US Stocks at Record Levels Despite Tariff Escalation

U.S. stocks closed the week slightly lower, despite reaching new record levels, as President Trump's tariff announcements weighed on sentiment. The S&P 500 index fell 0.3%, the Dow Jones Industrial Average dropped 1%, and the Nasdaq Composite slipped 0.1%. Chipmaker Nvidia became the first publicly listed company to hit $4 trillion in market capitalization, and Delta Air Lines delivered bullish results and upbeat guidance.

U.S. stocks closed the week on a mixed note, with indices showing slight declines despite reaching new record levels. The S&P 500 index fell 0.3%, the Dow Jones Industrial Average dropped 1%, and the Nasdaq Composite slipped 0.1%. The week was marked by President Trump's tariff announcements, which weighed on investor sentiment.

The week saw significant developments in the tech sector, with chipmaker Nvidia becoming the first publicly listed company to hit $4 trillion in market capitalization. Nvidia's stock price surged after the company's market cap exceeded the $4 trillion mark, driven by the continued growth of AI technologies and the demand for its high-performance computing chips. The company's stock price has been on a roller coaster this year, with a $600 million hit in January due to concerns about its data center chips, but has since rebounded strongly [2].

Delta Air Lines also delivered positive results, reporting quarterly earnings of $2.1 per share, beating the Zacks Consensus Estimate of $2.04 per share. The company's revenue of $16.65 billion for the quarter ended June 2025 also surpassed expectations, with the stock price gaining despite a challenging start to the year. Delta shares have lost about 16.2% since the beginning of the year compared to the S&P 500's gain of 6.5% [3].

The U.S. stock market's performance was also influenced by President Trump's demand for a historic 300 bps rate cut to reduce the annual debt interest of $1.2 trillion. While the Federal Reserve has not yet responded to this demand, the proposal has sparked debate among economists about the potential impact on inflation and the economy [1].

Overall, the week's market performance was characterized by mixed sentiment, with tech stocks and airline stocks showing resilience despite broader market headwinds.

References:
[1] https://www.cryptopolitan.com/us-stock-to-gdp-ratio-hits-an-all-time-high/
[2] https://sg.finance.yahoo.com/news/nvidia-stock-eyes-more-gains-after-chipmaker-becomes-first-company-to-reach-4-trillion-market-value-141526893.html
[3] https://www.fxstreet.com/news/delta-air-lines-dal-beats-q2-earnings-and-revenue-estimates-202507110618