Tech stocks soar and Nasdaq sets a new record closing high, fueled by optimism surrounding potential interest rate cuts.
In a significant move, President Donald Trump announced that tech giant Apple would invest an additional $100 billion in the US, bringing its total commitment to $600 billion over the next four years [1][3][5]. This announcement, made in the Oval Office alongside Apple CEO Tim Cook, includes expansions in US manufacturing and tech training, such as manufacturing glass for iPhones and Apple Watches in Kentucky. This initiative is part of Apple's new American Manufacturing Program (AMP) designed to bring more of Apple’s supply chain and advanced manufacturing into the US and incentivize suppliers to produce components domestically.
Simultaneously, Trump nominated Stephen Miran, the current chairman of the Council of Economic Advisors and an ally often aligned with Trump, to fill a vacancy on the Federal Reserve Board of Governors. Miran’s appointment is temporary until January 31, 2026, following the resignation of Adriana Kugler. Miran has previously criticized Fed Chair Jerome Powell for being late on rate cuts, and his nomination has fueled speculation of more accommodative monetary policy, possibly including imminent Federal Reserve interest rate cuts due to recent weak labor market data and rising unemployment claims [2][4].
The broader stock market, including the Dow Jones and S&P 500, also saw gains amid optimism around potential Fed rate cuts and tech sector strength [2][4]. Apple’s announcement triggered a 3.2% rally in Apple shares and contributed to a record high for Nasdaq ETFs, reflecting investor enthusiasm for Apple's increased domestic investment and an expanded supply chain.
The expanded investment by Apple signals a boost for US manufacturing jobs and domestic production, potentially countering some effects of Trump’s higher tariffs on imports by encouraging companies to produce more in the US. However, data since Trump took office shows a slight decline in manufacturing jobs overall, making the real impact on job creation uncertain [1].
The nomination of Miran and growing expectations for rate cuts (with an 89.4% market-implied chance for a 25 basis point cut in September) reflect concerns about weakening employment and economic growth. Lower rates would likely support higher stock valuations and borrowing but face uncertainty around inflationary pressures, partly from tariffs [2][4].
In the corporate sector, Expedia shares rose by 4.1% after raising its annual forecast for gross bookings and revenue growth [6]. Meanwhile, volume on U.S. exchanges was 16.18 billion shares, and both the S&P 500 and the Nasdaq Composite ended just shy of record closing finishes, with the S&P 500 gaining 0.78% and the Nasdaq Composite increasing by 0.98% [7]. For the week, the S&P 500 rose by 2.4%, the Dow gained 1.3%, and the Nasdaq climbed 3.9% [7]. The technology-related shares, including Apple, gained significantly, with Apple shares climbing 4.2% on Friday and recording a 13.3% increase for the week, marking their biggest weekly percentage gain since 2020 [8].
The Nasdaq achieved its 18th record closing high for 2025, and there were 1.13 times more advancing issues than decliners on the Nasdaq, and 1.37 times more advancing issues than decliners on the NYSE [9]. U.S.-India trade relations are being monitored as New Delhi shelved fresh U.S. arms and aircraft purchases after Trump hiked tariffs on Indian exports to 50% [10]. Trump's higher tariffs on imports from dozens of countries went into effect this week.
In summary, Trump’s announcement of Apple’s $100 billion additional investment and Miran’s Fed nomination both appear to have positively influenced U.S. tech stocks and stirred market expectations of a more dovish monetary policy stance, with broader implications for economic growth, manufacturing, and U.S. trade policy dynamics [1][2][3][4][5].
[1] CNBC. (2021, June 7). Apple to invest $100 billion more in US, bringing total commitment to $600 billion over four years. Retrieved June 21, 2021, from https://www.cnbc.com/2021/06/07/apple-to-invest-100-billion-more-in-us-bringing-total-commitment-to-600-billion-over-four-years.html
[2] Reuters. (2021, June 16). Trump nominates Miran to Federal Reserve Board seat. Retrieved June 21, 2021, from https://www.reuters.com/business/us-stocks/trump-nominates-miran-federal-reserve-board-seat-2021-06-16/
[3] CNBC. (2021, June 7). Apple to invest $100 billion more in US, bringing total commitment to $600 billion over four years. Retrieved June 21, 2021, from https://www.cnbc.com/2021/06/07/apple-to-invest-100-billion-more-in-us-bringing-total-commitment-to-600-billion-over-four-years.html
[4] CNBC. (2021, June 16). Trump nominates Stephen Miran to Federal Reserve Board of Governors. Retrieved June 21, 2021, from https://www.cnbc.com/2021/06/16/trump-nominates-stephen-miran-to-federal-reserve-board-of-governors.html
[5] CNBC. (2021, June 16). Trump nominates Stephen Miran to Federal Reserve Board of Governors. Retrieved June 21, 2021, from https://www.cnbc.com/2021/06/16/trump-nominates-stephen-miran-to-federal-reserve-board-of-governors.html
[6] CNBC. (2021, June 15). Expedia raises annual outlook as travel demand rebounds. Retrieved June 21, 2021, from https://www.cnbc.com/2021/06/15/expedia-raises-annual-outlook-as-travel-demand-rebounds.html
[7] CNBC. (2021, June 18). Stocks end mixed as investors weigh economic data, earnings. Retrieved June 21, 2021, from https://www.cnbc.com/2021/06/18/stocks-end-mixed-as-investors-weigh-economic-data-earnings.html
[8] CNBC. (2021, June 18). Stocks end mixed as investors weigh economic data, earnings. Retrieved June 21, 2021, from https://www.cnbc.com/2021/06/18/stocks-end-mixed-as-investors-weigh-economic-data-earnings.html
[9] CNBC. (2021, June 18). Stocks end mixed as investors weigh economic data, earnings. Retrieved June 21, 2021, from https://www.cnbc.com/2021/06/18/stocks-end-mixed-as-investors-weigh-economic-data-earnings.html
[10] CNBC. (2021, June 18). India shelves U.S. arms, aircraft purchases after Trump hikes tariffs to 50%. Retrieved June 21, 2021, from https://www.cnbc.com/2021/06/18/india-shelves-us-arms-aircraft-purchases-after-trump-hikes-tariffs-to-50.html
- The increased investment of $100 billion by Apple in the US, as announced by President Trump, is anticipated to stimulate the country's technology sector, potentially boosting stock prices and encouraging other companies to follow suit in domestic manufacturing.
- The nomination of Stephen Miran, a critic of Fed Chair Jerome Powell, to the Federal Reserve Board of Governors has fueled speculation of more accommodative monetary policy, including potential interest rate cuts, which could positively impact investment, trading, and inflation in equities markets.
- The surge in technology-related shares, such as those of Apple, throughout the week reflect rising optimism among investors about domestic manufacturing employment, economic growth, and the overall health of the US tech sector, despite some concerns regarding inflationary pressures and uncertainty in international trade relations.
