Investors Cautiously Drive Stocks Back Up
Stocks were up on Wednesday as the market tentatively shifted bullish while Trump's new tariffs loomed.
Quick overview
- After a decline on Monday, the stock market showed slight gains on Tuesday and a positive start on Wednesday.
- Investors are cautious due to new tariffs announced by Trump, leading to a preference for stable stocks over risky ones.
- Tesla's stock rose only 0.13%, while Microsoft and Nvidia saw gains of 1.64% and 2.16%, respectively.
- Despite a bullish market with the Dow and Nasdaq climbing, concerns remain about potential downward shifts due to tariff impacts.
After Monday’s stock market decline, Tuesday trading was up slightly by the end of the day and Wednesday trading was off to a positive start as investors warily push values up.
As Trump unleashes a new round of tariffs with letters being sent out to many countries around the world, the stock market is in a taste of precipitous flux. It could rapidly swing downward at any moment, so investors are cautious about where they are putting their money. The strong, stable stocks are performing better than the risky ones at the moment.
Tesla (TSLA) is up just 0.13% on the bullish market, while Microsoft is doing much better with a gain of 1.64% over the last 24 hours. Nvidia (NVDA) added 2.16% in early Wednesday trading, beating the market average. While Tesla has struggled for much of 2025, Nvidia and Microsoft have performed much better, actually setting record highs recently.
The Market Remains Bullish… for Now
On Wednesday, as trading began after the surprisingly positive Tuesday, the Dow Jones rose by 0.43%, now having recovered from Monday’s losses. The Nasdaq Composite also climbed, adding 0.93% and climbing above its most recent high. The S&P 500 gained 0.58% and is very close once more to its all-time high.
These upswings have created a bullish market, but the question is can the upward momentum be maintained? Across multiple markets, the overall picture is a positive one. Bitcoin climbed slightly higher this week, edging above $109K. Oil futures rose as well, but 10-year Treasury note yields did not change much at all.
As more information is revealed about Trump’s tariff plans and countries begin to respond to his tariff decisions, the market is likely to shift downward again. Investors should expect to see the stock market dip later this week with tech stocks making some of the most significant declines.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save