[New York Stock Market Briefing] S&P and Nasdaq Hit Record Highs…Tesla Rebounds 4.7%

The three major U.S. stock indices ended higher for the second consecutive day. Despite news that U.S. President Donald Trump would impose high “tariff bombs” on Brazil, investors remained optimistic, pushing the S&P 500 and Nasdaq Composite Index to all-time highs. The market's sensitivity to the Trump administration's tariff policies appears to be gradually easing.

On the 10th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed up 192.34 points (0.43%) at 44,650.64. The S&P 500 rose 17.20 points (0.27%) to close at 6,280.46, while the tech-heavy Nasdaq Composite Index added 19.33 points (0.09%) to end at 20,630.66. Both the S&P 500 and the Nasdaq Composite registered new all-time highs again.

In a letter released the previous day, President Trump threatened to raise tariffs on Brazilian imports to 50% starting next month, and Brazil responded by hinting at retaliatory 50% tariffs—but the news had little effect on investor sentiment. The market is interpreting Trump’s actions as more political rhetoric than calculated economic decision-making.

Mike Dickson, Head of Research and Quantitative Strategies at Horizon Investments, said, “Given tariff uncertainty, it’s hard to imagine valuations (stock prices relative to earnings) being higher than at the start of the year,” adding, “The market has become extremely insensitive to all these circumstances, and I think there’s a good reason for that.”

By sector, all industries except technology and communication services rose. Consumer discretionary climbed 1%.

Most major technology firms fluctuated near their previous levels, while blue-chips showed a leading trend. AI chip giant NVIDIA closed at $164.10, finishing above a $4 trillion market capitalization for the first time ever.

Tesla jumped 4.73%. The gains appear to be driven by announcements to expand its robotaxi service area and to integrate the ‘Grok’ AI service into the company.

Delta Air Lines surged 11.99% after issuing third-quarter and annual outlooks that beat market expectations, fueling optimism ahead of the second-quarter earnings season. American Airlines Group also spiked 12.72%, with the overall airline sector seeing increased momentum.

U.S. cereal maker WK Kellogg soared 30% after news that it would be acquired by Italian chocolate manufacturer Ferrero. Rare earth producer MP Materials skyrocketed 50% after reports that the U.S. Department of Defense invested $400 million in preferred shares, becoming its largest shareholder.

U.S. initial jobless claims came in below market forecasts. According to the U.S. Department of Labor, initial jobless claims for the week ending the 5th totaled 227,000 on a seasonally adjusted basis, falling short of the forecast of 235,000 and declining by 5,000 from the previous week.

According to the CME FedWatch Tool, the probability of the Fed cutting its benchmark interest rate by 0.25 percentage points in September is reflected at 63.9%.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell 0.16 points (1.00%) to 15.78.

Reporter Ko Jeong-sam, Hankyung.com jsk@hankyung.com