Wall Street moves lower as Trump's tariff deadline nears
The S&P 500 was 0.5% lower as trading resumed in the U.S. following a holiday-shortened week. The benchmark index remains near its all-time high set last week.
The Dow Jones Industrial Average was down 217 points, or 0.5%, as of 10:49 a.m. Eastern time, and the Nasdaq composite was 0.6% lower.
Bond yields mostly rose. The yield on the 10-year Treasury rose to 4.38% from 4.34% late Thursday.
Tesla tumbled 6.9% for the biggest drop among S&P 500 stocks as the feud between CEO Elon Musk and President Donald Trump reignited over the weekend. Musk, once a top donor and ally of Trump, said he would form a third political party in protest over the Republican spending bill that passed last week.
Wall Street was watching for developments in the Trump administration's bid to reshape global trade by threatening sharply higher tariffs on U.S. trading partners.
Trump told reporters over the weekend that his administration would send letters to several foreign governments as early as Monday spelling out their tariff rates if they don't reach a deal before Wednesday. He added that the U.S. would not start collecting those taxes until Aug. 1, although Treasury Secretary Scott Bessent rejected the idea that Aug. 1 was a new deadline and declined to say what might happen Wednesday.
Late Sunday, Trump said he would impose an additional 10% in tariffs against the BRICS bloc of developing nations, which had condemned tariffs increases at its summit in Brazil. In addition to Brazil, the BRICS countries also include Russia, India, China and South Africa.
The near-term outlook will likely hinge on several key factors like the extent to which trading partners are included in Trump letters, the rate of tariffs, and the effective date of such tariffs, according to analysts at Nomura.
Last week, the Trump administration announced that it reached a deal with Vietnam that would allow U.S. goods to enter the country duty-free, while Vietnamese exports to the U.S. would face a 20% levy. That was a decline from the 46% tax on Vietnamese imports he proposed in April.
'The type of deal struck with Vietnam may be a blueprint for similar countries in the region with economies heavily reliant on large trade deficits with the U.S.,' said Jason Pride, chief of investment strategy and research at Glenmede.
Most of the sectors in the S&P 500 index were in the red, led by technology and consumer-related stocks.
Oracle fell 1.9% and Chipotle Mexican Grill was down 2.9%.
Molina Healthcare fell 0.4% after the insurer lowered its profit guidance due to rapidly accelerating costs. UnitedHealth Group also recently reported a spike in costs that forced it to cut its forecast, sending its stock tumbling in April.
In deal news, software company CoreWeave agreed to acquire cryptocurrency mining company Core Scientific in an all-stock transaction valued at about $9 billion. Shares in Core Scientific sank 18.6%, while CoreWeave slid 3.7%.
The downbeat start to the week follows a strong run for stocks, which pushed further into record heights last week after a better-than-expected U.S. jobs report.
Oil prices fluctuated after OPEC+ agreed on Saturday to raise production in August by 548,000 barrels per day.
U.S. benchmark crude was up 1.2%, while Brent crude, the international standard, was up 1.5%.
Stock indexes in Europe were mostly higher. Asian markets closed mostly lower.
This week will be relatively light on economic data. On Wednesday the Federal Reserve will release minutes from its policymaking committee's meeting last month.
The Fed's chair, Jerome Powell, has been insisting that the central bank wants to wait and see how Trump's tariffs affect the economy and inflation before making its next move on interest rates. While lower rates give a boost to the economy by making it easier to borrow money, they can also give inflation more fuel. That could be dangerous if the Trump' administration's tariffs send inflation higher.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
2 hours ago
- Globe and Mail
Asian shares rise after Wall Street falls as Trump pressures trading partners with new tariffs
Asian shares rose Tuesday after stocks on Wall Street closed broadly lower as the White House stepped up pressure on major trading partners to make deals before punishing tariffs imposed by the U.S. take effect. Japan's Nikkei 225 added 0.4% to 39,734.62 while South Korea's Kospi rose 1.2% to 3,096.29. Hong Kong's Hang Seng index climbed 0.2% to 23,941.58 while the Shanghai Composite gained 0.6% to 3,492.41. Australia's S&P/ASX 200 edged 0.1% lower to 8,583.50. On Wall Street on Monday, the S&P 500 fell 0.8% for its biggest loss since mid-June. The benchmark index remains near its all-time high set last week. The Dow Jones Industrial Average gave back 0.9% while the Nasdaq composite also finished 0.9% lower, not too far from its own record high. The losses were widespread. Decliners outnumbered gainers by nearly 4-to-1 on the New York Stock Exchange. Tesla tumbled 6.8% for the biggest drop among S&P 500 stocks as the feud between CEO Elon Musk and U.S. President Donald Trump reignited over the weekend. Musk, once a top donor and ally of Trump, said he would form a third political party in protest over the Republican spending bill that passed last week. The selling accelerated after the Trump administration released letters informing Japan and South Korea that their goods will be taxed at 25% starting on Aug. 1, citing persistent trade imbalances with the two crucial U.S. allies in Asia. Trump also announced new tariff rates on Malaysia, Kazakhstan, South Africa, Laos and Myanmar. Just before hefty U.S. tariffs on goods imported from nearly every country around the globe were to take effect in April, Trump postponed the levies for 90 days in hopes that foreign governments would be more willing to strike new trade deals. That 90-day negotiating period was set to expire before Wednesday. This latest phase in the trade war heightens the threat of potentially more severe tariffs hanging over the global economy. Higher taxes on imported goods could hinder economic growth, if not increase recession risks. 'With the August 1 deadline serving as a negotiation buffer, the current tape suggests that markets are hedging, not fleeing. The mood? Edgy but not panicked—a poker table where the joker just hit the felt, but no one's shoved their stack,' Stephen Innes, managing partner at SPI Asset Management, wrote in a commentary. Mizuho Bank Ltd, in a commentary, said the three-week extension in the tariff deadline 'is a distraction from festering, and possibly widening, tariff risks.' In other dealings on Tuesday, benchmark U.S. crude oil lost 30 cents to $67.63 per barrel. Brent crude, the international standard, gave up 30 cents to $69.28. The dollar was trading at 146.05 to the Japanese yen, slightly up from 146.01 yen. The euro rose to $1.1746 from $1.1714. ___ AP Business Writer Alex Veiga contributed
Globe and Mail
2 hours ago
- Globe and Mail
Tesla Inc. (TSLA): Mizuho Maintains Bullish Outlook With 25% Upside
Tesla Inc. (TSLA) Mizuho Securities has reaffirmed its 'Buy' rating on Tesla's stock with a 12 month price target of $375. The firm's bullish stance suggests strong long-term confidence in Tesla's growth prospects, technology leadership, and innovation roadmap—particularly in EVs, energy storage, and AI-driven software features like Full Self-Driving (FSD). The downside to the target may reflect near-term pressures including valuation concerns, CEO Elon Musk's political distractions, and macroeconomic headwinds affecting consumer demand and EV adoption. Despite these challenges, Mizuho appears to believe Tesla's fundamentals and strategic position justify a continued Buy recommendation, with room for long-term upside as the company scales newer product lines and improves margins. Tesla has a consensus analyst rating of a 'Hold', with an average 12-month target price of $302 per share, suggesting limited upside from the stock's current trading level; while analysts like Wedbush's Daniel Ives, remain highly bullish with a $500 target. The broader analyst community remains more cautious amid valuation and execution concerns.
Winnipeg Free Press
2 hours ago
- Winnipeg Free Press
Asian shares rise after Wall Street falls as Trump pressures trading partners with new tariffs
Asian shares rose Tuesday after stocks on Wall Street closed broadly lower as the White House stepped up pressure on major trading partners to make deals before punishing tariffs imposed by the U.S. take effect. Japan's Nikkei 225 added 0.4% to 39,734.62 while South Korea's Kospi rose 1.2% to 3,096.29. Hong Kong's Hang Seng index climbed 0.2% to 23,941.58 while the Shanghai Composite gained 0.6% to 3,492.41. Australia's S&P/ASX 200 edged 0.1% lower to 8,583.50. On Wall Street on Monday, the S&P 500 fell 0.8% for its biggest loss since mid-June. The benchmark index remains near its all-time high set last week. The Dow Jones Industrial Average gave back 0.9% while the Nasdaq composite also finished 0.9% lower, not too far from its own record high. The losses were widespread. Decliners outnumbered gainers by nearly 4-to-1 on the New York Stock Exchange. Monday Mornings The latest local business news and a lookahead to the coming week. Tesla tumbled 6.8% for the biggest drop among S&P 500 stocks as the feud between CEO Elon Musk and U.S. President Donald Trump reignited over the weekend. Musk, once a top donor and ally of Trump, said he would form a third political party in protest over the Republican spending bill that passed last week. The selling accelerated after the Trump administration released letters informing Japan and South Korea that their goods will be taxed at 25% starting on Aug. 1, citing persistent trade imbalances with the two crucial U.S. allies in Asia. Trump also announced new tariff rates on Malaysia, Kazakhstan, South Africa, Laos and Myanmar. Just before hefty U.S. tariffs on goods imported from nearly every country around the globe were to take effect in April, Trump postponed the levies for 90 days in hopes that foreign governments would be more willing to strike new trade deals. That 90-day negotiating period was set to expire before Wednesday. This latest phase in the trade war heightens the threat of potentially more severe tariffs hanging over the global economy. Higher taxes on imported goods could hinder economic growth, if not increase recession risks. 'With the August 1 deadline serving as a negotiation buffer, the current tape suggests that markets are hedging, not fleeing. The mood? Edgy but not panicked—a poker table where the joker just hit the felt, but no one's shoved their stack,' Stephen Innes, managing partner at SPI Asset Management, wrote in a commentary. Mizuho Bank Ltd, in a commentary, said the three-week extension in the tariff deadline 'is a distraction from festering, and possibly widening, tariff risks.' In other dealings on Tuesday, benchmark U.S. crude oil lost 30 cents to $67.63 per barrel. Brent crude, the international standard, gave up 30 cents to $69.28. The dollar was trading at 146.05 to the Japanese yen, slightly up from 146.01 yen. The euro rose to $1.1746 from $1.1714. ___ AP Business Writer Alex Veiga contributed
