[New York Stock Exchange] S&P, Nasdaq Hit New Highs Despite Trump Tariff Threats... Nvidia Surpasses $4 Trillion Market Cap

Despite 50% Tariffs on Copper and Brazil, Market Remains Unfazed
S&P and Nasdaq Set New Record Highs for Second Consecutive Day
Nvidia Surpasses $4 Trillion Market Cap at Closing Price
Initial Jobless Claims Fall to 227,000, Below Expectations

All three major indexes on the New York Stock Exchange closed higher on July 10 (local time). Despite turbulent tariff policies, investors remained unfazed, with both the S&P 500 and Nasdaq indexes setting new all-time highs for the second consecutive day. Nvidia, the leading artificial intelligence (AI) stock, surpassed a $4 trillion market capitalization at the closing price.

UPI Yonhap News

On this day, the blue-chip Dow Jones Industrial Average ended the session at 44,650.64, up 192.34 points (0.43%) from the previous trading day. The large-cap S&P 500 rose 17.2 points (0.27%) to close at 6,280.46, while the tech-heavy Nasdaq gained 19.33 points (0.09%) to finish at 20,630.67, with both indexes breaking all-time records for the second day in a row.

By stock, Nvidia climbed 0.75%. After becoming the first publicly listed company in the world to surpass a $4 trillion market cap during intraday trading the previous day, Nvidia closed above the $4 trillion mark for the first time. With CEO Jensen Huang scheduled to visit China on July 16 to attend the Beijing International Supply Chain Expo, the market is closely watching whether the company will launch AI chips exclusively for China, which it has reportedly prepared to circumvent U.S. export controls. Delta Air Lines soared 12.08% on stronger-than-expected second-quarter earnings. Tesla jumped 4.73%. Apple rose 0.6%, while Microsoft (MS) slipped 0.4%.

Although President Donald Trump has unleashed a barrage of tariff policies, the market appears increasingly desensitized to tariff risks. The previous day, President Trump announced that a 50% itemized tariff on copper imports would take effect on August 1. He also sent letters to eight countries, including Brazil, outlining reciprocal tariff rates. For Brazil, he notified a 50% tariff rate, a sharp increase from 10% in early April. As a result, the number of trading partners that have received tariff letters from President Trump has risen to 22, including South Korea.

Despite mounting tensions over trade between the U.S. and major trading partners, investors have shown little reaction, with the S&P 500 and Nasdaq indexes continuing to hit record highs.

Mike Dickson, Head of Research and Quantitative Strategy at Horizon Investments, said, "Given all the uncertainty surrounding tariffs and the new (tariff reprieve) deadlines, it's almost unbelievable that valuations are higher than at the start of the year," adding, "The market has become extremely desensitized to all of this." He went on to say, "I think there is a reason for that," effectively citing President Trump's unpredictable tariff policies as the cause.

Meanwhile, employment data released in the morning was unexpectedly strong. According to the Department of Labor, initial jobless claims in the U.S. for the week of June 29 to July 5 totaled 227,000, a decrease of 5,000 from the previous week. This figure was 9,000 below expert forecasts of 236,000. Continuing claims for unemployment benefits for the week of June 22 to 28 came in at 1,965,000, up 10,000 from the previous week (1,955,000) but 15,000 below market expectations (1,980,000). Despite concerns that tariff policies could slow the economy, the labor market remains more robust than anticipated.

AFP Yonhap News

Amid these developments, President Trump reiterated his call for the Federal Reserve (Fed) to cut interest rates, claiming that his tariff policies are driving U.S. economic strength. Posting on his own social media platform, Truth Social, he wrote, "Since Trump's tariffs, Nvidia is up 47%. Tech stocks, industrial stocks, and the Nasdaq index have reached all-time highs, and cryptocurrencies have gone through the roof." He added, "The U.S. is collecting hundreds of billions of dollars in tariff revenue. America is back," asserting, "The Fed should quickly cut rates to reflect this strength." He was especially critical of the Fed for hesitating to cut rates due to inflation concerns, emphatically stating, "There is no inflation."

U.S. Treasury yields remained firm. The 10-year U.S. Treasury yield, the global benchmark for bond rates, stood at 4.34%, while the 2-year yield, which is sensitive to monetary policy, was at 3.87%, both hovering around the previous day's levels.