KEY POINTS:
- S&P 500 and Nasdaq Composite closed at all-time highs despite Trump announcing 50% tariffs on copper and Brazil
- Unemployment claims unexpectedly fell to 227,000, beating economists’ forecasts
- Delta Air Lines soared 11% after reinstating full-year profit outlook
- Markets displayed resilience as traders focused on strong corporate earnings over trade uncertainty
- Treasury auction showed solid demand despite concerns about deficits and tariff impacts
U.S. stocks extended their rally to new records Thursday as investors continued to dismiss concerns about escalating trade tensions following President Donald Trump’s announcement of steep new tariffs on copper imports and Brazilian goods.
According to CNBC, the S&P 500 and Nasdaq Composite closed at all-time highs, with the broad index gaining 0.27% to end the day at 6,280.46. The tech-heavy Nasdaq closed up 0.09% to 20,630.67. The Dow Jones Industrial Average added 192 points, or 0.43%, to finish at 44,650.64.
As reported by Bloomberg, relative calm enveloped Wall Street, with stocks rising as traders parsed a batch of corporate outlooks. Treasuries bounced from session lows as a $22 billion sale of 30-year bonds showed appetite for longer-term debt despite concerns about the US deficit and the impacts of tariffs.
Tariff Announcements Fail to Derail Rally
The market’s resilience came despite Trump’s confirmation late Wednesday that a 50% tariff on copper imports would take effect August 1. According to the Washington Post, “America will, once again, build a DOMINANT Copper Industry,” Trump said Wednesday evening on Truth Social.
As reported by CNN, the tariff announcement comes after Trump on February 25 signed an executive action requiring the Commerce Department to assess whether America’s copper imports posed a national security risk. CNBC reported that copper prices rose 2.62%, following Trump’s latest announcement, extending its gains from the previous session when it jumped 13.12% and recorded its best one-day gain since 1989.
Trump also announced a 50% tariff on Brazil, partly in response to the trial of former President Jair Bolsonaro. According to CNBC, the move was also due to the “very unfair trade relationship” with Brazil, Trump added, saying it has been “far from Reciprocal.”
Strong Economic Data Bolsters Confidence
Labor market data provided additional support for the market’s optimism. According to CNBC and corroborated by multiple sources, initial unemployment benefit filings unexpectedly declined last week as the pace of layoffs held low, the Labor Department reported Thursday. Jobless claims totaled a seasonally adjusted 227,000 for the week ending July 5, down 5,000 from the previous period and below the Dow Jones estimate for 238,000.
As reported by Advisor Perspectives, the four-week moving average currently stands at 235,500—down 5,750 from the previous week. However, CNBC noted that continuing claims, which run a week behind, continued to climb. The total increased to 1.97 million, up 10,000 to the highest level since Nov. 13, 2021 as long-term unemployment held higher.
Corporate Earnings Drive Optimism
Several major companies reported strong results that helped lift sentiment. According to CNBC, Delta Air Lines — Shares advanced 11% after the airline reinstated its 2025 profit outlook, and second-quarter revenue and net income exceeded analyst estimates. The carrier reported adjusted earnings per share of $2.10 on revenue of $16.65 billion.
As reported by CNBC, MP Materials — The rare earth miner soared more than 47% after the company announced the Defense Department would buy $400 million in preferred stock.
CNBC also reported that WK Kellogg — The breakfast food company gained 30% after agreeing to a buyout from Italian chocolate maker Ferrero for $23 a share in cash, valuing the Froot Loops maker at $3.1 billion.
Market Breadth and Technical Indicators
The rally showed broad participation across sectors. As reported by Trading Economics, the main stock market index of United States, the US500, rose to 6280 points on July 10, 2025, gaining 0.27% from the previous session. Over the past month, the index has climbed 4.29% and is up 12.46% compared to the same time last year.
According to Investopedia, the S&P 500 and Nasdaq Composite have closed at record highs on four of the past five days, while the Dow is just 0.4% away from setting its first all-time high since December 4. So far in 2025, the S&P 500 and Nasdaq have risen nearly 7%, while the Dow is up 5.4%.
Tariff Timeline and Market Impact
The latest tariff announcements come as traders navigate a complex timeline of trade negotiations. As reported by Breitbart, “TARIFFS WILL START BEING PAID ON AUGUST 1, 2025,” the president posted on Truth Social. “In other words, all money will be due and payable starting AUGUST 1, 2025 — No extensions will be granted.”
According to CNBC, the letters are intended to ratchet up the pressure on U.S. trade partners to come to the table before the Aug. 1 deadline. Multiple countries including Japan, South Korea, Malaysia, and others received formal notifications of new tariff rates ranging from 25% to 40%.
Market Outlook Remains Constructive
Despite the tariff uncertainty, market strategists remain cautiously optimistic. According to Axios, the unemployment rate is 4.1%, a tick below its April level. The publication noted that while tariff concerns dominated headlines three months ago with recession predictions, those dire forecasts have not materialized.
The market’s ability to reach new highs despite ongoing trade tensions suggests investors are focusing more on corporate fundamentals and economic resilience than policy uncertainty. With strong earnings reports continuing to roll in and labor market data remaining healthy, the path of least resistance for stocks appears to remain higher in the near term.
