims, the number of individuals filing for unemployment insurance for the first time, came in at 227,000, data released earlier Thursday showed, below the expected 236,000, pointing to a solid labor market.

Minutes from the Fed’s latest gathering in June, released on Wednesday, indicated that only "a couple" of policymakers found it appropriate to consider cutting borrowing costs as soon as this month. The majority of FOMC members still consider a wait-and-see policy as appropriate for future interest rate decisions, amid concern that the tariffs could push up inflationary pressures and weigh on growth.

Trump has repeatedly called on the Fed to cut rates, warning that the U.S. economy could suffer if rates aren’t lowered.

Kellogg acquired by Ferrero 

In the corporate sector, WK Kellogg (NYSE:KLG) stock soared after family-owned Italian candy group Ferrero agreed to acquire the cereal maker for $3.1 billion, or $23 per share.

Fast-food giant McDonald’s Corporation (NYSE:MCD) gained more than 2% after Goldman Sachs upgraded the company to buy from neutral on expectations for increased demand among cash-strapped consumers.

Elsewhere, Delta Air Lines (NYSE:DAL) stock rose strongly has restored its previously-withdrawn full-year guidance, with the company citing "confidence in the business" after it posted record revenue in its June quarter despite the threat of recent tariff-driven headwinds to consumer sentiment.

Ambar Warrick and Peter Nurse contributed to this article