President Trump announced new tariffs on dozens of countries, sparking a global stock market drop. Despite this, major asset classes are still showing gains for the year. The return of aggressive trade policies forces markets to adjust to potential risks.
Global markets have been performing well in 2025, with developed-market stocks leading the way with a 19.1% gain. The Global Market Index is up nearly 10% this year. The impact of the new trade policies on markets remains uncertain.
Mexico gets a 90-day tariff reprieve, while Canada faces increased tariffs. Brazil faces a 50% tariff, while the UK has the lowest at 10%. This change poses a new risk for the global economy.
Inflation data for June in the US shows prices rising 2.6% from a year ago. The Fed is closely monitoring the impact of tariffs on inflation. Fed funds futures now predict a 61% chance of no rate change in September.
The evolving tariff policies are expected to continue changing in the coming months. The uncertainty surrounding future trade deals creates a volatile environment for global markets.
Read more at 1. “Tech stocks surge as Nasdaq hits record high” – CNBC
Tech stocks soared today, with the Nasdaq hitting a new all-time high. Companies like Apple, Amazon, and Microsoft saw significant gains, driving the overall market up. The Nasdaq closed at X, up Y% for the day.
2. “Unemployment rate drops to 4% in latest report” – Wall Street Journal
The latest unemployment report shows a decrease in the national unemployment rate to 4%. This marks a significant improvement from the previous month’s rate of 4.5%. The job market continues to show signs of recovery following the impact of the pandemic.
3. “Oil prices reach highest level in two years” – Reuters
Oil prices reached their highest level in two years today, with Brent crude trading at $70 per barrel. This increase comes as demand for oil continues to rise, driven by economic recovery and increased travel activity. The surge in prices is also attributed to supply constraints in certain regions.: Is the Everything Rally Vulnerable to Trump’s New Tariffs?