Nasdaq 100 and S&P500: AI Surge Keeps US Stocks Steady as Traders Eye Fed and Tariffs

Stocks Hold Ground as AI Strength Counters Trump Tariff Tensions

Stocks were little changed early Thursday. Traders gauged the market’s resilience after Trump’s 50% tariffs. Strong AI momentum continued to buoy sentiment.

S&P 500 futures dipped 0.1%. Nasdaq-100 futures hovered near flat. Dow futures fell 75 points.

On Wednesday, the Nasdaq closed at a record high. Nvidia’s gains and bullish AI sentiment helped traders look past tariff concerns.

Can Ongoing AI Optimism Offset Tariff Pressures?

Nvidia briefly hit a $4 trillion valuation after rising nearly 2%. This fed optimism that AI-driven productivity and capex could cushion the impact of higher prices from tariffs.

Jeremy Siegel told CNBC that AI could counter tariff-induced price pressures. This reinforced the bullish tone.

Advanced Micro Devices rose 2% in premarket trading after an HSBC upgrade. The upgrade cited strong pricing for AMD’s new AI chips as a revenue upside catalyst.

The Nasdaq gained 0.9% Wednesday. Traders see AI as a core pillar for bulls holding the market’s recent highs.

Will Federal Reserve Rate Cuts Face Delays from Tariff-Driven Inflation?

The Federal Reserve’s June minutes showed policymakers split on the timing of rate cuts. Tariff-related price pressures loom, adding complexity to the Fed’s path.

Bank of America expects firmer inflation in the coming months. Tariffs and higher equity prices driving up portfolio management fees may push inflation higher.

Initial jobless claims fell unexpectedly to 227,000. This signals a resilient labor market.

However, continuing claims climbed to 1.96 million, the highest since late 2021. Traders remain alert for signs of labor market cracks that could guide Fed policy.

How Are Sectors and Key Stocks Reacting to Trade Headlines?

Brazilian stocks retreated after Trump’s 50% tariffs on Brazilian imports. The iShares MSCI Brazil ETF fell 2%. Petrobras also traded lower.

MP Materials surged 41% after the Pentagon said it would become its largest shareholder. The move will expand U.S. rare earth processing capacity.

Delta Air Lines jumped 11% after reinstating its profit outlook and posting Q2 beats. WK Kellogg soared 30% on a $3.1 billion buyout from Ferrero.

Helen of Troy tumbled 16% after issuing weak guidance, showing the divergence in stock reactions during earnings season.

What Should Traders Watch Next?

The market’s next test comes as second-quarter earnings season ramps up next week. Traders will see if AI momentum and consumer resilience can offset tariff concerns.

Investors will also track inflation data and Fed commentary to gauge rate cut timing.

If tariff impacts remain limited, the bull market could extend. But deeper supply chain pressures could add volatility to Q3 positioning.

More Information in our Economic Calendar.