Nvidia holds above US$4 trillion as AI and airline gains offset global trade tensions and tariff risks
On Thursday, a 50 percent US tariff on imported copper—set to take effect August 1—drove Freeport-McMoRan shares up 3.6 percent and lifted copper prices 1.9 percent to US$5.59 per pound, as reported by CNBC.
The tariff announcement, which also targets Brazilian imports, helped push the S&P 500 and Nasdaq Composite to new all-time highs Thursday, with investors showing little sign of concern over rising trade tensions.
The S&P 500 rose 0.27 percent to close at 6,280.46, while the Nasdaq Composite added 0.09 percent to 20,630.67.
The Dow Jones Industrial Average gained 192 points, or 0.43 percent, finishing at 44,650.64, as reported by BNN Bloomberg.
US President Donald Trump announced the copper tariff late Wednesday, adding a 50 percent levy on Brazil due to what he called a “very unfair trade relationship” and citing the trial of former Brazilian President Jair Bolsonaro.
Brazilian President Luiz Inacio Lula da Silva stated the country would respond in line with its economic reciprocity law. The iShares MSCI Brazil ETF (EWZ) dropped 1.6 percent, as per CNBC.
According to BNN Bloomberg, Delta Air Lines helped propel the rally with a 12 percent surge after beating earnings expectations and offering a more optimistic summer travel forecast than in previous months.
The upbeat results triggered gains across the airline sector: United climbed 14.3 percent, American rose 12.7 percent, JetBlue gained 7.8 percent, and Southwest ended 8.1 percent higher.
Michael Antonelli, market strategist at Baird, noted that “companies are becoming more confident in the range of outcomes for tariffs,” even though tariff announcements continue to fluctuate.
Delta and other major airlines had previously revised their forecasts downward in the spring due to macroeconomic uncertainty linked to Trump’s trade policy.
Technology also played a role in lifting the market.
As per CNBC, Nvidia shares gained 0.8 percent Thursday, remaining above the US$4tn valuation mark reached Wednesday after a 2 percent surge.
That milestone made Nvidia the first public company to cross the US$4tn threshold, supported by continued optimism around artificial intelligence.
Most sectors in the S&P 500 posted gains Thursday, led by consumer-focused companies and banks. JPMorgan and McDonald’s each rose 1.8 percent, according to BNN Bloomberg.
However, technology and communication services lagged, with Autodesk falling 6.9 percent and Netflix down 2.9 percent.
The tariff announcements included more than just Brazil. According to CNBC, Trump had sent letters earlier in the week detailing new import rates for at least 14 other countries including Japan and South Korea.
Additional duties on imports from seven countries were also announced, all set to begin August 1.
Despite the escalations, the markets have recovered from spring losses.
“It is wild to think that valuations are above where we started the year considering all the uncertainties with tariffs,” said Mike Dickson, head of research and quantitative strategies at Horizon Investment.
WK Kellogg shares jumped 30.6 percent after Ferrero agreed to acquire the cereal maker in a deal valued at roughly US$3.1bn.
The deal includes Kellogg’s cereal business in the United States, Canada, and the Caribbean.
The earnings season began with mixed results.
Conagra Brands fell 4.4 percent after earnings and revenue missed expectations, and the company lowered its outlook citing cost pressures from tariffs.
Helen of Troy dropped 22.7 percent and declined to issue a fiscal year 2026 forecast due to tariff uncertainty. Meanwhile, AZZ rose 5.5 percent after surpassing earnings estimates.
According to FactSet data cited by BNN Bloomberg, analysts project five percent growth in second-quarter earnings for S&P 500 companies—the slowest pace since Q4 2023.
US unemployment claims declined last week, remaining in a historically low range, as per the US Labour Department. The 10-year Treasury yield held steady at 4.34 percent, while other yields mostly rose.
Canadian markets also moved higher. The S&P/TSX Composite Index climbed 109.98 points to 27,082.30, led by strength in the industrials sector.
The Canadian dollar traded at 73.08 cents US, up slightly from 73.03 cents US the previous day.
Gold prices rose US$4.70 to US$3,325.70 per ounce.
Crude oil prices dropped US$1.81 to settle at US$66.57 per barrel.
European stock indexes ended mixed, and Tokyo’s Nikkei 225 declined 0.4 percent, weighed down by exporter share losses and stalled Japan–US trade negotiations, according to BNN Bloomberg.
