Wall Street Ends Trading Session Directionless Despite New Tariffs Announced by Trump
The New York Stock Exchange concluded its trading session yesterday without a clear direction amid a climate of market anticipation. The new tariff threats issued by Donald Trump were insufficient to push markets toward significant movement.
Adam Sarhan from 50 Park Investments indicated that markets are searching for a “bullish catalyst,” noting that the prevailing calm is primarily attributed to the postponement of additional tariffs, which were delayed from July 9 to August 1 at the decision of the U.S. president.
The United States sent messages to around twenty countries this week announcing additional tariffs on their exports as part of Trump’s policy to reduce the trade deficit, particularly with Brazil, which faced a 50% tax, along with tariffs on copper, now classified as a strategic material linked to “national security.”
However, markets remained in a state of watchfulness. Sarhan stated, “Markets do not move based on words but based on actions.” Investors are keenly awaiting concrete data, especially given the recurring contradictions in the U.S. president’s stances that have confused overall direction.
Patrick O’Hare from Briefing.com confirmed this caution, saying, “It is well known that tariffs can lead to price increases and higher inflation, yet Wall Street still adopts a wait-and-see approach.”
Meanwhile, the U.S. bond market exhibited noticeable movement, with yields on ten-year Treasury notes rising to 4.36% compared to 4.33% the previous day.
In economic indicators, new unemployment claims fell by 5,000 compared to the previous week, exceeding analysts’ expectations and considered a positive signal.
On the corporate front, some stocks experienced significant moves. WK Kellogg’s shares jumped more than 30% to $22.82 after the Italian company Ferrero announced its acquisition for $3.1 billion. Additionally, Delta Airlines stock rose by nearly 12% following its report of earnings that surpassed expectations, posting a net profit per share of $2.10 and revising its future outlook upward.
Finally, shares of MP Materials, the only company operating a rare earth mineral mine in the United States, surged over 50% after the U.S. Department of Defense announced a $400 million investment in the company, making it its first stakeholder.
