Major Indexes Hold Steady at the Opening Bell
Markets opened with minimal movement on Tuesday, July 8, 2025, as investors digested President Trump’s decision to extend his “reciprocal” tariff deadline from July 9 to August 1. At the market open, the S&P 500 (^GSPC) edged up 0.1%, while the Dow Jones Industrial Average (^DJI) dipped slightly by 0.29% to 44,278.86. The tech-heavy Nasdaq Composite (^IXIC) showed more resilience, rising 0.09% to 20,430.36.
The Russell 2000, which tracks small-cap stocks, outperformed the major indexes with a gain of 0.54% to 2,226.13, suggesting investors may be rotating into smaller companies amid the ongoing trade tensions. The VIX, often referred to as the market’s “fear gauge,” fell nearly 5% to 16.92, indicating reduced market anxiety following the tariff deadline extension.
“Wall Street is weighing President Trump’s threat of stiff tariffs on key trading partners against his reprieve on the return of sweeping ‘Liberation Day’ duties,” noted market analysts. The extended deadline gives countries three additional weeks to negotiate trade deals with the US, which has temporarily calmed market jitters.
AI Stocks Lead Market Gainers
Artificial intelligence stocks continued their impressive run today, with several names posting substantial gains at the market open. SoundHound AI (SOUN) surged 16.26% to $13.23, making it one of the day’s top performers. The voice AI specialist has seen remarkable growth, with revenue increasing 85% year-over-year in 2024 to $84.7 million. Management projects 2025 revenue of $157–$177 million, representing a nearly 96% increase over the previous year.
BigBear.ai Holdings (BBAI) also showed strength, climbing 11.50% to $8.68. Despite slower growth compared to SoundHound, the company has secured significant government contracts, including a $13.2 million Department of Defense deal, which has bolstered investor confidence.
Nvidia (NVDA), the AI chip giant, posted a modest gain of 0.53% to $159.08. The company continues to benefit from partnerships with emerging AI players like SoundHound, further cementing its position as a key infrastructure provider in the AI ecosystem.
Other notable AI-related gainers included Wolfspeed (WOLF), which soared 34.42%, and ENDRA Life Sciences (NDRA), which skyrocketed 157.19%.
Trump’s Tariff Policies Impact Markets
President Trump’s trade policies remained at the forefront of market concerns today. The administration sent tariff letters to 14 countries while extending the deadline for “reciprocal” tariff rates by three weeks to August 1. This move has given trading partners additional time to negotiate, which markets have interpreted as a positive development.
Clean energy stocks felt pressure following announcements that Trump’s “big, beautiful bill” will end clean energy subsidies. First Solar (FSLR) fell 2% in early trading, while SolarEdge Technologies (SEDG) and Enphase Energy (ENPH) both dropped approximately 4%.
International markets have reacted to the tariff news as well, with Japan and South Korea stocks gaining ground after Trump extended the tariff deadline. However, China has issued warnings about potential supply chain disruptions in response to the tariff threats.
Tesla Rebounds After Musk’s Political Announcement
Tesla (TSLA) shares recovered slightly at the market open, rising 1% after tumbling more than 6% in the previous session. The initial selloff came after CEO Elon Musk announced his intention to form a new third political party in the US called the “America Party.” This move has raised concerns among investors about Musk’s focus on running the electric vehicle manufacturer.
Despite calls from investors to refocus on his company responsibilities, Musk has indicated he plans to continue his political pursuits. The market’s reaction today suggests some investors may be seeing the previous day’s selloff as an overreaction.
Other Notable Stock Movements
Several other stocks made significant moves at today’s market open:
– SoFi Technologies (SOFI) gained 6.89% to $20.57, continuing its strong performance in the fintech sector.
– QuantumScape Corporation (QS) rose 9.98% to $7.71, as the solid-state battery developer attracted renewed investor interest.
– Sunrun (RUN) was among the day’s biggest losers, falling 9.67% to $10.03, likely impacted by the news about clean energy subsidy cuts.
– Alaska Airlines (AAL) rose 3% after receiving a positive earnings preview from UBS Securities, which expects the airline’s second-quarter earnings per share to align with company guidance.
Upcoming Market Events and Economic Data
Investors are keeping an eye on several economic indicators and market events in the coming days. Today’s economic releases include the NFIB small business optimism index for June and the New York Fed’s one-year inflation expectations, also for June.
On the earnings front, no notable earnings releases are scheduled for today, but Amazon’s (AMZN) four-day “Prime Day” sales event kicks off, which could impact retail stocks throughout the week.
Goldman Sachs has raised its S&P 500 forecasts, now projecting the index to reach 6,600 by year-end, signaling confidence in the market’s trajectory despite ongoing trade tensions.
Corporate News Affecting Markets
Several corporate developments are influencing today’s market action:
– Apple (AAPL) is facing challenges in its AI division, with reports that a top AI models executive has left to join Meta Platforms (META). This comes as Meta is reportedly building a “superintelligence” team.
– Chipmakers may face serious disruption in copper supply according to a PwC report, potentially impacting the semiconductor industry’s production capabilities.
– The European Union is rushing to conclude a framework trade deal with the US, likely in response to the looming tariff deadline.
As markets continue to navigate the complex landscape of trade tensions, corporate earnings, and technological innovation, investors remain cautiously optimistic at today’s market open. The extended tariff deadline has provided some breathing room, but uncertainty persists regarding the ultimate resolution of these trade issues and their potential impact on global supply chains and corporate profits.
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.