The Nasdaq composite index reached an all-time high on Wednesday as big tech stocks rallied, led by gains in Nvidia, Microsoft, Meta, and Alphabet. The S&P 500 rose 0.6% for its first gain of the week, while the Dow Jones Industrial Average added 0.5%. The rally came despite ongoing trade tensions, with President Trump announcing tariffs on pharmaceutical drugs at a “very high rate” of 200%.
The latest developments in the White House’s trade war have heightened concerns about potentially more severe tariffs that could hinder economic growth and increase recession risks. Copper prices eased after spiking a day earlier, while shares in mining company Freeport-McMoRan fell 1.5%. Financial markets have been volatile since the White House rolled out its proposed tariff hikes in the spring.
Despite these concerns, Wall Street analysts predict that companies in the S&P 500 will deliver a combined 5% annual growth in second-quarter earnings. Companies like Delta Air Lines and other major U.S. carriers are expected to report decline in profits due to uncertainty about Trump’s tariffs affecting their budgets.
The tech sector led the gains, with Nvidia rising 1.8% and becoming the first public company to exceed $4 trillion in value. Shares in Microsoft, Meta, and Alphabet also rose, while Amazon extended its Prime Day sales for the first time to four days.
In bond market trading, the yield on the 10-year Treasury slid to 4.34% from 4.40% late Tuesday. Overseas markets closed broadly higher in Europe after a mixed finish in Asia. The Nasdaq composite index closed at 20,611.34, while the S&P 500 rose to 6,263.26 and the Dow Jones Industrial Average added 217.54 to 44,458.30.
Source: https://www.latimes.com/business/story/2025-07-09/gains-for-tech-stocks-push-nasdaq-to-another-record