Market Update: Major Indexes Post Modest Gains
U.S. stock markets edged higher on Wednesday, July 9, 2025, as investors continued to monitor developments in trade policy while celebrating a historic milestone for tech giant Nvidia. The S&P 500 gained 0.3%, the tech-heavy Nasdaq Composite rose 0.5%, and the Dow Jones Industrial Average added 0.2% in midday trading.
The modest gains come after a two-day losing streak for the benchmark S&P 500, which had hit a series of record highs last week. Market sentiment remains cautious as traders assess the latest tariff announcements from President Donald Trump, who has maintained his stance on implementing new duties beginning August 1.
“The tariff announcement was a reminder that markets are not out of the woods. The White House has not really achieved their goals on trade, and that could be a continued source of volatility,” said Scott Helfstein, Global X head of investment strategy.
Tariff Concerns Continue to Weigh on Markets
President Trump reiterated on Tuesday that there would be no changes or extensions to the tariffs he announced on 14 countries, including Japan and South Korea. The new tariff rates, ranging from 25% to 40%, are set to begin on August 1, creating uncertainty in global markets.
In addition to these broad tariffs, Trump announced a 50% levy on copper imports and hinted at further sector-specific tariffs in the near future. The President also threatened to impose up to 200% tariffs on pharmaceuticals imported into the U.S., though he indicated these would not take effect for “about a year, year and a half.”
The impact of these tariff announcements was felt beyond U.S. markets, with global stocks showing mixed reactions. European stocks rose 0.5% to reach their highest level in almost a month, while Asian markets edged lower. In the commodities market, LME copper slid as much as 2.4% after experiencing a 13% surge on Tuesday.
Nvidia Makes History as First $4 Trillion Company
In a significant milestone for the technology sector, Nvidia (NVDA) became the first company to surpass $4 trillion in market capitalization. The AI chip giant has been a favorite among investors betting on the artificial intelligence boom.
Nvidia shares have gained approximately 22% over the past 12 months, outpacing the performance of other mega-cap tech rivals. Only two other companies—Microsoft (MSFT) and Apple (AAPL)—have market capitalizations above $3 trillion.
The milestone highlights the continued dominance of technology companies in the market, particularly those positioned to benefit from the growing demand for AI infrastructure and capabilities.
Notable Stock Movements and Corporate News
Several individual stocks made significant moves on Wednesday based on corporate developments:
AES Corp. (AES) surged 14% following a report that the renewable energy firm is considering a potential sale amid takeover interest. Infrastructure investors including BlackRock’s (BLK) Global Infrastructure Partners unit and Brookfield Asset Management have reportedly been studying AES as a potential acquisition target.
The power sector has seen substantial interest from acquirers this year as investors bet on increased demand for power to fuel AI and cryptocurrency mining operations. AES has signed deals with several tech firms, including Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN), to provide renewable power for data centers.
In other corporate news, U.S.-listed shares of Verona Pharma (VRNA) jumped in premarket trading after Merck (MRK) agreed to purchase the company for $10 billion.
Starbucks (SBUX) has reportedly attracted offers for a potential stake sale in its Chinese operations that value the unit at up to $10 billion, indicating continued interest in the Chinese consumer market despite economic challenges.
Amazon Founder Continues Stock Sales
In notable insider activity, Amazon founder Jeff Bezos sold nearly three million shares worth $665.8 million over two days in July, according to a Tuesday regulatory filing. This stock sale is part of a previously announced plan that will see Bezos unload up to 25 million shares of Amazon through May 2026.
Bezos, who stepped down as CEO of the company in 2021, also sold $736.7 million in stock during the final days of June. Despite these sales, he still holds more than 900 million shares of Amazon valued at close to $200 billion and remains the largest shareholder of the e-commerce giant.
Looking Ahead: Market Events to Watch
Investors will be closely monitoring the release of the Federal Open Market Committee’s minutes from its last meeting, which could provide insights into the Federal Reserve’s thinking on interest rates and monetary policy.
Market participants will also continue to watch for any further developments in trade policy, particularly additional details on sector-specific tariffs that President Trump has suggested are forthcoming.
The ongoing earnings season will soon kick into high gear, with major financial institutions expected to report results in the coming days. These reports will provide valuable insights into the health of the U.S. economy and consumer spending patterns.
As markets navigate through trade uncertainties and await key economic data, the technology sector—particularly companies involved in artificial intelligence—continues to demonstrate resilience, as evidenced by Nvidia’s historic market cap achievement.
Traders remain cautiously optimistic about market prospects for the remainder of the year, though many acknowledge that tariff policies and their potential impact on global trade will be a significant factor influencing market direction in the coming months.
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.