Stock Markets Stall as Trump’s 50% Tariffs Clash With $4T Nvidia Momentum

Nasdaq, S&P 500, Dow Stall as AI Fever Meets Trade War Escalation

Trump Tariffs Rock Brazil and Mining Stocks While Delta (DAL) Leads a Surprise Airline Rally

Markets Stall as Tech and Tariffs Collide

The Nasdaq Composite (^IXIC) briefly touched fresh record territory before pulling back -0.55% to 20,496.95. The S&P 500 (^GSPC) slipped 0.17% to 6,252.60, and the Dow Jones Industrial Average (^DJI) edged up 0.15% to 44,527.08. The cooling followed a session where Nvidia (NVDA), now the first public company to surpass a $4 trillion valuation, had driven the tech-heavy Nasdaq to all-time highs. Yet, markets stalled as traders digested aggressive 50% tariffs from President Trump, targeting Brazilian goods, copper imports, and threatening broader global implications.

Delta (DAL) Ignites Airline Surge With Bold Guidance

Delta Air Lines (DAL) surged 12.82% to $57.20 after posting $2.10 EPS on $15.5B revenue, narrowly beating expectations. The reinstated full-year outlook of $5.25 to $6.25 EPS and $3B–$4B free cash flow revived sentiment in the travel sector. That triggered a sector-wide rally: United Airlines (UAL) jumped 11.01% to $89.01, American Airlines (AAL) added 9.36%, and Southwest (LUV) rose 4.88%. Delta's forecasted Q3 margin of 9–11% and revenue growth up to 4% positions the airline sector as a rebound story amid global trade disruption.

Trump Tariff Blitz Hits Brazil, Copper, and Currency Markets

Trump's retaliatory moves against Brazil, citing the Bolsonaro trial and "unfair trade," imposed a sweeping 50% tariff on Brazilian imports starting August 1. Petrobras (PBR) tumbled 1.98%, Itau Unibanco (ITUB) lost 3.5%, and Santander (SAN) dropped 2.7%. The iShares MSCI Brazil ETF (EWZ) slid nearly 2%, while the Brazilian real dropped as much as 2.4% against the USD.

Copper, another target, surged as Freeport-McMoRan (FCX) climbed 1.54% and Southern Copper (SCCO) rallied almost 4%. Coffee and orange juice futures also jumped due to Brazil's export dominance in those commodities.

MP Materials (MP) Soars on Pentagon Stake Deal

MP Materials (MP) exploded 52.08% to $45.67 after the U.S. Defense Department agreed to take a 15% stake via preferred shares convertible into common stock. The funds will accelerate U.S. rare-earth magnet manufacturing, aiming to lessen dependency on China. With a renewed domestic strategic focus, MP becomes central to reshoring critical mineral supply chains, especially in defense and EV manufacturing.

Circle (CRCL) Extends Rally on Ant Group Integration Rumors

Circle (CRCL) rose another 1.06% to $202.82, gaining 3% premarket, as reports emerged of Jack Ma's Ant Group integrating USDC-USD into its blockchain system. With the stablecoin gaining regulatory traction in the U.S. and potential access to $1T+ Ant International transaction volumes, Circle is positioning itself at the convergence of U.S. regulatory clarity and Chinese fintech adoption. The stock is up over 500% since IPO.

Taiwan Semiconductor (TSM) Rallies on Nvidia, Apple AI Orders

Taiwan Semiconductor (TSM) revenue climbed 39% in the latest quarter, fueled by demand from Nvidia (NVDA) and Apple (AAPL), totaling an estimated $32B. Although shares dipped slightly 1.44% to $228.49, investor optimism remains strong given CEO C.C. Wei's forecast for mid-20% USD revenue growth in 2025 and a $100B CapEx expansion spanning Arizona, Japan, Germany, and Taiwan. As global AI infrastructure spending ramps, TSM's foundry dominance tightens.

Kellogg (KLG) Rockets on Ferrero Buyout Buzz

WK Kellogg (KLG) surged 30.43% to $22.83, with after-hours moves topping 50%, following reports that Ferrero, the maker of Nutella, may acquire the cereal brand for around $3B. While KLG's cereal sales declined 5.7% YoY, a buyout would signal an opportunistic shift for Ferrero into breakfast brands amid consumer shifts toward health, value, and private-label products.

AMD (AMD) Gets Bullish Re-Rating on AI Pipeline

Advanced Micro Devices (AMD) received a major upgrade as HSBC boosted the rating to Buy, citing upside from its MI350 launch and 2026 expectations for $15.1B AI revenue, 57% above consensus. With MI400 architecture coming in 2026 and strong pricing power, AMD is increasingly positioned to challenge Nvidia in the AI accelerator market, despite the latter’s $4T crown.

‘Dexit’ Relocations Shake Corporate Law Landscape

More firms are fleeing Delaware in what’s being dubbed a “Dexit.” Names like Roblox (RBLX), Trade Desk (TTD), Fidelity National Financial (FNF), and Madison Square Garden Entertainment (MSGE) are relocating to Nevada, citing a friendlier legal environment. Venture giant Andreessen Horowitz is the latest to decamp, pushing Nevada's appeal as a corporate sanctuary.

Verdict: Tariff-Driven Volatility, But AI Anchors Bullish Sentiment

While Trump’s tariff threats add headline risk and sector-specific headwinds—particularly in international equities and commodities—AI momentum, led by NVDA, TSM, and a newly bullish AMD, provides structural bullishness. Airline earnings add a surprising cyclical tailwind. The S&P 500’s resilience above 6,250 and Nasdaq’s continued flirtation with all-time highs suggest this market is consolidating, not cracking.

Buy: DAL, MP, CRCL, AMD
Hold: TSM, KLG, FCX
Sell: EWZ, ITUB, PBR

That's TradingNEWS