US Tariffs Impact Chip Stocks; Novo Nordisk's Wegovy Approved

On August 18, 2025, the stock market experienced notable developments, particularly within the semiconductor industry and the pharmaceutical sector.

US Tariffs on Semiconductors Impact Chip Stocks

The semiconductor industry faced significant pressure following President Donald Trump’s announcement of potential tariffs on imported semiconductors, with rates possibly reaching up to 300%. This move aims to bolster domestic manufacturing but has raised concerns about supply chain disruptions and increased production costs. As a result, major chipmakers saw their stock prices decline:

• Advanced Micro Devices, Inc. (AMD) shares fell by 1.9%.
• Broadcom Inc. (AVGO) experienced a 1.6% drop.
• NVIDIA Corporation (NVDA) also saw a decrease of over 1%.

In contrast, Intel Corporation (INTC) shares rose nearly 3%, buoyed by reports suggesting potential benefits from increased U.S. government support through CHIPS Act funding. (nasdaq.com)

Novo Nordisk’s Wegovy Gains FDA Approval

In the pharmaceutical sector, Novo Nordisk received FDA approval for its drug Wegovy to treat metabolic dysfunction-associated steatohepatitis (MASH) in adults with moderate-to-advanced liver fibrosis. This approval addresses a significant health concern, as approximately 22 million people in the U.S. are estimated to live with MASH. Following the announcement, Novo Nordisk’s shares rose more than 4% in premarket trading. (cnbc.com)

Market Overview

Despite these sector-specific movements, major U.S. stock indexes remained relatively stable:

• The S&P 500 dipped slightly by 0.65 points to 6,449.15.
• The Dow Jones Industrial Average decreased by 34.30 points to 44,911.82.
• The Nasdaq Composite edged up by 6.80 points to 21,629.77.

Investors are closely monitoring upcoming corporate earnings reports from major retailers like Walmart, which may provide insights into consumer behavior amid a slowing job market and tariff concerns. Additionally, attention is focused on the Federal Reserve Chair’s upcoming speech, anticipated to offer clues about potential interest rate cuts. (apnews.com)

Conclusion

The stock market on August 18, 2025, reflected a mix of sector-specific developments and broader economic anticipations. The semiconductor industry’s reaction to potential tariffs underscores the sensitivity of global supply chains to policy changes, while Novo Nordisk’s FDA approval highlights the impact of regulatory decisions on pharmaceutical stocks. As the week progresses, investors will continue to watch for corporate earnings and Federal Reserve communications to gauge the market’s direction.