US Markets Hold Steady Amid Tariff Tensions
US equity markets showed a mixed tone on Thursday, July 10, as investors digested fresh tariff announcements by former President Donald Trump. While the Nasdaq slipped, led by declines in software stocks, broader indices held firm, supported by optimism surrounding artificial intelligence (AI) and robust corporate earnings.
Trump’s declaration of a hefty 50% tariff on Brazilian imports and copper, effective from August 1, has escalated trade tensions. The decision, widely seen as politically motivated due to ties with former Brazilian president Jair Bolsonaro, has drawn sharp criticism from Brazil's current leader, Luiz Inacio Lula da Silva.
Despite uncertainties, jobless claims fell to 227,000 last week, suggesting strength in the US economy. Trump urged for rate cuts citing tech growth and crypto gains, but the Fed remains cautious.
Analysts anticipate a summer rally led by AI, banking, and commodities, despite possible corrections from external shocks. The Nasdaq 100 index has reclaimed its bullish channel, with resistance at 24,500 and support at 22,200.
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