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Brazilian real surges, stocks edge higher as investors weigh Trump’s latest tariffs

Investors weighed the latest trade announcements by U.S. president Donald Trump on Thursday. The Brazilian real recovered from its losses after Trump announced a 50% tariff against goods from Brazil.

Delta Air Lines, which helped Wall Street stocks rise 12% after forecasting profits for the third quarter and the full year above analyst's estimates, jumped. United Airlines and other travel stocks rose as well, with United Airlines up 15.3%.

Trump confirmed late Wednesday that a 50% copper tariff will be implemented, with effect from August 1. The last time U.S. Copper prices rose on the day was late Wednesday.

On Wednesday, the Brazilian real's volatility gauges reached their highest level since late April and the real fell as much as 2,3%. The dollar fell 0.6% last Thursday against the real while Brazilian stocks dropped about 0.5%.

Brazilian President Luiz inacio Lula da silva vowed to retaliate against unilateral tariff increases and called for a ministerial meeting on Thursday.

Some traders believe that U.S. consumer prices could increase dramatically on staples such as coffee and orange juice, if the Administration sticks to its Brazil Import Plan.

The market's reaction to Trump’s recent moves has been milder than it was in April. This could be because investors are hoping that the ongoing trade negotiations between Washington, D.C. and its trading partners will result in an agreement before the deadline.

Investors are also preparing for the second-quarter earnings and looking for any signs of impact from Trump's Trade War launched on April 2.

Bruce Zaro of Granite Wealth Management, Plymouth, Massachusetts said that the market appeared to be in a hold pattern before the S&P 500 company reports.

JPMorgan Chase will release its results on Tuesday, which is essentially the start of the reporting period.

He said that there was a lot of skepticism among the analysts who follow the S&P 500. They've all been reducing their estimations based on tariffs and the uncertainty surrounding that.

"But, we believe, after all, that those tech companies and growth companies will come up with fantastic earnings." I believe the market is still in a period of waiting.

The Dow Jones Industrial Average grew by 259.72 points or 0.59% to 44,718.67. The S&P 500 rose by 21.75 points or 0.35% to 6,285.02 while the Nasdaq Composite climbed 34.47 points or 0.17% to 20,645.81.

The MSCI index of global stocks rose by 2.70 points or 0.29% to 927.00. The pan-European STOXX 600 ended up with a 0.54% gain.

Bitcoin

Rallyes

Another all-time record. The largest cryptocurrency in the world has reached a new record high of $113.734.64. The price is up 21% so far this year.

Investors digested the upbeat quarterly results of TSMC, which showed strong interest in artificial-intelligence applications, fueled by strong demand for TSMC's products.

The dollar index measures the greenback in relation to a basket including the yen, the euro and other currencies.

The index rose by 0.28%, to 97.65.

Benchmark 10-year U.S.

Treasury yields

Investors focused on the impact of tariffs on inflation in advance of next week's key consumer price data.

U.S. crude oil fell $1.81, settling at $66.57 per barrel. Brent settled at $68.64 a barrel, down by $1.55.

(source: Reuters)