Market Situation and Background
All-Time Highs Despite Tariff Threats
S&P 500 & Nasdaq: Both indices reached new record levels on Thursday, continuing the positive trend from the previous day.
Tariff Threats: U.S. President Donald Trump has announced new tariffs on semiconductors and pharmaceuticals, as well as increased copper tariffs. These measures initially caused uncertainty, but the markets seem to be adapting to this negotiation tactic.
Market Reaction: Futures initially indicated weakness, but after the initial shock, prices stabilized again. Analysts attribute this to investors getting used to the deadline play (e.g. deadline for new tariffs on August 1).
Geopolitical Risks
Israel-Iran Conflict: According to CNN, Israel is considering an attack on Iran’s nuclear facilities. Such news usually creates uncertainty in the financial markets.
Inflation & Bond Yields: Inflation in the UK has exceeded its target, slightly driving up U.S. Treasury yields as well.
Impact on Private Investors
Stable Market Base
Despite these challenges, sentiment among private investors remains positive. The recovery is primarily driven by big tech stocks. The Dollar Index (DXY) remains near a two-and-a-half-week high, underscoring the USD’s status as a “safe haven.”
Corporate News
Some companies such as Palo Alto Networks, Target, or Medtronic are under pressure due to weak quarterly numbers or fraud allegations (UnitedHealth). Other companies like Lowe’s, on the other hand, are benefiting from solid results.
Summary
Wall Street currently shows remarkable resilience: Despite new tariff threats from the U.S. president and geopolitical tensions in the Middle East, the S&P 500 and Nasdaq Composite reach new all-time highs. Private investors can view this as a sign of a robust market base – even though individual sectors or companies continue to face specific challenges.