US continued trading higher mid session, with the Nasdaq Composite rising 1.05 percent to 20,650.47, hitting a new all-time high, driven by AI-driven stocks like Nvidia, which briefly reached a $4 trillion valuation.
The S&P 500 gained 0.74 percent to 6,272.94, and the Dow Jones Industrial Average advanced 0.64 percent to 44,517.79, supported by strong corporate earnings and optimism for a US-EU trade deal.
President Donald Trump’s 50 percent tariffs on copper and Brazilian imports, effective August 1, 2025, continued to stir uncertainty. The Brazil tariffs, tied to former President Jair Bolsonaro’s trial and trade imbalances, led to a 1.8 percent drop in the iShares MSCI Brazil ETF (EWZ).
Tariffs on 14 countries, including Japan and South Korea, heightened global trade concerns. Federal Reserve Bank of St. Louis President Alberto Musalem noted tariff-related inflation effects may emerge in Q4 2025 or 2026, with Fed minutes showing a divide on rate cuts.
Initial jobless claims fell to 227,000, beating estimates, but continuing claims hit 1.96 million, the highest since November 2021. Wolfe Research flagged DOGE layoffs as a labor market softener, unlikely to sway Fed policy before September.
Delta Air Lines surged 12 percent on strong Q2 results, WK Kellogg jumped 31 percent on Ferrero’s $3.1 billion acquisition, and Estée Lauder rose 6 percent after a Bank of America buy rating. The SPDR S&P Metals & Mining ETF (XME) hit a 2011 peak, up 4.4 percent, led by MP Materials’ 54 percent gain.
UBS’s July 10 report projects mid-single-digit upside for emerging market equities, highlighting Taiwan, India, China’s tech sector, and Brazil’s valuations.
European Market
European markets closed higher, driven by optimism around potential US-EU trade deal developments despite ongoing tariff uncertainties. The pan-European Stoxx 600 index rose 0.64 percent to 523, with most sectors in positive territory.
The UK’s FTSE 100 gained 0.59 percent to 8,252, hitting a record intraday high, while Germany’s DAX climbed 0.94 percent to 18,479. France’s CAC 40 advanced 0.54 percent to 7,592, and Italy’s FTSE MIB increased 0.78 percent to 34,512. Spain’s IBEX 35 rose 0.65 percent to 11,068. Mining and banking stocks led gains, boosted by record copper prices and trade negotiation hopes, though chocolate maker Barry Callebaut dropped 17 percent after reporting a 6.3 percent sales decline.
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