Tech Stocks Elevate Nasdaq to a New Peak
In the dynamic world of global trade, recent months have seen significant developments, particularly in the United States. As of July 2025, key agreements and negotiations have reshaped the landscape.
One of the notable developments is the Economic Prosperity Deal signed between the U.S. and UK on June 30, 2025. This agreement aims to reduce tariffs on British exports, notably in the automotive and aerospace sectors, and expand market access for U.S. agricultural products.
Similarly, a trade agreement was reached with Vietnam on July 2, 2025, where Vietnam agreed to new tariff rates, including a 20% tariff on its exports to the U.S., and a 40% tariff for products suspected of being transshipped from China.
A preliminary trade agreement was also reached with China on June 26, 2025, easing restrictions on rare earth exports from China and lifting certain U.S. export controls on Chinese products.
These ongoing negotiations and potential for new tariffs have significant implications for tech companies, especially Nvidia, which rely heavily on global supply chains. Tariffs can increase costs for components and materials sourced from countries facing these tariffs, leading to higher costs and reduced profit margins for Nvidia.
However, favorable trade agreements can improve market access and reduce tariffs for Nvidia products exported to countries with new deals, enhancing the company's competitiveness in markets like the UK and Vietnam.
Outside of trade talks, there have been other corporate developments. Pharmaceutical giant Merck is buying Verona Pharma, a UK company, in an approximately $10-billion deal. This news sent Verona shares jumping 20.6% and Merck shares rising 2.9%.
In the stock market, the S&P 500, Dow, and Nasdaq all saw gains in July. The Nasdaq composite closed 0.9% higher, setting a new all-time high. The S&P 500 rose 0.6% for its first gain this week, and the Dow added 0.5%.
Gains in technology and communication services stocks outweighed declines in energy and other sectors on Wednesday. Notable tech companies like Microsoft, Meta, and Google parent Alphabet saw gains, with Microsoft rising 1.4%, Meta gaining 1.7%, and Google adding 1.3%.
Despite these gains, Wall Street analysts predict that companies in the S&P 500 will deliver a combined 5% annual growth in second-quarter earnings. This growth rate would mark the lowest for the index since the fourth quarter of 2023.
Major U.S. carriers have trimmed their flight schedules and pulled their forecasts due to consumer uncertainty about Trump's tariffs. Delta Air Lines' second-quarter profit is expected to decline from a year ago.
The window for negotiations has been extended to Aug. 1 for more trade deals. The ongoing negotiations and potential for new tariffs continue to shape the global trade landscape and have significant implications for tech companies and the broader stock market.
- The ongoing negotiations and potential for new tariffs, particularly those impacting tech companies such as Nvidia, highlight the crucial role infrastructure plays in global business, as tariffs can significantly affect costs and competitiveness in international markets.
- In California, the tech industry is closely monitoring these developments, as they may influence the economy by shaping the competitiveness of local companies in both the domestic and international markets.
- As the U.S. government continues to negotiate trade deals, the evolution of technology and its integration into various sectors, including law, business, and the economy, becomes increasingly important in anticipating and adapting to the resulting changes in global trade.
