Trump claimed full credit on Thursday for the rally in crypto, tech stocks, and Nvidia, just as Wall Street recorded another round of record highs.
In a post on Truth Social, the president wrote:
“Tech Stocks, Industrial Stocks, & NASDAQ, HIT ALL-TIME, RECORD HIGHS! CRYPTO, ‘Through the Roof!’ NVIDIA IS UP 47% SINCE Trump Tariffs. USA is taking in Hundreds of Billions in Tariffs. COUNTRY is now ‘BACK.’ A Great Credit! Fed Should Rapidly Lower rate to Reflect this Strength. USA Should be at the ‘TOP of the List.’ NO INFLATION!!!”
According to data from CNBC, the Dow Jones Industrial Average surged by 217 points, equal to a 0.5% gain. The S&P 500 rose 0.2%, and the Nasdaq Composite set a new record right after opening, though it hovered around the flatline by press time. The movement followed Trump’s announcement of new trade tariffs, which included a 50% duty on imported copper set to begin on August 1.
Trump slaps tariffs on Brazil and 21 other countries
Trump also imposed a 50% tariff on Brazil, stating that it was partly a response to the legal proceedings against former Brazilian president Jair Bolsonaro, who is on trial for allegedly trying to overturn the 2022 election. He said the measure also addressed a “very unfair trade relationship” and claimed that trade between the two countries had been “far from Reciprocal.”
Brazilian President Luiz Inacio Lula da Silva responded to the move by saying Brazil would take action using its economic reciprocity law. Markets reacted immediately. The iShares MSCI Brazil ETF (EWZ) dropped by 2% following the news.
But the tariffs didn’t stop with Brazil. Before those announcements, Trump had already sent out formal letters to at least seven other countries with details of new tariffs. Earlier in the same week, letters had also been sent to the leaders of 14 additional countries, including Japan and South Korea, laying out more trade duties, all scheduled to go into effect on August 1.
Despite the rising tensions in global trade, U.S. investors didn’t pull back. Instead, markets climbed to new highs, recovering losses from the spring. Bitcoin crossed a new all-time high of $112,259. Nvidia jumped nearly 2% on the day and briefly reached a $4 trillion valuation, becoming the first public company in history to do so. Trump linked the company’s 47% growth to his tariff policy.
Jobs and inflation raise new questions
The Labor Department reported that initial unemployment claims fell by 5,000 last week to a seasonally adjusted 227,000, beating the Dow Jones estimate of 235,000. That drop suggests that layoffs are still low.
But continuing claims, which track people still receiving benefits, rose to 1.96 million, climbing 10,000 to the highest level since November 13, 2021. That increase shows that long-term unemployment is still growing even as fewer new claims are being filed.
At the same time, Bank of America warned that inflation could rise again soon. Stephen Juneau, an economist at the bank, wrote: “We expect inflation to accelerate over the coming months in large part due to tariff-related price increases. But tariffs aren’t the only reason to expect firmer inflation in the coming months; the rebound in stock prices is another.”
KEY Difference Wire : the secret tool crypto projects use to get guaranteed media coverage
