Unfazed by tariffs and headwinds, TSMC rises over 1% in pre-market trading, UK stock market hits all-time high, copper prices end five consecutive declines

As the U.S. stock market approaches historical highs, the sudden tariff actions by the Trump administration have triggered short-term fluctuations in the market. However, strong corporate earnings expectations and enthusiasm for artificial intelligence are helping investors digest the uncertainties of trade policies and maintain an overall optimistic stance on risk assets.

On Wednesday, according to CCTV News, U.S. President Trump proposed a series of new tariff demands, including a 50% tariff on Brazil and confirmed a 50% tariff on copper imports starting next month. This news led to a slight decline in U.S. stock futures but did not overturn the overall upward trend in the market.

Before the U.S. market opened, Taiwan Semiconductor rose over 1%, with the company's second-quarter sales exceeding expectations. The S&P 500 futures dipped 0.1%, after the benchmark index had closed near its historical peak. The European Stoxx 600 index rose 0.6%, marking the longest four-day consecutive gain in over a month. Asian stock markets also rose, indicating a relatively mild reaction from the global market to the tariff news.

Traders seem to be waiting for new catalysts to push U.S. stocks to new highs. Analysts believe that although concerns about trade policies persist, investors are currently more focused on economic fundamentals and corporate earnings prospects, thereby weakening the overall impact of tariffs on the market.

• Before the U.S. market opened, Taiwan Semiconductor rose over 1%, with the company's second-quarter sales exceeding expectations.
• The Euro Stoxx 50 index opened up 0.3%, the German DAX index rose 0.45%, and the UK FTSE 100 index reached a historical high, rising over 1% during the day. The French CAC 40 index rose 0.4%.
• The yield on the 10-year U.S. Treasury rose 1 basis point to 4.35%.
• The yield on the 10-year German government bond remained largely unchanged at 2.67%.
• The U.S. dollar exchange rate remained stable with little change. The euro to dollar exchange rate was nearly unchanged at 1.1728 dollars.
• The yen to dollar exchange rate changed slightly, reported at 146.39.
• Copper prices on the London Metal Exchange (LME) rose 0.4%, ending a previous five-day decline.
• Bitcoin rose 0.6% to 111423.79 dollars.
• Brent crude oil fell 0.3% to 69.98 dollars per barrel.
• Spot gold rose 0.4% to 3325.35 dollars per ounce.

Tariff Impact Weakens, Earnings Become Key

Analysts point out that the market's sensitivity to tariff news has decreased. Signs of sustained economic growth, confidence in the upcoming earnings season, and optimism in the field of artificial intelligence are collectively providing investors with the impetus to push the stock market higher.

“For us, the key driver of stock returns has always been corporate earnings, especially in the IT sector, and policy and trade uncertainties have not caused significant damage in this regard,” said Marija Veitmane, Senior Multi-Asset Strategist at State Street Global Markets She believes that the market's sensitivity to tariffs has decreased.

Copper prices on the London Metal Exchange (LME) rose by 0.4%, ending a previous five-day decline. In the New York market, copper prices increased by 2.1%, with a cumulative increase of over 11% since Trump first proposed the scale of tariffs on Monday.

Tech stocks lead the way, strategists suggest buying on dips

The strong performance of tech stocks is an important pillar supporting market confidence. In pre-market trading, Nvidia's stock price rose by 0.5%, briefly reaching a market capitalization of $4 trillion on Wednesday. Tesla's stock price also increased by 0.8%.

In the face of short-term fluctuations caused by tariffs, some market strategists believe this is precisely an investment opportunity. Mohit Kumar, Chief European Strategist at Jefferies International, pointed out that investors should consider taking advantage of market declines to increase risk positions:

"Tariffs will indeed cause volatility and uncertainty, but they should not have a significant impact on the market in the medium term. Our fundamental judgment remains that risk assets will slowly rise."