Stock Market News Review: SPY, QQQ Stumble as Trump Announces New Tariffs, Pressures Powell to Resign
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The market took a turn lower after President Trump announced that more countries would soon receive letters detailing their updated tariff rates. He also said that the August 1 tariff pause deadline would not be extended. So far, the U.S. has sent letters to 14 countries.
Trump is also considering a steep tariff on copper imports. 'I believe the tariff on copper, we're going to make it 50%,' said Trump during a Cabinet meeting. Afterward, copper futures surged higher by 17%, marking the highest intraday rise in 37 years. Commerce Secretary Howard Lutnick added that the tariff could be implemented either later this month or on August 1.
If 50% wasn't high enough, Trump announced that he may tariff pharmaceutical imports at a 200% rate. 'They're going to be tariffed at a very, very high rate, like 200%,' warned Trump. The tariffs would begin in a year to a year and a half in order to give pharmaceutical companies time to set up shop in the U.S. In addition, Trump also has plans for tariffs on semiconductors and other goods.
In a Truth Social post, Trump criticized Fed Chair Jerome Powell for 'whining like a baby about non-existent Inflation for months, and refusing to do the right thing.' Trump added that import prices have fallen lower, citing a study from the Council of Economic Advisers (CEA).
Earlier in the day, Trump said that Powell ' should resign immediately.' He also said that he wouldn't be opposed to Congress investigating Powell over the Fed's $2.5 billion Washington, D.C. headquarters renovation.
To end on an optimistic note, Goldman Sachs (GS) raised its 2025 SPX price target to 6,600 from 6,100. Bank of America (BAC) tagged along and hiked its target to 6,300 from 5,600.
The S&P 500 (SPX) closed with a 0.07% loss while the Nasdaq 100 (NDX) inched higher by 0.07%.
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