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Semiconductor Stocks Live: SMH ETF Down 3.7%, Taiwan Semiconductor (Nasdaq: TSM) and Intel (NYSE: INTC) Down Early
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Key Points
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SMH drops 3.75% pre-market as Trump’s 125% China tariffs hit TSM (-1.63%) and Intel (-3.86%).
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Nasdaq futures fall 2.57% after yesterday’s 12.16% rally.
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Live Updates
Live Coverage Has Ended
Overseas Markets Fare Much Better
The Stoxx 600 in Europe climbed 3.7% to close out Thursday—its strongest day in three years—after Trump scaled back tariffs to 10% for 90 days on most U.S. trade partners, boosting the euro to a seven-month peak against the dollar.
Meanwhile, U.S. markets turned bearish again, with the SPY falling roughly 5.6% by 1:31 PM EDT, erasing much of Wednesday’s 9% surge, as economic worries eclipsed the tariff reprieve. European markets rode a wave of relief, while the U.S. saw renewed selling pressure despite steadier Treasuries.
Tariff Update
Despite the 90 day reprieve on reciprocal tariffs, the war is still raging and the stock market is bottoming once again.
Here are the tariffs still in effect:
- 145% duty on all goods from China
- 25% tariffs targeting aluminum, autos, goods from Canada and Mexico not under the United States-Mexico-Canada Agreement
- 10% levy on all other imports
The markets are taking going into the afternoon trading session.
- S&P 500 Down 4.18%
- Dow Jones Down 2.27%
- Nasdaq Composite Down 4.75%
Markets Turn Lower
Markets are reeling as China fires back with 84% tariffs on U.S. goods, retaliating against Trump’s 125% levy on Chinese imports.
The S&P 500 is down 2.64%, the Nasdaq Composite slides 3.72% and the Dow sheds 2.11% as of 10:40 a.m. Economic Policy Advisor Kevin Hassett touted deal offers from 15 countries this morning, hinting at relief from trade uncertainty, but investors aren’t biting yet, fixated on the escalating U.S.-China standoff.
Inflation Falls - For Now
March CPI numbers just came in and inflation fell to 2.4%, which was slightly under the projected 2.5%.
Core CPI inflation fell to 2.8%, which is also below the 3% expectations.
This marks the second month in row the Core CPI declined, but as tariffs hit and inventory needs replenished, CPI numbers are likely to creep higher in the months ahead.
The morning is off to a rocky start for semiconductor stocks, with U.S. stock futures sinking pre-market after Wednesday’s historic rally. The VanEck Semiconductor ETF (SMH), a key barometer for the chip industry, is down 3.75% pre-market as of 8:50 a.m. EDT. The pullback comes as Wall Street digests President Trump’s escalating trade confrontation with China, casting a shadow over the optimism that fueled yesterday’s surge.
Yesterday, markets soared after Trump announced a 90-day pause on many of the largest U.S. tariff hikes targeting trading partners. The move sparked a massive rally, with the Nasdaq Composite jumping 12.16%—one of the biggest single-day gains since World War II. Semiconductor stocks, sensitive to global trade dynamics, rode the wave higher. But this morning, the mood has shifted. Let’s break down where things stand pre-market as of 8:47 a.m. EDT:
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Nasdaq 100 Futures: Down 2.57%
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S&P 500 Futures: Down 2.07%
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Dow Jones Futures: Down 1.55%
Here’s what’s driving the semiconductor space today.
China Trade Escalation Weighs Heavy
Wednesday’s relief came as Trump paused tariff hikes on most trading partners, but the celebration was short-lived. Overnight, focus shifted to his dramatic escalation with China, where tariffs on Chinese imports were jacked up to 125%—a retaliation to Beijing’s own 84% levy on U.S. goods.
For semiconductor firms, heavily reliant on China for manufacturing and market demand, this is a gut punch. The trade war is now squarely between the U.S and China and neither side is looking to grant concessions but continue to double down and escalate tariff threats.
TSM and Intel Feel the Heat
Taiwan Semiconductor (Nasdaq: TSM) and Intel (Nasdaq: INTC) are taking hits pre-market. TSM, the world’s leading contract chipmaker, is down 1.63% pre-market after closing at $158.75 yesterday. The stock’s sensitivity to U.S.-China tensions is no surprise—Taiwan’s proximity to China and its critical role in global chip production make it a lightning rod for trade fallout.
Intel, meanwhile, is faring worse, dropping 3.86% pre-market from its Wednesday close of $21.53. The American chip giant has struggled to regain its footing amid fierce competition and domestic production challenges. Today’s slide underscores how trade uncertainty is piling pressure on an already battered stock.
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