For the week ending July 11, 2025, the global economy was significantly impacted by escalating U.S. trade tensions, as President Trump initiated new tariff rates, with a 90-day pause expiring and new 50% tariffs on copper imports, and threats of higher rates on Canadian, Japanese, and South Korean imports. This led to currency volatility, with the Japanese Yen plummeting 1.5% against the dollar after failing to secure a trade deal, and copper prices surging on tariff fears. Despite initial declines due to these threats, the U.S. stock market demonstrated resilience, with the S&P 500 ending near record highs and the Nasdaq soaring to new record highs, driven by tech-loving dip buyers. Major corporate highlights included Nvidia (NVDA) becoming the first company to reach a $4 trillion market capitalization, fueled by AI optimism, while Tesla (TSLA) shares plummeted 6.8% after Elon Musk announced forming a new political party. An uptick in June inflation to 2.7% year-over-year dampened hopes for an immediate Federal Reserve interest rate cut in July, suggesting the market may continue to be choppy through 2025 due to ongoing tariff uncertainties and interest rate speculation.
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