US stocks reach new highs again! S&P and Dow Jones hit record highs, signs of market rotation emerge under the shadow of tariffs.

The US stock market closed at a record high on Thursday, with major stock indexes showing a mixed trend influenced by tariff news and company earnings expectations. The S&P 500 rose 0.27%, with 9 out of 11 sectors posting gains, especially in non-essential consumer goods and energy sectors, with over 350 component stocks closing in the green. The Dow Jones Industrial Average rose 0.43%, nearing its historic high set in December last year, while the Nasdaq 100 index fell slightly by 0.16%. The aviation sector was the highlight of the day, with Delta Air Lines, Inc.(DAL.US) soaring 11.99% and United Airlines Holdings, Inc. (UAL.US) also rising over 14.33%. Prior to this, Delta Air Lines, Inc. announced the resumption of its full-year profit forecast and revealed that passenger numbers are on the rise, which in turn boosted the stock prices of travel-related companies and car rental companies. On the other hand, packaging food giant Conagra Brands, Inc. (CAG.US) saw its stock price drop by 4.37% as its fourth-quarter sales fell short of expectations. Rare earth materials supplier MP Materials (MP.US) saw its stock price skyrocket by 50.62%, achieving the largest single-day gain in its history, after reaching a multi-billion dollar agreement with the US Department of Defense to build a new magnet factory and expand rare earth production capacity. Trade policy uncertainty continues to escalate, with President Trump threatening Brazil with a 50% tariff on the grounds of domestic political affairs. This is the latest case of Trump achieving political goals through tariffs, with the recent announcement of a 50% tariff on copper imports starting from August 1st and a new round of tariff rate adjustments for multiple countries this week. While the market is trying to digest these policy signals, investors remain skeptical about the specific implementation details. Strategists warn that this unpredictable tariff policy may impede the stock market. Analyst Tom Essay of Sevens Report pointed out, "The possibility of clearly defined tariff policies before August 1st is zero, which means a rate cut in July is no longer possible, effectively reducing the probability of a rate cut in September." He further analyzed that policy delays will lead to high rates being maintained for a longer time, increasing the risk of economic slowdown. Goldman Sachs Group, Inc. strategists also adopt a cautious attitude, recommending investors to avoid biased allocations towards cyclical or defensive assets, noting risks in both directions. Signs of market rotation are becoming more apparent, with sectors that underperformed in the first half of the year showing strong rebounds, while the stocks that led the way at the beginning of the year are gradually losing strength. This style switch reflects investors seeking a balance between policy uncertainty and economic outlook, with both optimistic expectations for consumer recovery and hidden concerns about escalating trade tensions present in the current market.