US stocks had a more mixed performance on Thursday as investors digested President Trump’s tariff threats while welcoming Nvidia's significant milestone. The Dow Jones Industrial Average (DJI) gained 0.5%, while the S&P 500 (GSPC) added 0.2%. In contrast, the Nasdaq Composite (IXIC) saw a slight dip of 0.2% after hitting a record high the previous session. The market is in a holding pattern, balancing concerns over trade tariffs with optimism surrounding Nvidia's dominance in the AI space.

Despite concerns about trade wars, stock benchmarks in Asia and South Korea closed higher, demonstrating resilience amid Trump's ongoing tariff threats. Investors now turn their attention to the coming weeks as tariff deadlines approach, with many looking for signs of clarity in US-China trade negotiations.

Market Movers:

  • Delta Air Lines (DAL): +11.5%: Shares surged following a strong earnings report and the reinstatement of its earnings guidance, providing optimism for the airline sector. The company now projects earnings between $5.25 and $6.25 per share for the next quarter, up from earlier uncertainty caused by trade tensions.
  • Nvidia (NVDA): +0.24%: Nvidia fluctuated slightly despite making history as the first company to briefly cross a $4 trillion market cap during intraday trading. The chipmaker remains a market leader in the AI sector, bolstered by its pivotal role in AI infrastructure.
  • Tesla (TSLA): +2.9%: Tesla rebounded 2.9% after its stock dropped earlier in the week, fueled by Elon Musk’s announcement of a new political party. Investors remain focused on the company’s potential despite ongoing controversy surrounding Musk's political moves.
  • WK Kellogg (KLG): +30.5%: Shares soared after Ferrero announced its acquisition of the cereal maker for $3.1 billion. The deal, valued at $23 per share, represents a substantial premium and has sparked significant optimism for Kellogg shareholders.
  • Ramaco Resources (METC): +29.4%: Shares had an upswing after a major discovery of rare earth element deposits at its Brook Mine in Wyoming. The find positions the company as a key player in the rare earths market, which is expected to benefit from growing demand in the US as the country seeks to reduce its dependency on foreign minerals.

Trade Tariffs and Trump’s Threats

The stock market is remaining sensitive to President Trump’s tariffs, with fresh threats against Brazil and other key trading partners. On Wednesday, Trump escalated his warnings by threatening Brazil with a 50% tariff on imports starting in August. These concerns continue to weigh on global markets, though some sectors, including airlines, remain resilient. Investors are now awaiting further details on the status of trade negotiations with China, India, and the EU.

Delta's Strong Earnings Outlook

Delta Air Lines kicked off earnings season with a strong report, pushing airline stocks higher across the board. Delta restored its guidance after a turbulent period and reported strong performance, despite challenges posed by trade uncertainties. The positive sentiment spread to other major US airlines like United Airlines and American Airlines, which saw significant gains after Delta’s upbeat report.

Nvidia's AI Success

Nvidia continues to be a key focus as its stock climbs on the back of strong AI demand. The company’s groundbreaking achievement of surpassing a $4 trillion market cap has fueled further optimism for its role in the AI revolution. With its stock up 21% year-to-date, Nvidia remains a market leader, with investors closely watching its progress as it dominates the AI chip market. However, as the market's focus shifts to AI, the broader tech sector is facing pressures from trade tensions and regulatory scrutiny.

Looking Ahead

As we head into the second half of July, investors will watch for developments on the trade front. The looming tariff deadlines, particularly with China and the EU, will remain a central focus, and further clarity on potential deals could provide much-needed certainty for investors. In addition, the earnings season is just beginning, with Delta setting a positive tone for the airline industry. Nvidia’s continued performance will be scrutinized as it remains a key player in the AI and semiconductor sectors.

The Federal Reserve’s actions regarding interest rates and inflation will also influence market sentiment. While investors are not expecting rate cuts to begin in July, there is growing anticipation that the central bank may ease rates by September, which could support market growth. With trade uncertainties, earnings reports, and economic indicators on the horizon, the market is positioned for a volatile but potentially rewarding second half of the year.