Major Indexes Attempt Recovery Following Monday’s Decline
The stock market today showed signs of stabilization Tuesday, July 8, 2025, as investors assessed the impact of President Trump’s sweeping tariff announcements and subsequent signals of flexibility in negotiations. After Monday’s sharp selloff, markets attempted to find their footing amid ongoing trade tensions and anticipation of upcoming earnings season.
As of late afternoon trading, the S&P 500 was up marginally by 0.08% at 6,230.06, the Nasdaq Composite gained 0.12% at 20,437.35, while the Dow Jones Industrial Average lagged, falling 0.28% to 44,282.23.
The market update comes after President Trump announced new tariffs on 14 countries including Japan, South Korea, and Malaysia, with duties ranging from 25% to 40% set to take effect August 1. However, late Monday, Trump indicated the deadline is “not 100% firm,” adding that “If they call up and they say something a different way, we’re going to be open to that.”
Treasury Secretary Scott Bessent told CNBC this morning that several trade deals are expected in the coming days, further easing concerns about the potential economic impact of the tariffs. The 10-year Treasury yield stood at 4.39%, while the VIX fear gauge declined 5.85% to 16.75, reflecting reduced market anxiety.
Corporate News Driving Today’s Markets
Tesla (TSLA) shares rebounded 2% today after Monday’s steep 6.8% decline, which marked the company’s worst single-day performance since June 5. The selloff was triggered by CEO Elon Musk’s weekend announcement of forming a new “America Party,” which intensified tensions with President Trump and raised investor concerns about leadership focus at the electric vehicle maker.
Nvidia (NVDA) shares rose 0.58% to $159.16 as the chipmaker continues its bullish move in recent weeks, trading above both its 50-day and 200-day moving averages.
Other notable movers included SoundHound AI (SOUN), which surged 9.45%, QuantumScape (QS) up 14.78%, and Moderna (MRNA) gaining 10.97%. On the downside, Fair Isaac Corporation (FICO) plunged 12.82%, while Sunrun (RUN) dropped 12.47%.
Among other tech giants, Apple (AAPL) and Oracle (ORCL) continued to feel pressure from Monday’s selloff, with their shares having fallen 1.7% and 2.1% respectively in the previous session.
Upcoming Market Events and Economic Data
Investors are closely monitoring several key events that could impact market news today and in the coming days. The Federal Reserve is set to release minutes from its latest meeting later this week, which could provide insights into the central bank’s thinking on interest rates and inflation.
Today’s economic calendar includes the NFIB small business optimism index for June and the New York Fed’s one-year inflation expectations report.
The second-quarter earnings season is also about to kick off, with major financial institutions expected to lead the reporting calendar. Dividend announcements may show improvement in the third quarter, particularly from major banks that have lifted their dividends following the Federal Reserve’s stress test results.
Global Market Reaction and Trade Tensions
Asian markets showed mixed reactions to the U.S. tariff announcements, with Japan’s Nikkei 225 rising 0.26% to 39,688.81 and South Korea’s Kospi increasing 1.81% to 3,114.95. China’s CSI 300 advanced 0.84% to 3,998.45, while Hong Kong’s Hang Seng Index gained 1.09% to 24,148.07.
The relatively positive performance in Asian markets, particularly in countries directly targeted by the tariffs, suggests investors believe negotiations may lead to more favorable outcomes before the August 1 deadline. This optimism was reinforced by Trump’s comments indicating flexibility on timing and terms.
Goldman Sachs has lifted its S&P 500 forecasts, now seeing the index reaching 6,600 by year’s end, signaling confidence in the market’s resilience despite trade uncertainties.
Investor Sentiment and Market Outlook
Market sentiment remains cautiously optimistic despite Monday’s selloff, with many analysts suggesting the worst of the trade war fears may have passed. Adam Parker, CEO of Trivariate Research, commented on CNBC’s “Closing Bell” that the market reaction might be “just a little bit of selling as we got the highs, and kind of recalibrating before July earnings season,” adding that he doesn’t believe “this is the sign of a new regime at all.”
The stock market live performance today indicates investors are taking a wait-and-see approach, with particular attention to whether follow-through negotiations before the August 1 tariff implementation date can alleviate global trade fears.
Trading volume remains below average, with Monday’s session seeing 16.5 billion shares traded, lower than the last 20-session average of 18.2 billion.
As the markets today continue to digest the implications of potential trade disruptions, investors should remain vigilant for developments in negotiations between the U.S. and its trading partners, upcoming economic data releases, and early signals from the second-quarter earnings season that could provide direction for market movements in the days ahead.
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.