How did the markets perform today?
- Dow Jones Industrial Average rose 55 points, or 0.1%, staging a mild recovery after two straight days of losses.
- The S&P 500 advanced 0.3%, while the Nasdaq Composite gained 0.6%, hitting a new all-time intraday high of 20,645.41.
Why did the Dow Jones rebound despite recent tariff concerns?
The Dow rose 153 points, or 0.4%, to break its short losing streak. The S&P 500 gained 0.5%, while the Nasdaq Composite climbed 0.8%, signaling broader market optimism despite ongoing global trade concerns. This rally came even as President Trump held firm on his planned tariffs ranging between 25% and 40% on countries like Japan and South Korea, set to begin August 1. In addition, Trump announced a 50% duty on copper imports and floated the idea of a massive 200% tariff on imported pharmaceuticals, though he indicated a grace period of a year to a year and a half for that measure to kick in.
Market analysts believe the rally suggests investors aren’t reacting in panic to these policy moves — at least not yet.
Key market movers today:
- Nvidia (+2%) reached a historic $4 trillion valuation, fueling a tech surge
- Stocks like Boeing (+3.6%) and Merck (+2.9%) provided a nice boost to the Dow
- Despite President Trump’s looming tariffs—25–40% on various nations (starting Aug 1), 50% on copper, and up to 200% on pharmaceuticals—markets are holding steady, as investors bet on possible deals
- Attention now turns to Fed minutes (due Thursday) for cues on rate policy and next steps.
Market Overview: What’s Moving the Numbers?
- Dow Jones Industrial Average (via DIA) is trading around $443, up slightly from the previous close
- S&P 500 (SPY) is near $622.50, with modest gains today.
- Nasdaq‑100/QQQ is at approximately $554.50, up as tech stocks rally.
- Technology‑sector leader XLK trades near $256.90, showing solid strength in the tech space
How did Nvidia lead the market to a $4 trillion milestone?
Nvidia’s rise has been nothing short of historic. On Wednesday, its shares rose 2%, pushing its total market value above $4 trillion — the first company to ever reach that milestone.
Fueled by relentless demand for AI chips and enterprise computing systems, Nvidia continues to dominate headlines and investor interest. Other tech giants like Meta Platforms, Microsoft, and Alphabet also saw gains, reflecting renewed momentum in the AI and semiconductor sectors.
This surge in high-growth technology names has given markets a buffer against broader economic concerns — including interest rate decisions and international trade developments.
What’s going on with Trump’s new tariffs?
President Donald Trump reaffirmed his aggressive tariff strategy, confirming on Truth Social that no extensions would be granted for duties on nations like Japan and South Korea. The new rates, ranging from 25% to 40%, are set to begin August 1.
Trump also:
- Announced a 50% tariff on copper imports
- Teased sector-specific tariffs, including a potential 200% duty on pharmaceuticals, though that would come into effect in a year or more
Still, markets largely shrugged off the developments.
“The market is just shrugging these tariff threats off and presuming there’s room for deals,” said Ross Mayfield, investment strategist at Baird. “If the counter were true, we wouldn’t be anywhere near all-time highs.”
What’s happening with copper prices?
U.S. copper prices surged, with Comex futures now trading at a record $2,600-per-ton premium over London Metal Exchange (LME) prices. The spike came after Trump’s copper tariff announcement, with analysts warning of rising costs across sectors, from home appliances to infrastructure projects.
UnitedHealth stock drops amid DOJ probe
UnitedHealth shares fell nearly 3% after a Wall Street Journal report revealed that the Department of Justice is questioning former employees over Medicare billing practices. The probe focuses on the company’s method of documenting lucrative diagnoses and the use of in-home visits to boost reimbursement rates.
Which stocks are making big moves?
- Starbucks rose almost 2% following reports of a potential stake sale in Starbucks China valued at up to $10 billion
- AES jumped 14% on news it’s exploring a potential sale amid interest from firms like BlackRock and Brookfield
- Verona Pharma surged 20% after Merck agreed to acquire the company in a $10 billion deal
T-Mobile downgraded by KeyBanc
T-Mobile stock dropped 1.5% after KeyBanc Capital Markets downgraded the telecom giant to “underweight.” Analysts cited slowing free cash flow and increasing capital spending, along with a valuation premium versus peers.
Are investors ignoring Trump’s escalating trade tariffs?
It appears that markets are brushing off the immediate impact of President Trump’s tariff threats — at least for now. On Tuesday, Trump confirmed via Truth Social that no changes or extensions would be made to his tariff plan. But he also noted some flexibility, leaving room for potential negotiations.
Ross Mayfield, investment strategist at Baird, told CNBC:
“The market is just shrugging these tariff
FAQs:
Q1: Why did the Dow Jones go up after Nvidia’s $4 trillion milestone?
Because Nvidia’s market cap surge boosted tech stocks and investor confidence.
Q2: What tariffs did Trump announce recently?
Trump announced tariffs up to 200% on pharma and 50% on copper imports.
