Stock Market Today: Markets Stabilize After Tariff Scare as Tech Stocks Lead Recovery

By / / Market Update

Major Indexes Rebound as Trump Signals Flexibility on Tariff Deadline

U.S. markets showed signs of recovery on Tuesday, July 8, 2025, as investors regained some confidence following Monday’s steep sell-off triggered by President Donald Trump’s announcement of sweeping new tariffs. The S&P 500 traded just above the flatline, while the Nasdaq Composite climbed 0.2%. The Dow Jones Industrial Average slipped 21 points, or less than 0.1%.

The market’s cautious optimism came after Trump indicated late Monday that the new August 1 tariff 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.” This statement provided some relief to investors who had feared the immediate economic impact of the proposed 25% tariffs on goods imported from 14 countries, including Japan, South Korea, and several BRICS members.

Asian Markets Show Resilience Amid Trade Tensions

Asian markets demonstrated surprising resilience Tuesday, with Japan’s Nikkei 225 benchmark ending the day 0.26% higher at 39,688.81 and South Korea’s Kospi increasing by 1.81% to close at 3,114.95. Mainland China’s CSI 300 index advanced 0.84% to end at 3,998.45, while Hong Kong’s Hang Seng Index increased by 1.09% to 24,148.07.

“Markets appear to interpret the tariff extension as posturing, not policy—a sign that room for dialogue still exists,” noted Morningstar strategist Kai Wang, reflecting the cautious optimism among international investors.

Tech Stocks Lead Market Recovery

Technology stocks showed signs of recovery after Monday’s sell-off, with Nvidia shares rising 0.6% on Tuesday. The chipmaker is closing in on reaching a $4 trillion market cap despite recent market volatility. Nvidia has rallied in recent weeks, trading above both its 50-day and 200-day moving averages, showing technical strength despite the broader market uncertainty.

Intel (INTC) was among the day’s standout performers, with shares climbing 5.61% as investors rotated back into semiconductor stocks. The company has been gaining momentum following its restructuring efforts and renewed focus on AI chip development.

Tesla (TSLA) shares rebounded 2% after losing 6.1% on Monday. The electric vehicle maker’s stock had plunged about 6.8% on Monday following Elon Musk’s announcement that he was forming a new political party called the “America Party,” which reignited investor fears about his focus on running Tesla effectively.

Healthcare Sector Shows Strength

Healthcare stocks demonstrated notable strength, with Moderna (MRNA) emerging as one of the day’s top gainers, rising 11.11% as the company continues to advance its mRNA pipeline beyond COVID-19 vaccines. Other healthcare gainers included Progyny (PGNY), up 11.03%, and Recursion Pharmaceuticals (RXRX), which climbed 11.16%.

ProKidney Corp. (PROK) was the day’s most dramatic mover, surging an astonishing 361.67% following positive clinical trial results for its kidney disease treatment.

Clean Energy Sector Under Pressure

While the broader market showed signs of stabilization, the clean energy sector remained under pressure. Pre-market trading showed significant weakness in solar stocks, with First Solar (FSLR) down 2%, SolarEdge (SEDG) falling 4%, and Enphase Energy (ENPH) dropping 4%. The sector’s weakness follows news that Trump’s new domestic policy bill will end key subsidies that have supported growth in renewable energy.

Among the day’s biggest losers were Fair Isaac Corporation (FICO), which plummeted 12.56%, and Sunrun Inc. (RUN), which fell 12.47%.

Tariff Concerns Continue to Loom

Despite the market’s stabilization, concerns about the potential impact of tariffs continue to weigh on investor sentiment. President Trump has announced new tariffs on 14 countries to go into effect August 1, including Bangladesh, Bosnia and Herzegovina, Cambodia, Indonesia, Japan, Laos, Malaysia, Myanmar, Serbia, South Africa, South Korea, Thailand, and Tunisia.

The countries were hit with import duties that are similar to, and in some cases even higher than, what Trump first announced back in April in his so-called “reciprocal” tariffs. Japan, for example, was hit with a 25% levy that’s slightly above the 24% rate Trump initially proposed in April.

Looking Ahead: Market Events to Watch

Investors are now turning their attention to upcoming market catalysts, including the release of Federal Reserve minutes and the start of second-quarter earnings season later this week. Advanced Micro Devices (AMD) is expected to report quarterly results late in the month, with elevated expectations following the stock’s impressive 28% rise in June after unveiling new AI chips to compete with Nvidia.

The semiconductor sector remains particularly vulnerable to trade tensions, as President Trump ordered the Commerce Department to investigate semiconductor tariffs in April. With his preference for 90-day timelines, the results of that investigation could arrive this month, potentially adding another layer of volatility to tech stocks.

Market Recap: By the Numbers

As of midday trading, the major indexes stood at:

– S&P 500: 6,230.19, up 0.21 points (essentially flat)
– Dow Jones Industrial Average: 44,282.78, down 123.58 points (-0.28%)
– Nasdaq Composite: 20,438.25, up 25.74 points (+0.13%)
– Russell 2000: 2,234.30, up 20.08 points (+0.91%)
– VIX: 16.75, down 1.04 points (-5.85%)

The small-cap Russell 2000 index showed the strongest performance among major indexes, suggesting improving risk appetite among investors after Monday’s risk-off sentiment.

As markets continue to digest the implications of potential trade barriers, investors remain cautiously optimistic that negotiations before the August 1 deadline could alleviate global trade fears and provide a more stable foundation for continued economic growth.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.
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