Stocks in US, Asia, and Europe surge despite Trump's new tariffs

Cryptopolitan
Updated
Mitrade
coverImg
Source: DepositPhotos

Stocks from New York to Tokyo to Frankfurt rallied Thursday, even as President Trump slapped new tariffs on imports from India and South Korea, escalating his trade fight with America’s key partners.

Despite that, markets powered forward on the back of strong tech earnings, a steady hand from the Federal Reserve, and signs that traders weren’t rattled by the latest White House decision.

According to data from CNBC, S&P 500 futures jumped 0.94%, Nasdaq 100 futures climbed 1.34%, and contracts tied to the Dow Jones Industrial Average rose 132 points, or 0.3%, in early morning trading.

The sharp moves came right after Microsoft and Meta Platforms both posted better-than-expected earnings after the close Wednesday. Shares of Microsoft surged 8%, while Meta climbed 11% in extended trading.

Microsoft told investors that annual revenue from its Azure cloud unit crossed $75 billion, while Meta offered a third-quarter forecast that exceeded analysts’ projections. Both are members of the so-called Magnificent Seven, a label used to track the group of top-performing tech giants.

Trump’s tariffs hit India and South Korea while Asia pulls back

Markets in Asia-Pacific traded mostly lower Thursday as investors processed Trump’s fresh round of tariffs and a steady policy decision from the Bank of Japan (BoJ).

The Japanese central bank left its short-term interest rate unchanged at 0.5%, its fourth straight meeting without a change. That call had been widely expected, but the reaction across asset classes was mixed.

The Japanese yen appreciated 0.49% against the US dollar, trading at 148.77, while yields on Japanese Government Bonds (JGBs) rose slightly across maturities. The 10-year yield increased by 1 basis point to 1.571%, the 5-year rose 1.6 basis points to 1.091%, the 20-year yield ticked up to 2.550%, and the 30-year yield rose just over 1 basis point to 3.096%.

Trump’s new tariff structure includes a 15% blanket rate on imports from South Korea and 25% duties on goods from India, alongside an extra, undefined “penalty”. That triggered a quick reaction from both stock and currency markets.

India’s Nifty 50 index dropped 0.56%, while the BSE Sensex slid 0.97% by 9:25 a.m. in Mumbai. In South Korea, auto stocks were hit hard, even as Samsung Electronics saw its shares rise, despite second-quarter profits coming in below expectations.

Meanwhile, Nissan Motor, based in Japan, posted a $530 million operating loss for the first quarter of its fiscal year. Still, its stock rose, a reaction analysts tied to improving forward guidance.

Europe steadies as investors await more earnings

In Europe, indexes showed signs of early optimism. Futures data from IG pointed to a mild gain at the open. London’s FTSE 100 was seen up 0.1%, Germany’s DAX projected a 0.2% gain, and Italy’s FTSE MIB aimed for a 0.3% rise. France’s CAC 40 was expected to open flat.

This came a day after European markets closed mixed on Wednesday. With second-quarter earnings season heating up across the region, investors were moving sector by sector. A heavy schedule of corporate results is lined up for Thursday, including Unilever, Shell, BMW, Sanofi, Renault, SocGen, Anglo American, Credit Agricole, and ArcelorMittal. Other names expected to report include London Stock Exchange Group, Euronext, AF-KLM, and Anheuser-Busch InBev.

While markets braced for those earnings, investors were also watching the Federal Reserve closely. At its meeting yesterday, the Fed left its benchmark interest rate unchanged in a range of 4.25% to 4.50%, but it wasn’t a unanimous call.

Fed Governor Michelle Bowman and Governor Christopher Waller both voted against the hold, preferring a more aggressive stance. When asked during a press conference whether the Fed was considering another rate move in September, Chair Jerome Powell said plainly, “We’ve made no decisions.”

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Dow Jones futures rise due to strong earnings from tech heavyweights, US PCE eyedDow Jones futures advance ahead of the US market opening on Thursday, trading around 44,800, up by 0.38%, during European hours.
Author  FXStreet
16 hours ago
Dow Jones futures advance ahead of the US market opening on Thursday, trading around 44,800, up by 0.38%, during European hours.
placeholder
Strategy Unveils $2.46 Billion Bitcoin Buy, Biggest Purchase In 8 MonthsStrategy has just added to its Bitcoin buying spree with a multi-billion dollar purchase, its largest buy since November of last year. Strategy Has Bought Another 21,021 Bitcoin As announced by Strategy Chairman Michael Saylor in an X post, the company has completed a fresh Bitcoin acquisition. With this buy, Strategy has added 21,021 BTC […]
Author  Bitcoinist
21 hours ago
Strategy has just added to its Bitcoin buying spree with a multi-billion dollar purchase, its largest buy since November of last year. Strategy Has Bought Another 21,021 Bitcoin As announced by Strategy Chairman Michael Saylor in an X post, the company has completed a fresh Bitcoin acquisition. With this buy, Strategy has added 21,021 BTC […]
placeholder
Asian markets dipped as early optimism over U.S. trade deals fadedInvestors appeared to pause after a week of rapid policy developments.
Author  Cryptopolitan
Jul 29, Tue
Investors appeared to pause after a week of rapid policy developments.
placeholder
The S&P 500 broke above 6,400 after the U.S. and EU agreed to lower tariffs to 15%.U.S. President Donald Trump confirmed Sunday evening that the United States had finalized a tariff deal with the European Union.
Author  Cryptopolitan
Jul 28, Mon
U.S. President Donald Trump confirmed Sunday evening that the United States had finalized a tariff deal with the European Union.
placeholder
FTSE 100 hits record high on positive corporate newsLondon's main stock indexes rose on Thursday, with the blue-chip index hitting an all-time intraday peak
Author  Reuters
Jul 24, Thu
London's main stock indexes rose on Thursday, with the blue-chip index hitting an all-time intraday peak