Stock Market: Nasdaq Hits New Peak Levels
In the midst of July 2025, the global trade landscape is characterised by a blend of intense tariff negotiations, significant agreements, and ongoing uncertainty. Notable developments include the US-China truce and the US-UK trade deal, yet there remains a cloud of uncertainty with other countries.
A recent trade truce between the US and China, following intensive talks in London, is pending final approval from both nations' leaders. Key points include China supplying rare earth magnets upfront to the US, while the US has agreed to maintain tariffs on Chinese goods at 55%. China’s tariffs remain at 10%. Both sides have pledged to adhere to the agreement, signaling a hopeful easing of what has been a turbulent trade relationship.
The US and UK have also finalized a trade deal, indicating momentum towards strengthening ties with key partners.
President Trump’s administration imposed high “reciprocal” tariffs of up to 50% on goods from nearly every country in April 2025, but temporarily paused these increases with a July 9 deadline looming. The administration has acknowledged it may only finalize a smaller set of around 10-12 trade deals among the 18-20 key trading relationships by September, with others facing punitive tariffs through letters rather than negotiated deals. European Union tariffs and retaliatory duties have been delayed but remain in the background.
The trade tensions and tariff announcements have caused volatility in the US stock markets over the past months. Sharp tariff fluctuations, especially those affecting major trading partners like China and the EU, have roiled investor confidence. Markets have reacted negatively to tariff escalations due to fears of supply chain disruptions, increased costs for manufacturers and consumers, and slower economic growth globally. Conversely, the announcement of trade deals such as the US-China truce and the US-UK agreement brought some relief and positive momentum.
The Dow Jones Industrial Average, composed largely of industrial and multinational companies, has been sensitive to trade news, seeing dips during tariff escalations and partial recoveries on deal announcements. The S&P 500, with its broad market representation including tech and industrials, has shown notable volatility but remains pressured by concerns over trade-driven inflation and slowing global growth. The Nasdaq Composite, tech-heavy and reliant on global supply chains, has been among the most volatile, as tariffs on components and raw materials impact tech manufacturing costs and earnings expectations.
In summary, the global trade landscape in mid-2025 is marked by a mix of achieved trade deals (notably US-China and US-UK), continuing tariff threats, and ongoing negotiations with other countries. These developments have contributed to market volatility, with major US stock indices reacting sharply to tariff announcements and trade deal news, reflecting investor uncertainty about the future trade environment.
[1] New York Times. (2025). US-China Trade Truce Reached in London. [online] Available at: https://www.nytimes.com/2025/07/01/business/us-china-trade-deal.html
[2] Bloomberg. (2025). US-UK Trade Deal Finalized. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-02/us-uk-trade-deal-finalized
[3] CNBC. (2025). Trump Administration Aims for 10-12 Trade Deals by September. [online] Available at: https://www.cnbc.com/2025/06/30/trump-administration-aims-for-10-12-trade-deals-by-september.html
- In the midst of this volatile global trade landscape, several communities are reviewing their respective policies to mitigate the potential impact on employment, given the ongoing tariff negotiations and uncertainties.
- Financial analysts and investing groups are closely monitoring the stock-market trends as they evaluate the prospects of new trade agreements and the possible effects on various industries' employment policies and growth projections.
