The Nasdaq soared to a new record on Wednesday, and key European markets also ended higher, even as U.S. President Donald Trump continued to expand his list of tariff threats.

Trump Expands Tariff Threats

On Wednesday afternoon, Trump sent new tariff warning letters to seven more countries. Later the same day, he threatened a harsh 50% tariff on Brazil.

Unlike his usual economic reasoning, this time Trump linked the tariff to Brazil's legal case against its former president Jair Bolsonaro, who is being investigated for trying to overturn the 2022 election loss to President Luiz Inácio Lula da Silva.

Trump had spent the previous week lobbying Congress for his fiscal agenda. But now, he has returned aggressively to tariffs, targeting not just Brazil, but countries like Japan, South Korea, and others.

More Tariffs on the Way

Earlier in the week, Trump said he was considering a 50% tariff on copper imports and hinted at 200% tariffs on pharmaceuticals.

This copper announcement pushed copper prices to a record high on Tuesday, as copper is widely used in cars, construction, and electronics.

Markets Not Reacting Strongly

Despite Trump’s aggressive tone, financial markets remained calm.

Kathleen Brooks, research director at XTB, said, “The market is not taking Trump at his word when it comes to tariffs, and the market impact has been limited so far.”

The Nasdaq Composite Index climbed 0.9%, reaching a fresh record. Nvidia, a key artificial intelligence company, even touched a $4 trillion market value before retreating slightly.

Market analyst Patrick O’Hare from Briefing.com said, “The market is certainly not acting as if it’s fearing the tariffs... The market is operating on the assumption that they are just negotiating tools and that, ultimately, better terms will be reached.”

European stocks also gained. Germany’s DAX and France’s CAC 40 rose 1.4% each. London’s FTSE 100 added nearly 0.2%.

However, analyst Chris Beauchamp from IG warned that Trump’s delay tactics could be risky. He noted, “Reports suggesting that Trump relishes the actual dealmaking process more than an actual resolution seem to suggest that a further delay to tariffs will be forthcoming, although this is an approach fraught with risk.”

Asian Markets Show Mixed Results

In Asia, Tokyo’s Nikkei 225 rose slightly. But Hong Kong and Shanghai ended lower, showing mixed sentiment across the region.

Market Snapshot (as of 2130 GMT)

• New York – Dow Jones: ↑ 0.5% at 44,458.30

• S&P 500: ↑ 0.6% at 6,263.26

• Nasdaq Composite: ↑ 0.9% at 20,611.34

• London – FTSE 100: ↑ 0.2% at 8,867.02

• Paris – CAC 40: ↑ 1.4% at 7,878.46

• Frankfurt – DAX: ↑ 1.4% at 24,549.56

• Tokyo – Nikkei 225: ↑ 0.3% at 39,821.28

• Hong Kong – Hang Seng: ↓ 1.1% at 23,892.32

• Shanghai Composite: ↓ 0.1% at 3,493.05

Currency and Oil Updates

• Euro/Dollar: ↓ at $1.1719

• Pound/Dollar: ↓ at $1.3590

• Dollar/Yen: ↓ at 146.30

• Brent Crude: ↑ 0.1% at $70.41 per barrel

• WTI Crude: ↑ 0.1% at $68.38 per barrel