Stock Markets Defy Tariff Jitters as Nvidia Soars and Fed Eyes Rate Cut

US stock markets climbed on July 9, 2025, despite President Donald Trump’s new tariff announcements targeting trading partners. The Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.4%, and the Nasdaq Composite advanced 0.6%. Meanwhile, Nvidia’s market cap hit a historic $4 trillion, underscoring tech’s resilience amid trade tensions.

The Federal Reserve’s latest minutes added intrigue, hinting at possible rate cuts despite tariff-driven inflation risks.

Tariffs Shake Commodities, Not Stocks

Trump’s tariff letters, targeting countries like the Philippines, Libya, Algeria, and Iraq with 20-30% duties, set an August 1 deadline. His proposed 50% tariff on copper and 200% on pharmaceuticals rattled markets, with copper prices dropping 3% after a record high.

Unlike the 2018 trade war, which sparked broad sell-offs, markets now appear more resilient, focusing on smaller trading partners. Still, industries like data centers and autos face cost pressures from higher copper prices.

Fed’s Cautious Pivot

The Federal Open Market Committee’s June 2025 minutes revealed that only a few officials, including Chair Jerome Powell, supported an immediate rate cut. Most favor a reduction later this year, citing stable long-term inflation expectations despite tariff pressures. This echoes the Fed’s 2019 strategy, balancing growth and inflation during trade disputes, though today’s global dynamics add complexity.