Midday Market Update: Major Indexes Hover Near Flat as Investors Digest Trump’s Tariff Announcements
U.S. stock markets showed signs of stabilization during Tuesday’s midday trading session, as investors assessed President Donald Trump’s latest tariff announcements and their potential impact on global trade. After Monday’s steep selloff that saw the Dow Jones Industrial Average tumble more than 400 points, markets found some footing as traders processed Trump’s comments that the August 1 tariff deadline is “not 100% firm.”
As of midday Tuesday, July 8, 2025, the S&P 500 was trading just above the flatline, while the Nasdaq Composite showed modest gains of 0.2%. The Dow Jones Industrial Average remained slightly negative, down 21 points or less than 0.1%.
This follows Monday’s broad market decline when the Dow fell 0.9% (422.17 points) to close at 44,406.36, the Nasdaq Composite lost 0.9% (188.59 points) to 20,412.52, and the S&P 500 slid 0.8% (49.37 points) to 6,229.98.
Trump’s Tariff Announcements Create Market Uncertainty
The market volatility stems from President Trump’s announcement of new tariffs on 14 countries set to go into effect August 1. The countries facing new import duties include Japan, South Korea, Malaysia, Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Laos, Myanmar, Serbia, South Africa, Thailand, and Tunisia.
Many of these tariffs are similar to or higher than what Trump initially announced in April as part of his “reciprocal” tariff plan. For example, Japan faces a 25% levy, slightly above the 24% rate initially proposed, while Malaysia also received a 25% tariff rate, higher than the previous 24% level.
However, market sentiment improved slightly after Trump indicated late Monday that the new deadline is flexible, stating, “If they call up and they say something a different way, we’re going to be open to that.”
Notable Stock Movements
Several individual stocks are making significant moves today:
Nvidia (NVDA) shares rose 0.6% as the chipmaker approaches a $4 trillion market capitalization milestone.
Tesla (TSLA) rebounded 2% after Monday’s 6.8% plunge, which was triggered by CEO Elon Musk’s announcement that he was forming a new political party called the “America Party.” The political move intensified tensions between Musk and President Trump while raising concerns about leadership focus at a time when Tesla is already dealing with falling deliveries.
SoundHound AI (SOUN) showed strong performance, rising 9.45%, while QuantumScape (QS) gained 14.78% and Moderna (MRNA) increased by 10.97%.
Intel (INTC) shares climbed 5.57% as semiconductor stocks showed resilience despite ongoing trade concerns.
Economic Data and Upcoming Events
Today’s economic calendar includes the release of the NFIB small business optimism index for June and the New York Fed’s 1-year inflation expectations report.
Investors are also monitoring corporate dividend trends. According to S&P Dow Jones Indices, dividend net changes for U.S. domestic common stocks rose $7.4 billion in the second quarter of 2025, significantly lower than the $16 billion increase in the same period last year and the $15.3 billion gain in the first quarter of 2025.
Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, noted that “dividend growth has continued, but is noticeably slower than had been hoped for,” adding that economic uncertainties have capped the size of dividend increases rather than stopping them altogether.
Global Markets React to U.S. Trade Tensions
Asian markets showed mixed reactions to the U.S. tariff announcements. Japan’s Nikkei 225 ended Tuesday 0.26% higher at 39,688.81, while South Korea’s Kospi index increased by 1.81% to close at 3,114.95. Mainland China’s CSI 300 index advanced 0.84% to 3,998.45, and Hong Kong’s Hang Seng Index rose 1.09% to 24,148.07.
In Australia, the S&P/ASX 200 benchmark ended flat at 8,590.70 after the Reserve Bank of Australia unexpectedly maintained interest rates at 3.85%.
Analyst Perspectives on Market Outlook
Market analysts suggest that the current volatility may be more of a recalibration before the July earnings season rather than the beginning of a sustained downturn.
“If you go through the details, I don’t even know if anybody understands the difference between what was announced today, what was there previously, and if it will actually be implemented, and which companies it actually impacts,” said Trivariate Research CEO Adam Parker on CNBC’s “Closing Bell.” He added, “I think it’s just a little bit of selling as we got the highs, and kind of recalibrating before July earnings season. But I don’t think this is the sign of a new regime at all.”
Meanwhile, Goldman Sachs has raised its S&P 500 forecast, now seeing the index reaching 6,600 by year’s end, suggesting confidence in the market’s longer-term prospects despite current trade tensions.
Looking Ahead: Key Events to Watch
As markets navigate through this period of trade uncertainty, investors will be closely monitoring several key developments:
1. Ongoing trade negotiations before the August 1 tariff implementation date
2. The start of the July earnings season, which could provide insights into how companies are managing amid trade tensions
3. Potential improvements in dividend payouts from major banks following the Federal Reserve’s stress test results
4. Further comments from the Trump administration regarding tariff flexibility and potential trade deals
The markets today reflect a cautious optimism that the worst of the trade tensions may be behind us, with investors now turning their attention to corporate earnings and economic data for further direction.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.