Wall Street indexes rose Thursday, with the S&P 500 and the Nasdaq Composite marking closing record highs, as investors shrugged off President Donald Trump's latest tariff moves, while investors were encouraged by an upbeat forecast from Delta Air Lines.

Delta shares rallied after the carrier forecast third-quarter and full-year profits above Wall Street estimates.

Investors celebrated across the sector with United Airlines and American Airlines also rallying. The Dow Transportation Index, widely considered an economic barometer, hit its highest since late February.

Nvidia's return to its $4 trillion valuation milestone for a second straight day was also a boost.

Initial jobless claims for the week of July 5 came in at 227,000, below consensus of 235,000, as per a Reuters poll. The number marked a seven-week low although data around holidays such as last week's July Fourth break can often be volatile.

The Delta update and the "pretty tame" jobless claims reassured investors, said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

"Collectively that helped to re-insert the risk-on mode that was in full bloom yesterday and carried over to today," the strategist said, adding that investors are "increasingly desensitized" to the potential threat to inflation and unemployment from tariffs.

"At the moment, investors are looking through or not accounting for that threat and won't likely until hard evidence presents itself," said Luschini.

According to preliminary data, the S&P 500 gained 16.44 points, or 0.26%, to end at 6,279.70 points, while the Nasdaq Composite gained 20.03 points, or 0.10%, to 20,631.37. The Dow Jones Industrial Average rose 189.27 points, or 0.43%, to 44,647.57.

Last week's robust labor market report had sent Wall Street's major indexes to record highs, a rebound from April's sharp sell-off following "Liberation Day" tariff announcements.

"You're checking off the uncertainty boxes. You had the big bill that was passed last week. That was a big uncertainty that has been checked off. You're starting to get more clarity on tariffs. It's not done yet but you're starting to get a little more clarity," said Chris Haverland, Global Equity Strategist, Wells Fargo Investment Institute as he noted the market's record levels.

"You'll have second quarter earnings season just getting started next week and you'll see how companies are managing through the tariffs."

Trump's latest announcements included a new 50% tariff on copper to start on August 1 and a threat of 50% tariff on exports of goods from Brazil to the U.S. He also issued tariff notices to other trading partners.

Yet, several countries are still waiting for official word from the White House, with investors closely monitoring the evolving trade negotiations.

Minutes from the Federal Reserve's June meeting, released Wednesday, revealed that most policymakers anticipate rate cuts this year, viewing the inflationary impact of tariffs as likely to be "temporary or modest."

While most investors believe a July rate cut is off the table, the odds of a September cut of 25 basis points have climbed to 64%, according to CME Group's FedWatch tool.

It may take until late this year — or even into 2026 — before the true impact of rising import tariffs on inflation comes into focus, St. Louis Fed President Alberto Musalem said, highlighting why Fed officials are cautious about rate cuts.

Among other stocks, WK Kellogg rallied sharply following reports that Italian candy maker Ferrero was nearing a deal to buy the cereal maker.

But Conagra Brands shares sank after it forecast annual profit below Wall Street expectations, citing higher tariff-related costs for products, including its Hunt's ketchup, due to levies on imports from China and on metals.