Nasdaq Reaches New Highs; Stock Market Ignores Tariff Threats
Stock market indices are high for now despite the threat of new tariffs to be issued by the U.S. against many of its trade partners.
Quick overview
- Premarket trading on Monday saw stock market indices rise, with the Nasdaq continuing its record high streak.
- Nvidia and Microsoft have significantly boosted the Nasdaq, with Nvidia projecting $45 billion in revenue for Q2 2025.
- Despite ongoing tariff talks initiated by President Trump, the stock market shows resilience and minimal reaction to new threats.
- Investors appear less concerned about tariffs, focusing instead on other factors influencing market stability.
As premarket trading began on Monday, the stock market indices ticked higher, with Nasdaq continuing its five-day streak of record highs.
The Dow Jones index has not changed much over the last week, but it is still climbing as trading begins for the new week. The S&P 500 gained 0.06% the previous week and is climbing slightly in the pre-trading session for Monday. The big winner is the Nasdaq Composite index, though, with a 0.3% gain for Monday so far after days of consecutive all-time highs.
Nvidia and Microsoft Soar
Nasdaq has scored win after win over the last week, riding high thanks to excellent stock performance from Nvidia (NVDA) and Microsoft (MSFT), among others. But these two companies in particular have done very well in recent weeks, notching record highs on the stock market and dramatically increasing their market caps.
Nvidia’s management expects $45 billion in revenue for the second fiscal quarter of 2025 alone. For the first quarter, they earned $44.1 billion, which was an increase of about 69% from the previous year. The company does not expect that kind of growth at this point, but they do anticipate being able to outpace their competition and to continue to profit admirably from strong AI chip demand.
Microsoft has done nearly as well in recent weeks, when comparing stock growth. The company’s stock is down 0.69% over the last 24 hours, but it is performing much better over the long term. In the last month, MSFT has added 4.11%, bringing its stock price to $506.61 for Monday. That is nearly an all-time high for this stock which has only grown in value in 2025. Profit and revenue are both up for the company, and they have experienced significant success off of their AI investment.
Stock Market Not Bothered by Tariff Talks
Throughout the first half of 2025, U.S. President Donald Trump has caused the stock market to fluctuate wildly with his tariff orders. As he levied stiff taxes against goods from Mexico, Canada, China, and other important trade partners, the stock market has reacted by dipping severely with each new tariff added. Then, as Trump pulls back on the tariffs or reaches an agreement with a country, the stock market rebounds.
Even though Trump is still issuing new tariffs for a number of countries, we are not seeing the same kind of impact on the stock market. It looks like the market indices are barely being affected by the new tariff threats.
That is great news for the market, as it shows resilience, and it demonstrates that investors are not as worried as they were earlier in the year about new tariffs. They have likely learned that Trump talks big with his threats and then pulls back when his targets are willing to negotiate.
Investors are likely expecting something similar to happen to these latest tariffs, but that is not the only factor keeping the stock market stable right now. It should be noted that many of the countries that Trump is targeting with his new tariffs are smaller trade partners whose impact on U.S. businesses is significantly smaller than the countries that he targeted earlier in the year.
Investors should expect the market to react more strongly to other factors from this point and be less bothered by new tariff threats.
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