US Stock Market Summary for August 7, 2025: Mixed Reactions Amid Tariff News and Economic Updates

Market Overview

US stocks trimmed losses on Thursday, August 7, 2025, finishing mixed after President Trump's sweeping tariffs impacted numerous US trading partners. In a positive turn for tech, the Nasdaq Composite (^IXIC) rose nearly 0.4% to close at a fresh record, while the S&P 500 (^GSPC) remained largely unchanged. Conversely, the Dow Jones Industrial Average (^DJI) saw a decline, slipping 0.5%.

The uptick in stocks was partly due to Trump’s nomination of Stephen Miran, chairman of the Council of Economic Advisors, to the Federal Reserve Board of Governors, succeeding Adriana Kugler who resigned. His term is expected to last until January 31, 2026.

Trade Tariffs Impact

President Trump’s trade tariffs officially took effect at 12:01 a.m. ET on Thursday, affecting imports from nearly 200 countries with duties ranging from 10% to 50%. The overall average effective tariff rate is projected to soar to 18.6% this year—the highest since 1933, according to the Yale Budget Lab.

Amid these developments, Apple (AAPL) saw its shares climb after announcing a $100 billion investment in the US, which includes manufacturing cover glasses for iPhones and Apple Watches in Kentucky. Furthermore, Trump hinted at a potential exemption for certain companies from the proposed 100% duties on semiconductors, boosting shares of Nvidia (NVDA) by approximately 0.7%.

Corporate Earnings Highlights

This Thursday also brought a fresh wave of earnings reports. Toyota (TM), the world's largest automaker, warned that the US tariffs could cost the company around $9.5 billion in its first quarter. Meanwhile, Eli Lilly (LLY) suffered a shocking 14% drop after disappointing results from its highly-anticipated GLP-1 pill trial, regardless of the fact that they surpassed second-quarter earnings estimates.

The economic landscape further tightened as continuing claims for unemployment benefits climbed to 1.974 million, the highest level since November 2021, raising concerns over the labor market's recovery in the aftermath of a lackluster July jobs report.

Market Movements and Future Expectations

Gold prices also saw an upward trend, rising 0.6% to over $3,454 per ounce, lending credence to growing investor sentiments around potential Federal Reserve interest rate cuts in September amidst economic uncertainty.

Firefly Aerospace, trading under the ticker symbol FLY, opened at $70 per share—56% above their initial public offering price of $45. This strong debut attracted attention, as the market reflects increasing optimism for tech-oriented advancements.

Conclusion

As the US stock market navigates through changing economic conditions and trade policies, investors remain on high alert for further developments. The upcoming economic data releases and the ongoing adjustment of the Federal Reserve’s monetary policy will be crucial in shaping market dynamics moving forward.