ON Semiconductor Rises Amid Tariff Turmoil as $360M Volume Slumps to 265th Highlighting Liquidity-Driven Gains

On August 8, 2025, ON Semiconductor (ON) traded with a 0.15% increase, despite a 25.17% decline in trading volume to $360 million, ranking 265th in market activity. The stock's performance emerged amid broader uncertainty over U.S. trade policy, as President Trump escalated rhetoric around his controversial tariff regime. Legal challenges to the administration’s authority under the International Emergency Economic Powers Act (IEEPA) remain unresolved, with the Federal Circuit Court reviewing whether emergency powers justify the sweeping 35%-100% duties on imports from over 90 countries.

Trump’s tariff strategy, which includes a 100% levy on semiconductors, has sparked market speculation about supply chain adjustments. While ON Semiconductor’s direct exposure to these policies remains unclear, the sector’s volatility reflects investor concerns over production costs and global trade dynamics. Recent legal scrutiny and economic forecasts suggesting limited job creation from tariffs have further clouded the outlook for manufacturing-linked equities.

Strategic exemptions for U.S.-based production have also influenced market sentiment. For instance, TSMC’s shares rose 5% following assurances it would avoid Trump’s semiconductor tariffs due to its Arizona manufacturing investments. Such carveouts highlight the administration’s focus on incentivizing domestic production, though analysts caution that automation and productivity gains—not tariffs—have driven recent manufacturing output records.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets. The significant outperformance highlights the importance of liquidity dynamics in investment decisions, especially in high-volatility environments, though the approach may not be sustainable for long-term strategies.