\n While stocks dropped on Friday, global markets had largely shrugged off Trump\u2019s tariff threats this week. The S&P 500 and Nasdaq closed at record highs on Thursday despite Trump announcing a 50% tariff on Brazil<\/a> the day before.\n <\/p>\n \n With stocks at record highs and trade uncertainty lingering, investors are divided on whether markets are complacent or there is room to push higher.\n <\/p>\n \n Trump on Thursday said in an interview with NBC News that tariffs on other US trading partners could also jump higher, citing the stock market\u2019s strength. \u201cI think the tariffs have been very well-received,\u201d he said. \u201cThe stock market hit a new high today.\u201d\n <\/p>\n \n Investors are increasingly nonchalant about Trump\u2019s tariff threats, Steve Sosnick, chief strategist at Interactive Brokers, said in a note. It is yet to be seen whether embracing the \u201cTACO trade<\/a>\u201d \u2014 betting that \u201cTrump always chickens out\u201d \u2014 could prove profitable or set investors up for loss.\n <\/p>\n \n \u201cThe blas\u00e9 attitude once again stems from traders\u2019 perception that tariff discussions remain flexible,\u201d Sosnick said. \u201cHeck, a lot of money has been made by traders betting on tariff malleability \u2014 why should they reverse course now?\u201d\n <\/p>\n \n While Trump has unveiled widespread new tariffs, some investors are calling the president\u2019s bluff<\/a>, betting the Trump administration is seeking negotiations by pushing the tariff deadline to August 1. But it remains a gamble whether Trump will walk-back or levy his most disruptive tariffs \u2014 including a 50% tariff on copper<\/a>.\n <\/p>\n \n \u201cWe could be setting up situations where highly sanguine investors might be forced to once again reckon with revised earnings guidance and the eventual implementation of tariffs,\u201d Sosnick added.\n <\/p>\n \n \u201cUnfortunately I think there is complacency in markets, and (they are) a little desensitized,\u201d Jamie Dimon, CEO at JPMorgan Chase, said Thursday during an event in Dublin.\n <\/p>\n \n The announcement of a 35% tariff on Canada sent stocks lower, although losses were relatively contained compared to the tariff turmoil<\/a> of March and April.\n <\/p>\n \n It\u2019s unclear whether the new tariffs would apply to all Canadian goods. An administration official said the expectation was that imports the United States currently taxes at 25% would rise to 35%, but that those exempted by the US-Mexico-Canada free trade agreement would continue to be exempted.\n <\/p>\n \n \u201cThe stock and bond markets barely reacted to the most recent headlines on tariffs,\u201d analysts at Bank of America said in a note. \u201cThe predominant view is that eventually things will settle at reasonable levels, some deals will be sealed and this round of negotiation can be ignored as it will not be disruptive.\u201d\n <\/p>\n \n Other factors have come into focus for investors, too, including the start of earnings season for the second quarter. Economic data has also been relatively strong<\/a> in recent months, helping support the market rally.\n <\/p>\n \n \u201cOur view remains that tariffs will cause near term uncertainty and volatility, but should have only a limited impact in the medium term,\u201d Mohit Kumar, chief economist and strategist for Europe at Jefferies, said in a note.\n <\/p>\n \n To other investors, however, concerns linger about a hit to economic growth and business activity.\n <\/p>\n \n \u201cMarkets should not dismiss Trump\u2019s latest statements and that the next actual moves on tariffs are likely to be up,\u201d Sarah Bianchi, senior managing director at Evercore ISI, said in a note.\n <\/p>\n \n \u201cTrump frustrated with pace of dealmaking and feeling good about recent victories at home and abroad,\u201d Bianchi said. \u201cWith markets at highs \u2014 more likely to lean into imposing tariffs.\u201d\n <\/p>\n \n The S&P 500 and Nasdaq have pushed higher despite renewed tariff threats, buoyed by companies like Nvidia that have soared to record highs.\n <\/p>\n \n Nvidia (NVDA<\/a>) on Thursday gained 0.75% and closed above $4 trillion in market value, making it the first publicly traded company to reach that milestone. Nvidia gained 0.5% on Friday, hitting a fresh record high and extending those gains.\n <\/p>\n \n \u201cUltimately, as we saw in April, selling stocks or getting too defensive could put you on the wrong side of a no-looking-back, mega-rally,\u201d Ross Mayfield, an investment strategist at Baird, said in a note. \u201cHeadline volatility is here to stay but that doesn\u2019t preclude further market gains.\u201d\n <\/p>\n \n Market gains have been driven by AI and tech stocks, according to Adam Turnquist, chief technical strategist at LPL Financial.\n <\/p>\n \n Just five stocks \u2014 Nvidia, Microsoft, Meta, Broadcom and Amazon \u2014 have contributed over half of the S&P 500\u2019s returns across the past month, according to Turnquist.\n <\/p>\n \n \u201cBreadth is a little underwhelming,\u201d he said, noting the median S&P 500 company is trading about 12% below its peak in the past year.\n <\/p>\n \n As of July 10, the Magnificent Seven tech stocks \u2014 Amazon, Alphabet (Google\u2019s parent company), Apple, Meta, Microsoft, Nvidia and Tesla \u2014 accounted for 32.6% of the S&P 500\u2019s market value, according to S&P Dow Jones Indices.\n <\/p>\n \n Wall Street\u2019s fear gauge, the CBOE Volatility Index, has also dropped significantly<\/a> since April as markets have embraced relative calm. The VIX on Friday traded around 16 points, compared to trading above 50 points in early April.\n <\/p>\n \n Bitcoin briefly rose above $118,000 on Friday, smashing through previous records. Bitcoin has surged more than 9% in the past seven days and is up almost 25% this year. The world\u2019s largest cryptocurrency by market value has topped new records as investors have embraced a risk-on attitude.\n <\/p>\n![\"Global](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/07\/gettyimages-2224106099.jpg\")
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