US stock session closes on a positive note despite tariff threats

Donald Trump announced plans to impose new tariffs on imported goods, which raised concerns about the potential impact on corporate profits. However, despite the economic instability, the US stock market continued to show positive momentum.

Starting from August 1, new tariffs will be imposed on products from more than ten countries, affecting not only traditional goods but also metallurgical products and pharmaceuticals. Specifically, Trump announced tariffs of 50% on copper imports and 200% on pharmaceutical products. In addition, the president once again expressed dissatisfaction with the high interest rate set by the Federal Reserve, stating that the rate was overstated by 3 percentage points, putting extra strain on the country's budget.

Positive market reaction

The US president emphasized that each percentage point added to the base rate increases refinancing costs by $360 billion annually. Following these statements, experts predict that the Federal Reserve will implement two more rate cuts this year, with the first expected in September, according to analysts.

The US stock market continues to be supported by the growth of major companies' stocks.

• Nvidia Corp. shares rose by 1.8%, and at one point, the company’s market capitalization surpassed $4 trillion, becoming the first company in history to achieve such a milestone.
• The market was also influenced by the announcement of Merck & Co.'s acquisition of Verona Pharma for $10 billion, which led to a 2.9% increase in its stock price.
• Starbucks also demonstrated a 0.3% rise, with investors focusing on its Chinese division, which received bids from nearly 30 investment firms interested in buying a stake in the business.
• Tech giants such as Microsoft, Amazon, and Boeing also showed positive results: Microsoft’s stock price increased by 1.4%, Amazon by 1.5%, and Boeing by 3.7%. 

Despite the economic instability, these companies continue to grow steadily, which supports the overall positive market trend.

Decline amid instability: who lost value?

Not all companies were able to avoid a drop in stock prices. Tesla shares fell by 0.7%, and Hershey Co.’s stock dropped by 4.7%. The decline also affected Coca-Cola, Exxon Mobil, and Chevron, which came under pressure due to global economic risks and unstable external factors.

However, analysts assert that the market is finding its balance and is poised for further growth if the Federal Reserve indeed cuts interest rates in the coming months, as expected.

Stock index situation

The trading results were also positive for most indices. The Dow Jones Industrial Average closed the session up by 217.54 points, a 0.5% increase. The Standard & Poor’s 500 grew by 37.74 points, closing at 6263.26 points (+0.6%). The Nasdaq Composite rose by 192.87 points, reaching 20,611.34 points (+0.9%).

Thus, despite news of tariffs and a downward global forecast, the US stock market remains in the positive, showing confident growth amid uncertainty. Experts continue to monitor the situation, waiting for further actions from the Federal Reserve and the market’s response to these measures.