Bloomberg Technology: AI Fuels Stocks Despite Tariffs

US technology stocks have rallied despite new tariffs imposed by the US on Chinese companies, including TSMC. This comes as AI stocks continue to perform well, with the top 100 Gen AI apps list showing market stabilization. However, US astronomers have warned that research cuts could be a gift to China, as the country continues to invest heavily in space exploration.

US technology stocks have shown remarkable resilience in the face of new tariffs imposed by the US on Chinese companies, including Taiwan Semiconductor Manufacturing Company (TSMC). This resilience comes despite the uncertainty surrounding the Trump administration's tariff policies, which have been a source of market volatility [1].

The recent federal appeals court ruling that declared most of President Trump's sweeping tariffs illegal has added a layer of uncertainty to trade policy [1]. However, the tariffs on steel and aluminum remain unaffected, and the Trump administration has a backup plan to maintain its tariff agenda if the Supreme Court does not uphold the use of emergency powers [1].

Despite the tariff uncertainty, AI stocks have continued to perform well. The top 100 Gen AI apps list shows market stabilization, reflecting the growing demand for artificial intelligence solutions [2]. This demand is driven by the increasing adoption of AI in various industries, including cybersecurity, healthcare, and finance.

However, US astronomers have raised concerns about potential research cuts in space exploration. The US has been investing heavily in space technology, but the country's continued investment in AI and other technologies could be seen as a gift to China, which is also heavily investing in space exploration [2].

The US technology sector's resilience is a testament to the sector's strong fundamentals and the demand for technology solutions. The AI sector's performance highlights the growing importance of AI in various industries. However, the space exploration concerns underscore the need for continued investment in research and development to maintain the US's competitive edge in the global market.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UP155:0-us-court-ruling-on-trump-s-tariffs-fuels-market-uncertainty/
[2] https://www.marketbeat.com/instant-alerts/filing-rafferty-asset-management-llc-sells-38998-shares-of-gen-digital-inc-gen-2025-08-30/