Major Indexes Post Modest Gains Amid Ongoing Trade Policy Uncertainty
The major U.S. stock indexes edged higher in midday trading on Wednesday, July 9th, 2025, as investors continued to monitor developments in U.S. trade policy while celebrating a historic milestone for AI chipmaker Nvidia. The S&P 500 rose 0.3%, the tech-heavy Nasdaq Composite gained 0.5%, and the Dow Jones Industrial Average added 0.2% by midday, though all three indexes remained below their session highs.
Market sentiment has been cautious this week following President Donald Trump’s recent tariff announcements targeting at least 14 countries. However, investors appeared somewhat reassured after Trump indicated that the new August 1st tariff deadline is “not 100% firm” and that he remains open to negotiations with affected countries.
“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,” Trivariate Research CEO Adam Parker commented on CNBC’s “Closing Bell.”
Nvidia Makes History as First Company to Reach $4 Trillion Market Cap
In a landmark achievement for the markets today, Nvidia (NVDA) became the first public company in the world to reach a market capitalization of $4 trillion. Shares of the leading chip designer rose as much as 2.5% to an all-time high of $164, benefiting from the ongoing surge in demand for artificial intelligence technologies.
“It’s a continuing reflection of investors wanting to be on the right side of the AI movement, and Nvidia is kind of the golden child for AI investment,” said Chuck Carlson, Chief Executive Officer at Horizon Investment Services. “The company is still putting up growth numbers. It clearly is the leader in that field, and it’s a must-have if you want exposure to AI and generative AI and accelerated computing.”
Nvidia’s achievement underscores Wall Street’s confidence in the rapid growth of AI, with the company’s high-performance chips forming the backbone of this technological revolution. The stock has rebounded approximately 74% from its lows in April when global markets were jolted by President Trump’s initial tariff announcements.
Other Notable Stock Movements and Corporate News
Tesla (TSLA) shares rebounded 2% in today’s midday market update after losing 6.1% in the previous session. The electric vehicle maker had faced pressure earlier in the week following news of CEO Elon Musk launching a political party.
In merger and acquisition news, U.S.-listed shares of Verona Pharma (VRNA) jumped in premarket trading after pharmaceutical giant Merck (MRK) agreed to purchase the company for $10 billion. Additionally, AES (AES) shares soared on reports that the renewable energy provider is exploring a potential sale.
Starbucks (SBUX) is reportedly attracting offers for a potential stake sale in its Chinese operations that value the unit at up to $10 billion, according to market sources familiar with the matter.
Core Scientific stock extended gains on reported acquisition talks with AI infrastructure provider CoreWeave, highlighting the continued consolidation in the AI computing space.
Upcoming Market Events and Economic Data
Investors are looking ahead to several key economic data releases and corporate earnings reports in the coming days. The Bureau of Labor Statistics will release the Consumer Price Index (CPI) for June 2025 on Tuesday, July 15th, followed by the Producer Price Index (PPI) on Wednesday, July 16th. These inflation indicators will be closely watched for their potential impact on Federal Reserve policy decisions.
The earnings season kicks into high gear next week with major financial institutions reporting their second-quarter results. JPMorgan Chase (JPM), BlackRock (BLK), Citigroup (C), and Wells Fargo (WFC) are all scheduled to report before the market opens on Tuesday, July 15th.
Before that, several notable companies will report earnings this week, including Delta Air Lines (DAL) and Conagra Foods (CAG) on Thursday, July 10th. Technology services giant Tata Consultancy (TCS) is also set to report its quarterly results on Thursday.
Global Market Reactions and Trade Policy Developments
Asian markets showed mixed reactions to the latest U.S. tariff threats. Japan’s Nikkei 225 ended 0.26% higher at 39,688.81, while South Korea’s Kospi increased by 1.81% to close at 3,114.95. Mainland China’s CSI 300 index advanced 0.84% to end at 3,998.45, and Hong Kong’s Hang Seng Index increased by 1.09% to 24,148.07.
The European Union is reportedly seeking a trade deal with the Trump administration as other countries face new tariff notices. This development comes as investors prepare for the first U.S. earnings quarter under Trump’s renewed tariff policies.
Market Outlook and Analyst Perspectives
Despite the ongoing uncertainty surrounding U.S. trade policy, many analysts remain cautiously optimistic about the market’s trajectory. “I think it’s just a little bit of selling as we got the highs, and kind of recalibrating before July earnings season,” noted Trivariate Research’s Adam Parker. “But I don’t think this is the sign of a new regime at all.”
Companies have shown some caution in their dividend policies, with S&P Dow Jones Indices reporting that dividend net changes for U.S. domestic common stocks rose $7.4 billion in the second quarter of 2025, compared to a $16 billion increase in the year-ago period and a $15.3 billion gain in the first quarter of 2025.
“Dividend growth has continued, but is noticeably slower than had been hoped for, though it is in line with expectations given the economic uncertainties,” said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
As the markets navigate through trade tensions and prepare for the upcoming earnings season, investors will be closely monitoring corporate guidance for signs of how companies are adapting to the evolving economic landscape and potential impacts from new tariff policies.
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.