US stocks rose to eke out fresh record highs on Thursday, as Nvidia (NVDA) ticked higher following a major milestone and bitcoin (BTC-USD) surged to a new record amid fresh tariff threats from President Trump.
The Dow Jones Industrial Average (^DJI) rose around 0.6% on the heels of a winning day for the major gauges. Meanwhile, the S&P 500 (^GSPC) added about 0.4% to close at a fresh record of 6,280.46, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.2%, to notch its second straight all-time high.
AI chipmaker Nvidia edged higher to close just above $4 trillion market cap, after becoming the first public company to ever cross the threshold.
Meanwhile, bitcoin vaulted to a fresh all-time high, breaking above $113,000 as investors went risk-on across assets.
Markets were making sense of Trump's latest salvos on tariffs, which have done little to sap the ebullient mood that has pervaded for more than two months. After Wednesday's market close, Trump issued his most stringent threat yet, threatening Brazil with rates of 50% on its imports.
Meanwhile, Delta (DAL) kicked off second quarter earnings season with its report. Shares of the airline jumped 12% as the carrier restored its earnings outlook, citing “greater clarity” as trade deals get done.
Market focus remains on potential trade pacts with bigger US trading partners, such as the EU, India, and Canada. While Trump has said a pact with India is close, the odds have narrowed after he warned of an extra 10% tariff on BRICS members.
Read more: The latest on Trump's tariffs
Amping up the pressure for deals, Trump has sent 22 letters to the heads of countries this week. Each has a similar formula, dictating the tariff rates he says will apply to their imports starting Aug. 1.
In other news, jobless claims for the week ending July 5 were 227,000, a 5,000 decline from the previous week's revised level. The update comes as investors look for signs of how quickly the labor market is cooling as an indication of when the Federal Reserve will move to cut rates.
LIVE 23 updates
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MP Materials soars after $400 million defense department investment
Shares of rare earths miner MP Materials (MP) skyrocketed about 45% in mid-afternoon trade on Thursday following news that the US Department of Defense has agreed to purchase $400 million of preferred stock in the company, becoming its largest shareholder.
According to the Pentagon, rare earths, used in everything from electric vehicles to advanced military equipment, are “needed to manufacture the permanent magnets used in important US military weapons systems.”
The purchase reflects growing concerns over supply chain vulnerabilities, especially as tensions between the US and China persist. Rare earths have become a key sticking point in trade negotiations between the two countries.
China accounted for approximately 70% of US rare earth imports in 2023, according to the US Geological Survey. Members of the Trump administration have framed the deal as a strategic move to reduce dependence on Beijing and strengthen national security.
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Jobless claims report shows why Fed rate decision is complicated
New government data showed that weekly jobless claims unexpectedly fell during the week ended July 5. But a deeper look shows a more mixed picture.
Initial jobless claims came in at 227,000, a decline of 5,000 from the previous week's revised level. Analysts were expecting 235,000 claims, per Reuters. Meanwhile, continuing claims, which lag the headline data by a week, ticked up to 1.97 million.
Investors have been closely watching labor market data for clues on when the Fed could next cut interest rates. The central bank is weighing its dual mandate of price stability versus full employment. While the labor market doesn't appear to be cooling significantly yet, some cracks have emerged.
As of Thursday morning, investors were placing a 93% chance on the Fed holding rates steady at its July meeting. The probability of that scenario was 30% for its September meeting.
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