US stocks closed higher Thursday, with the S&P 500 and Nasdaq reaching new record highs, as investors shrugged off President Donald Trump’s announcement of a 50% tariff on Brazilian goods, the highest yet in a week of escalating trade measures.
The sharp tariff move, aimed at Latin America’s largest economy, marked a departure from the 10% baseline levied on other nations during the so-called “Liberation Day” wave of trade letters. The Brazilian real, which plunged 2.3% on Wednesday, rebounded 0.8% against the dollar following the announcement.
“Markets have largely dismissed the week’s tariff announcements, but Brazil’s treatment caused a shock,” said William Jackson of Capital Economics. “Countries with tense US ties now look increasingly exposed.”
The White House also confirmed a 50% tariff on copper imports, effective Aug. 1, sending copper prices and mining stocks surging. London’s FTSE 100 rallied to a fresh record, buoyed by the sector.
Other major market movers included WK Kellogg, whose shares jumped after Ferrero confirmed a US$3 billion takeover of the cereal giant.
Despite global trade tensions, bond yields edged up slightly — the 10-year Treasury yield rose to 4.35% from 4.34% — while crude prices dropped. WTI futures fell 2.6%.
Bitcoin continued its bull run, hitting a new all-time high above US$113,000.
Closing numbers:
S&P 500: +0.3%
Nasdaq Composite: +0.1%
Dow Jones Industrial Average: +0.4% (+192 pts)
10-Year Treasury Yield: 4.35%
WTI Crude: -2.6%
Bitcoin: Above US$113,000
Markets appear resilient, though analysts warn that further retaliation from Brazil or wider fallout from the US tariff campaign could reignite volatility.
WSJ