US stock market today: Wall Street slips ahead of Trump's tariff deadline; Tesla tanks 6.5% as Elon Musk– Donald Trump feud roils investor sentiment
The pullback came as the White House stepped up pressure on trading partners to finalise deals before Wednesday or face the threat of higher tariffs from August 1. The administration has indicated it may offer flexibility if countries are seen negotiating 'in good faith', but global markets remain on edge, AP reported.
'The path forward isn't clear'
'Markets are likely to remain volatile into the July 9 deadline, when the 90-day pause on President Trump's reciprocal tariffs expires for non-China trading partners,' Nomura Group said in a note.
The near-term outlook, it added, would hinge on the scope of the tariffs, who they target, and how quickly they're implemented.
Stephen Innes, managing partner at SPI Asset Management, echoed the sentiment: 'With the July 9 tariff deadline fast approaching, all eyes are trained on Washington, scanning for signs of escalation or retreat. The path forward isn't clear, but the terrain is littered with risk.'
Tesla
drops on fresh Musk–Trump clash
Tesla shares tumbled 6.5% after CEO
Elon Musk
reignited a public feud with President
Donald Trump
over the weekend.
Musk, once a top donor and ally of Trump, announced the formation of a third political party in protest against the Republicans' recently passed spending bill, AP reported.
Trump responded by criticising Musk on social media, suggesting the Tesla chief was upset over provisions in the bill that would end the federal electric vehicle mandate—a move that could directly impact Tesla's business model.
Investors now fear Musk's escalating political involvement could jeopardise the federal subsidies and government contracts that Tesla and other Musk-led ventures rely on.
Adding to the pressure, investment firm Azoria Partners delayed the launch of a Tesla-focused exchange-traded fund following the announcement.
Healthcare and oil in focus
Molina Healthcare fell 6% after the insurer cut its profit forecast, citing rapidly rising medical costs. The move echoed a similar guidance downgrade from UnitedHealth Group earlier this year, which had triggered a steep decline in its stock price.
In the commodities market, oil prices showed mixed trends after Opec+ agreed on Saturday to increase production by 548,000 barrels per day in August.
US benchmark West Texas Intermediate crude was flat at $67 per barrel, while Brent crude gained 40 cents to $68.70.
Global market snapshot
In Europe, markets saw modest gains by midday: Britain's FTSE 100 rose 0.1%, Germany's DAX advanced 0.8%, and France's CAC 40 climbed 0.2%.
Asia closed largely mixed. Japan's Nikkei 225 dropped 0.6%, Hong Kong's Hang Seng slipped 0.1%, and Australia's ASX 200 edged 0.2% lower. South Korea's KOSPI rose 0.2%, and Shanghai Composite added 0.1%.
In currency trading, the US dollar strengthened to 145.42 yen from 144.44 yen, while the euro dipped to $1.1727 from $1.1779.
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