American market ended thursday in positive territory

The American stock market closed Thursday, July 10, with moderate gains, showing resilience amidst the evaluation of corporate reports, Federal Reserve publications, and fresh labor market data.

FRS protocols and prospects for rate cuts

Market participants' attention was drawn to the recently published protocols from the June meeting of the Federal Open Market Committee (FOMC). The document indicated that most Federal Reserve leaders consider it appropriate to lower the benchmark interest rate this year. This statement strengthened market expectations for monetary policy easing, which is traditionally seen as a positive factor for stock markets.

Notably, some meeting participants expressed willingness to consider a rate cut as early as July if macroeconomic data confirmed their forecasts. This points to a divergence of opinions within the Fed, but the overall sentiment for a rate reduction this year remains prevalent.

Labor market dynamics and trade conflicts

In addition to the Fed protocols, investors also analyzed fresh labor market data. The US Department of Labor reported that the number of initial jobless claims last week decreased by 5,000, reaching 227,000. This is a seven-week low and significantly better than analysts' average expectations, who had forecast the figure at 235,000. A strong labor market continues to support the economy, but some experts express concern about the potential impact of trade conflicts.

For instance, US President Donald Trump announced the imposition of a 50 percent tariff on all goods from Brazil starting August 1. This decision could put pressure on global trade relations, although European Commissioner for Trade Maroš Šefčovič reported significant progress in negotiations between the European Commission and Washington on a framework agreement, suggesting the possibility of concluding a trade deal in the coming days.

The head of the Federal Reserve Bank of St. Louis, Alberto Musalem, noted that the full impact of increased import duties on inflation might only be seen by the end of the current year or even early next year.

Corporate news

The corporate sector presented mixed results, which also influenced the performance of individual stocks:

• Delta Air Lines showed an impressive 12% stock increase. The airline reported a significant rise in net profit in the second quarter of 2025, exceeding market expectations for adjusted earnings and revenue.
• Conagra Brands fell by 4.4%. Despite recording a net profit in the fourth fiscal quarter, the food manufacturer failed to meet revenue forecasts, disappointing investors.
• WK Kellogg became the day's standout, surging 30% on news of its acquisition by Italian chocolate and confectionery maker Ferrero for $3.1 billion.
• Nvidia Corp. continued its upward trend, gaining 0.8%. The day before, the chipmaker's shares had risen by 1.8%, and its market capitalization briefly exceeded $4 trillion, highlighting the growing demand for AI chips.

Overall, Thursday brought moderate positive sentiment to the American stock market, supported by expectations of a Fed rate cut, strong labor market data, and some bright corporate news. However, investors remain vigilant, monitoring the evolution of trade relations and their potential impact on inflation.