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Home Sector Markets Stock market today: Cautious optimism amid U.S. trade uncertainty, tech rally

Stock market today: Cautious optimism amid U.S. trade uncertainty, tech rally

AI and semiconductor stocks lead the charge, while consumer sectors lag due to tariff impacts 
Stock market today: Cautious optimism amid U.S. trade uncertainty, tech rally
Despite gains, President Trump’s new tariffs have unsettled markets and heightened uncertainty for investors 

Global stock markets entered Thursday on a cautious note, with investors closely monitoring the latest developments in U.S. trade policy, ongoing geopolitical tensions, and the continued rally in technology stocks. The week has been marked by heightened volatility, as the imposition of new tariffs and anticipation of key economic data have kept traders on edge.

U.S. markets: Record highs and renewed volatility

Wall Street recap

On Wednesday, the Dow Jones Industrial Average rose 217 points, or 0.5 percent, closing at 44,458.30 after snapping a two-day losing streak. This increase was buoyed by a rebound in large-cap stocks and renewed optimism in the tech sector. Similarly, the S&P 500 gained 0.6 percent, closing at 6,263.26, just shy of its all-time high, as investors rotated back into growth stocks. The Nasdaq Composite outperformed, climbing 0.9 percent to a record close, driven by strong gains in artificial intelligence (AI) leaders like Nvidia, which briefly touched a $4 trillion market cap. 

Despite Wednesday’s gains, the mood remains cautious. U.S. President Donald Trump’s announcement of sweeping new tariffs—including a 50 percent levy on Brazilian imports and potential 200 percent tariffs on pharmaceuticals—has unsettled global markets. The White House has set an August 1 deadline for the new tariffs, with no further extensions, intensifying uncertainty for multinational corporations and investors alike.

Sector performance

In the technology sector, AI and semiconductor stocks continued to lead the market, with Nvidia’s surge fueling broader gains in the industry. Meanwhile, the consumer discretionary and energy sectors lagged earlier in the week, reflecting concerns about consumer confidence and the impact of rising input costs due to tariffs. On the other hand, utilities provided a defensive haven, posting modest gains as investors sought stability amid the volatility.

Read more | Stock market today: U.S. dollar rises, Asian shares mixed on tariff uncertainty

Global markets: Mixed reactions

Asia

Japan’s Nikkei 225 and South Korea’s Kospi saw modest gains after the U.S. clarified tariff details; however, sentiment remains fragile as both countries are directly affected by the latest trade measures. In contrast, emerging markets outperformed their developed peers in June, with Taiwan and Brazil leading the gains due to tech exposure and relative policy stability. Nonetheless, Brazil’s outlook is now clouded by the impact of new U.S. tariffs.

Europe

European equities, represented by the Stoxx 600, edged higher mid-week; however, investors remain wary of the potential spillover effects from U.S. trade actions and the upcoming second-quarter earnings season.

Indian markets: Under pressure

In early Thursday trade, the Sensex fell over 200 points, dropping below 83,200, while the Nifty slipped under 25,450. IT and pharma stocks were particularly weak, reflecting global concerns about trade and earnings momentum. Analysts from Indian brokerages noted the impact of weaker-than-expected pre-sales in the real estate sector and muted growth in IT. However, select energy and infrastructure stocks continue to be favored due to robust order books and government policy support.

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