On Tuesday, the New York stock market exhibited a mixed trend, taking a breather.
The S&P 500 index, which broadly reflects the market, ended slightly lower after fluctuating, as Goldman Sachs and Bank of America (BofA) raised their target prices.
Meanwhile, Nvidia surpassed 160 USD for the first time, bringing its market capitalization a step closer to 4 trillion USD.
Mixed Trends
The three major indices of the New York stock market ended with mixed results.
The Dow Jones Industrial Average, composed of 30 large-cap stocks, closed at 44,240.76, down 165.60 points (0.37%) from the previous session.
The S&P 500 fell by 4.46 points (0.07%) to close at 6,225.52.
Only the tech-heavy Nasdaq saw a slight increase, closing slightly higher. The Nasdaq rose by 5.95 points (0.03%) to 20,418.46.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), Wall Street’s fear gauge, fell by 0.98 points (5.51%) to 16.81.
TACO
U.S. President Donald Trump’s remarks on tariffs pressured market sentiment on this day.
The previous day, Trump notified 14 countries, including South Korea and Japan, of reciprocal tariff rates that would be applied starting August 1. On this day, he proposed expanding tariffs to specific items such as semiconductors, copper, and pharmaceuticals.
He also made it clear that the August 1 deadline would not be extended again.
However, the market impact was not significant.
Investors largely ignored this threat, believing in the TACO (Trump Always Chickens Out) theory, which posits that Trump always backs down at the last minute.
Nvidia Breaks 160 USD
Nvidia, which dominates the artificial intelligence (AI) semiconductor market, broke through the 160 USD mark for the first time.
Nvidia closed at 160.00 USD, up 1.76 USD (1.11%), resuming its record-setting rally after a decline the previous day.
Its market capitalization exceeded 3.90 trillion USD on the day.
Nvidia now needs to rise just 3.93 USD (2.46%) more to become the first company to join the 4 trillion USD market cap club.
Tesla, Concerns Over Musk’s New Party Continue
Tesla rebounded on Tuesday, recovering some of the 6.8% plunge from the previous day.
Tesla closed at 297.81 USD, up 3.87 USD (1.32%).
However, it has not entirely shaken off the shock from CEO Elon Musk’s announcement of forming a new political party.
Tesla’s intraday gains exceeded 3.4%, rising above 304 USD, but it later gave up more than half of those gains.
Concerns that Musk’s political moves will continue to impact Tesla’s stock price in the short term negatively capped its upward momentum.
Morgan Stanley analyst Adam Jonas, a prominent Tesla bull, maintained a buy recommendation and a target price of $ 410 in his analysis note on Tuesday, advising clients to prepare for increased short-term volatility.
Jonas warned that while the situation remains fluid, if Musk prioritizes politics, he could become neglectful of his duties at Tesla, which could lead to a further decline in Tesla’s stock price in the short term.
