Market Indexes Rally Despite Tariff Concerns
The Dow Jones Industrial Average rose 270 points, or 0.6%, on Thursday, July 10, 2025, as investors shook off concerns about new tariff announcements. The S&P 500 gained 0.3%, approaching its all-time high, while the tech-heavy Nasdaq Composite edged up 0.1% after briefly touching a record high earlier in the session.
The market’s resilience came despite President Donald Trump’s announcement late Wednesday of a 50% tariff on imported copper set to take effect August 1, along with a similar 50% levy on Brazilian imports. These moves add to a growing list of countries facing new trade barriers, with Trump having sent letters outlining new tariff rates to leaders of at least 21 countries in recent days.
“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. “The market’s been extremely desensitized to all of this back and forth, and I think for good reason.”
Airline Stocks Lead Market Higher on Delta’s Strong Results
Airline stocks provided significant lift to the broader market today after Delta Air Lines (DAL) reported impressive second-quarter results and reinstated its full-year profit outlook. Delta shares surged 12.5% after forecasting third-quarter and full-year profits above Wall Street estimates.
The positive news from Delta sparked a rally across the airline sector, with United Airlines (UAL) jumping 13.4% and American Airlines (AAL) gaining 12.5%. The Dow Transportation index, widely considered an economic barometer, climbed 3%.
“The positive news from Delta Air Lines is a good sign, showing a little bit more strength in the consumer than you’d otherwise expect,” noted Chris Zaccarelli, chief investment officer at Northlight Asset Management.
MP Materials Soars on Defense Department Deal
In one of the day’s most dramatic moves, shares of MP Materials (MP) skyrocketed more than 47% after the rare earth miner announced a transformative deal with the U.S. Department of Defense. Under the agreement, the Pentagon will purchase $400 million in preferred stock, making it MP’s largest shareholder with a potential 15% stake in the company.
The deal represents a significant step in reducing U.S. dependence on China for rare earth materials, which are crucial components in military weapons systems including the F-35 warplane, drones, and submarines. MP Materials owns the only operational rare earth mine in the United States, located at Mountain Pass, California.
As part of the agreement, MP will build a second magnet manufacturing facility in the U.S., with the Pentagon committing to buy 100% of the magnets produced at the new facility for 10 years. The Defense Department is also guaranteeing a minimum price of $110 per kilogram for neodymium-praseodymium oxide (NdPr), a rare earth compound used in permanent magnets.
WK Kellogg Shares Jump on Acquisition News
WK Kellogg (KLG) shares surged 30% following news that Italian chocolate maker Ferrero has agreed to acquire the breakfast food company for $23 per share in cash. The deal values the Froot Loops maker at approximately $3.1 billion and represents a significant premium to its previous closing price.
The acquisition would mark a major expansion for Ferrero into the breakfast cereal market, adding well-known brands like Froot Loops, Apple Jacks, and Corn Flakes to its portfolio, which already includes Nutella, Ferrero Rocher, and Kinder chocolates.
Tech Sector Mixed as Nvidia Takes a Breather
Technology stocks showed mixed performance on Thursday, with the sector slightly dragging on the broader market. Meta Platforms (META) dropped nearly 1%, while Nvidia (NVDA) retreated after its historic achievement of becoming the first company to reach a $4 trillion market capitalization during Wednesday’s session.
Despite the overall tech sector weakness, Tesla (TSLA) bucked the trend, gaining 2.6% amid discussions about its upcoming annual shareholder meeting scheduled for November.
Federal Reserve Rate Cut Expectations
Minutes from the Federal Reserve’s June meeting, released recently, revealed that most officials anticipate interest rate cuts will be warranted later this year. The Fed views the inflationary impact of Trump’s import tariffs as likely “temporary or modest.”
While a July rate cut appears to be off the table, the odds of a September move have climbed to 64%, according to CME Group’s FedWatch tool. However, St. Louis Fed President Alberto Musalem cautioned that it may take until late this year—or even into 2026—before the true impact of rising import tariffs on inflation comes into focus, highlighting why Fed officials are proceeding cautiously on rate cuts.
Looking Ahead: Earnings Season Kicks Off Next Week
Market participants are now turning their attention to the upcoming earnings season, which begins in earnest next week. “Markets are in a wait-and-see mode. They are looking to see what earnings will be like when (the season) kicks off next week,” noted Zaccarelli.
With major indexes approaching record territory despite ongoing trade tensions and economic uncertainties, investors will be closely watching corporate results and guidance for signs of continued resilience in the face of these challenges.
Today’s Market Recap
As markets today demonstrated remarkable resilience in the face of escalating trade tensions, investors appear to be focusing more on strong corporate performance and the prospect of Fed rate cuts later this year. The airline sector’s strong showing, coupled with significant moves in stocks like MP Materials and WK Kellogg, helped offset weakness in some technology names.
With the S&P 500 just shy of a record close and the Dow making steady progress toward its first new high since December, market sentiment remains cautiously optimistic as we head into earnings season. However, traders will continue monitoring developments on the trade front, particularly as the August 1 deadline for new tariffs approaches.
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.