U.S. stocks hit new highs again! The S&P and Dow Jones both set records, with signs of market rotation emerging under the shadow of tariffs

According to Zhitong Finance APP, the U.S. stock market closed at a historic high on Thursday, with major indices showing a mixed performance influenced by tariff news and corporate earnings expectations. The S&P 500 index rose by 0.27%, with 9 out of 11 sectors achieving gains, particularly notable in the consumer discretionary and energy stocks, with over 350 constituent stocks closing in the green. The Dow Jones Industrial Average increased by 0.43%, just a step away from the historic high set last December, while the Nasdaq 100 index slightly fell by 0.16%. The airline sector was a highlight of the day, with Delta Air Lines (DAL.US) stock soaring by 11.99%, and United Airlines Holdings (UAL.US) also rising over 14.33%. Earlier, Delta Air Lines announced the restoration 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 firms. In contrast, packaged food giant ConAgra Brands (CAG.US) saw its stock drop by 4.37% due to fourth-quarter sales falling short of expectations. Rare earth materials supplier MP Materials (MP.US) experienced a single-day surge of 50.62%, marking its largest historical increase, following the company's agreement with the U.S. Department of Defense for a multi-billion dollar deal to build a magnet factory and expand rare earth production capacity. Uncertainty surrounding trade policies continues to escalate, as U.S. President Trump threatened to impose a 50% tariff on Brazil, citing domestic political affairs, marking the latest instance of his use of tariffs to achieve geopolitical goals. Meanwhile, Trump announced a 50% tariff on copper imports starting August 1 and unveiled a new round of tariff rate adjustments for multiple countries this week. Although the market is attempting to digest these policy signals, investors generally remain skeptical about the specifics of implementation. Strategists warn that this erratic tariff policy could weigh on the stock market. Tom Essaye, an analyst at Sevens Report, noted: "The likelihood of a clear tariff policy before August 1 is zero, which means a rate cut in July is no longer possible, and the actual impact is to lower the probability of a rate cut in September." He further analyzed that policy delays will lead to higher interest rates being maintained for a longer period, increasing the risk of economic slowdown. Goldman Sachs strategists also maintain a cautious stance, advising investors to avoid a one-sided allocation heavily skewed towards cyclical or defensive assets, believing that both directions carry risks. Signs of market rotation are becoming increasingly evident, with sectors that performed poorly in the first half of the year recently rebounding strongly, while stocks that led the way at the beginning of the year are gradually losing momentum. This style switch reflects investors seeking a balance between policy uncertainty and economic outlook, with the current market encompassing both optimistic expectations for consumer recovery and underlying concerns about escalating trade frictions