The definitive results of the session indicate that the Dow Jones Industrial Average rose 0.49%, the tech-heavy Nasdaq advanced 0.94%, setting a new closing record, and the broader S&P 500 increased 0.61%.
“The market is certainly not acting as if it’s fearful of tariffs,” noted Patrick O’Hare, an analyst at Briefing.com, to AFP.
“Obviously, this week’s tariff letters attracted a lot of attention, but the market assumes they are merely negotiation tools and, ultimately, more favorable terms will be reached,” he added.
Following an initial series of letters on Monday, U.S. President Donald Trump today sent eight new letters, including to Brazil—published after Wall Street closed—informing countries affected by tariffs on their goods entering the United States.
Wall Street also “continues to base itself on the fact that economic data simply haven’t confirmed the worst fears about inflation and slowed growth due to tariffs,” emphasized O’Hare.
This situation is also something U.S. central bankers agree on, according to minutes released today on their discussions at the last Federal Reserve (Fed) policy meeting in June.
A minority expressed willingness to cut interest rates at the next Fed meeting, at the end of July.
“The majority” of U.S. central bank leaders believe a rate cut would be “likely appropriate” in 2025, according to the minutes.
“The stock market as a whole will do well with the idea of the Fed cutting rates because inflation remains under control,” anticipated O’Hare.
“This only becomes a problem when the rate cut is driven by a market slowdown or a deterioration in growth that threatens profit prospects,” he insisted.
In the bond market, the yield on the 10-year U.S. treasury note fell sharply to 4.34%, compared to 4.40% at the previous day’s close.
In the business sector, chip giant Nvidia rose 1.80% to $162.88.
Earlier in the session, its stock price exceeded $164, making it the first company in the world to surpass the symbolic $4 trillion market value.
The tech company is driven by investor enthusiasm for artificial intelligence (AI) stocks.
American group Hershey (-4.70%, to $161.95), known among other things for its eponymous chocolate bars and Reese’s peanut butter candies, fell for the second consecutive session after announcing a management change.
Kirk Tanner, former CEO of Wendy’s (-0.53% to $11.23), will take over the company’s leadership.
Energy drink maker Monster Beverages (-3.28% to $59.57) fell after Rothschild & Co. lowered its buy recommendation, partly due to uncertainties over aluminum tariffs, a crucial material in can production.
American coffee giant Starbucks closed in the green (+0.33%, to $95.25), following reports from several media outlets that the company had received about thirty offers from investment firms seeking to acquire a stake in its subsidiary in China, the group’s second-largest market after the United States.
