Markets Slip Amid Tariff Tensions and Earnings Season Anticipation
The Dow slid 279.13 points (0.6%) to 44,371.51, the Nasdaq slipped 45.14 points (0.2%) to 20,585.53 and the S&P 500 fell 20.71 points (0.3%) to 6,259.75.
Former President Trump announced a 35% tariff on Canadian imports, effective August 1st, citing Canadas failure to curb fentanyl trafficking. He warned of further hikes if Canada retaliates but offered to reconsider if cooperation improves. Trump also revealed plans for blanket tariffs of 1520% on most U.S. trade partners. Despite these announcements, trading activity remained subdued amid a lack of major U.S. economic data.
Traders are eyeing the upcoming earnings season, with major U.S. banks set to kick things off next week. Analysts say strong corporate outlooks could boost market confidence despite ongoing tariff concerns.
Airline stocks pulled back sharply after soaring in the previous session, dragging the NYSE Arca Airline Index down by 2.7%. Biotech stocks were considerably weak, as reflected by the 1.5% loss posted by the NYSE Arca Biotechnology Index. Networking, housing and pharmaceutical stocks too turned notably weak while gold stocks moved strongly upwards along with the price of the precious metal.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index dipped by 0.2%, while Hong Kong's Hang Seng Index increased by 0.5%. The major European markets all moved downside while the French CAC 40 Index slumped by 0.9%, the German DAX Index slid by 0.8% and the U.K.'s FTSE 100 Index fell by 0.4%.
In the bond market, treasuries came under pressure after ending the previous session roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 7.7 bps to 4.42%.
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Economic Times
18 minutes ago
- Economic Times
India inches closer to historic US trade deal, can Modi dodge Trump's 26% tariff threat?
Credit where credit is due. Indian trade negotiators have persevered and survived in a tough environment of tariff threats from Donald Trump and rapid-fire letters spitting out of the White strategy: stay calm and carry on. Bring a good ground game, prevent oversimplification of issues, and insist on fairness. An interim India-US trade deal appears tantalisingly close, which, when announced, should remove the sword of 26% tariffs hanging over India. It will be a subset of the 'first tranche' of a BTA that both agreed to complete by fall. Rajesh Agarwal, India's chief negotiator, is here to give the finishing touches but not to make an announcement. That right belongs to Trump. 'Many of us were expecting an announcement two weeks ago. It's impossible to assess what the president's going to do, what his calculus is,' Mark Linscott, a former US trade official, told me. Could the timing be related to trade talks with Pakistan and a desire to make a joint announcement? 'It would not be productive. The India agreement is historic,' said extended the July 9 deadline to August 1, possibly for two reasons - first, negotiations with some countries, including India, were at an advanced stage, and second, he needed to show results. A 'win' in a sea of threats would affirm that his mad strategy is with India have been substantive, with a focus on the long- term trade trajectory. Flexibility is the name of the game. If you are starting with a $45 bn trade surplus, some front-loading of benefits to the US can be digested. The main objective is to avoid the 26% tariffs Trump threatened and protect Indian being finalised would be an interim agreement, which will lead to more detailed discussions on a legal text, which, in turn, would lead to the 'first tranche' of an unprecedented deal and later to a possible second tranche. Neither side has travelled so far so quickly, or held as many meetings and video conferences negotiators are charged up. Sometimes, Delhi has had to wait for DC to respond, belying old beliefs that Indians move slowly, if at US wants more market access for industrial goods, apples, wines, alfalfa hay, soyabean, maize and dairy products. India is open to some, but GMO foods and dairy are red lines - one is banned under law, and the other could spark riots because American cows are fed a non-veg diet. Officials will likely set the most contentious issues for wants lower tariffs on its labour-intensive exports, from leather products to garments to textiles to gems and jewellery. Greater market access for pharma and electronics would be good, too, and while you are at it, don't forget to lower US tariffs on steel, aluminium and auto there are differences on 'standards' - whose standards are right, and should one country automatically accept another's? How do you position your objections? How do you simplify/harmonise the two regulatory structures? The word 'complex' doesn't do justice to the nature of discussions, the pushing and pulling, the stretching of limits, and making the right judgements while weighing the politics of it is on the cusp of something positive in a challenging landscape where every day springs a surprise, often a nasty one. US negotiators have kept everything close to their chest - even their companies don't know the direction of the all part of the strategy of unpredictability - now fully grown from its nascency in Trump 1.0. The letter bombs dropped on Japan, South Korea, Laos, Bangladesh and even Myanmar, are nothing but a pressure campaign to shock them into submission. A letter doesn't mean Trump won't do a trade deal - a Bangladeshi delegation is already here asking for for Senator Lindsey Graham's bill, which proposes 500% tariffs on countries that buy Russian oil, gas, uranium and petrochemical products, it does allow Trump to waive those tariffs for 180 days on national security grounds. A newer version - still secret - is expected to expand Trump's ability to grant the bill is pushed in the US Congress will depend on how talks with Russia progress, or don't. Both Dems and Rs are united in their desire to punish Moscow. India, as a major buyer of Russian oil, will have a problem on hand unless given a waiver. Diplomatic efforts are underway to sensitise Graham and his staff to India's need for energy If the bill becomes law, global oil prices will likely rise, which means higher prices for Americans at the gas pump. That won't be good news for Trump. But an interim trade agreement with India would be. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. The 10-second mystery: Did the Air India crash report hide more than what it revealed? Can Indian IT's 'pyramid' survive the GenAI shake-up? Zee promoters have a new challenge to navigate. And it's not about funding or Sebi probe. 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India.com
29 minutes ago
- India.com
Bitcoin Hits Record High As US Enters ‘Crypto Week': Why Cryptocurrency Is Soaring And Washington Is Racing To Regulate
Washington D.C.: This week could become a turning point for crypto currency in the United States. Bitcoin has crossed $120,000 for the first time. At the same time, power, money and regulation are coming together in a way that may reshape how America deals with digital currency. Starting July 14, the US House of Representatives began what insiders have dubbed 'Crypto Week', a legislative showdown that could redraw the line between government control and financial freedom in the digital age. Three major bills are on the table. Their names sound technical, but their implications are seismic. At the top is the GENIUS Act, which aims to draw clear lines between securities and commodities in the crypto world – giving startups regulatory breathing room. It has already passed the Senate. Then there is the Clarity Act, which takes a swing at federal agencies like the U.S. Securities and Exchange Commission (SEC), trying to rein in their power and hand that authority back to the Congress. And finally, the Anti-CBDC Surveillance State Act, which would ban the Federal Reserve from issuing a central bank digital currency – a pushback against fears of state-run digital surveillance. In the eyes of many Republicans and of President Donald Trump in particular, this week is about liberation. No more lawsuits from the SEC. No more regulatory fog. Just 'innovation', 'freedom' and 'massive profits'. Trump has personally backed the industry's expansion, calling on lawmakers to ditch Biden-era restrictions and open the gates. 'Even if the bills stall, capital will flood back into the market,' said Bitfinex's head of derivatives Jag Kooner, speaking to Reuters. And so far, he has been right. Bitcoin surged 29% this year alone, peaking Monday (July 14) at a jaw-dropping $122,055. Ethereum touched $3,048, its highest level in five months. The crypto market's total value now hovers near $3.8 trillion. But the enthusiasm is hardly universal. Senator Elizabeth Warren is furious. She has accused Republicans, and Trump himself, of turning the U.S. government into a playground for crypto billionaires. 'This looks like another industry handout,' she said during a tense Senate hearing on July 9. She demanded a ban on public officials, including Trump, from issuing or profiting from crypto tokens – citing massive conflicts of interest. Her concerns are not baseless. The Trump family's ties to crypto run deep. From meme coins like $Trump and $Melania to the World Liberty Financial group, which earned the president over $57 million, the Trump orbit has been flooded with crypto ventures. And now, his team has filed with the SEC to launch a 'Crypto Blue-Chip ETF', further blurring the lines between public service and private fortune. Trump's crypto awakening has been swift. Once a skeptic, he now frames himself as the industry's champion. During his 2024 campaign, he welcomed crypto donations, courted blockchain entrepreneurs and promised to make the United States 'the crypto capital of the world'. That promise seems closer to reality than ever before. And it is paying off. Since Trump's re-election in November 2024, Bitcoin has skyrocketed 75%, vaulting from $69,539 on Election Day to record highs. At this point, Bitcoin's total value would place it among the world's ten largest economies, alongside Canada and Brazil. But volatility has not vanished. In February, Bitcoin briefly dropped below $90,000 after Trump stunned markets with sweeping tariffs on U.S. allies. Still, the coin rebounded, and then some, after Trump doubled down on crypto by announcing a federal 'crypto reserve' that would include five digital currencies, including Bitcoin. Amid global economic instability – trade wars, ongoing conflicts in Ukraine and the Middle East and wild market swings – Bitcoin has emerged as both a financial escape hatch and a political weapon. More than any other U.S. president, Trump has embraced it as both. Supporters say this week marks the turning point for America's crypto industry. Critics say it is the beginning of its capture. Either way, Crypto Week is here, and the stakes have never been higher. Whether it ends in boom or bust, one thing is certain that the lines between finance, politics and technology are being redrawn live on the floor of the Congress. Washington D.C.: This week could become a turning point for crypto currency in the United States. Bitcoin has crossed $120,000 for the first time. At the same time, power, money and regulation are coming together in a way that may reshape how America deals with digital currency. Starting July 14, the US House of Representatives began what insiders have dubbed 'Crypto Week', a legislative showdown that could redraw the line between government control and financial freedom in the digital age. Three major bills are on the table. Their names sound technical, but their implications are seismic. At the top is the GENIUS Act, which aims to draw clear lines between securities and commodities in the crypto world – giving startups regulatory breathing room. It has already passed the Senate. Then there is the Clarity Act, which takes a swing at federal agencies like the U.S. Securities and Exchange Commission (SEC), trying to rein in their power and hand that authority back to the Congress. And finally, the Anti-CBDC Surveillance State Act, which would ban the Federal Reserve from issuing a central bank digital currency – a pushback against fears of state-run digital surveillance. In the eyes of many Republicans and of President Donald Trump in particular, this week is about liberation. No more lawsuits from the SEC. No more regulatory fog. Just 'innovation', 'freedom' and 'massive profits'. Trump has personally backed the industry's expansion, calling on lawmakers to ditch Biden-era restrictions and open the gates. 'Even if the bills stall, capital will flood back into the market,' said Bitfinex's head of derivatives Jag Kooner, speaking to Reuters. And so far, he has been right. Bitcoin surged 29% this year alone, peaking Monday (July 14) at a jaw-dropping $122,055. Ethereum touched $3,048, its highest level in five months. The crypto market's total value now hovers near $3.8 trillion. But the enthusiasm is hardly universal. Senator Elizabeth Warren is furious. She has accused Republicans, and Trump himself, of turning the U.S. government into a playground for crypto billionaires. 'This looks like another industry handout,' she said during a tense Senate hearing on July 9. She demanded a ban on public officials, including Trump, from issuing or profiting from crypto tokens – citing massive conflicts of interest. Her concerns are not baseless. The Trump family's ties to crypto run deep. From meme coins like $Trump and $Melania to the World Liberty Financial group, which earned the president over $57 million, the Trump orbit has been flooded with crypto ventures. And now, his team has filed with the SEC to launch a 'Crypto Blue-Chip ETF', further blurring the lines between public service and private fortune. Trump's crypto awakening has been swift. Once a skeptic, he now frames himself as the industry's champion. During his 2024 campaign, he welcomed crypto donations, courted blockchain entrepreneurs and promised to make the United States 'the crypto capital of the world'. That promise seems closer to reality than ever before. And it is paying off. Since Trump's re-election in November 2024, Bitcoin has skyrocketed 75%, vaulting from $69,539 on Election Day to record highs. At this point, Bitcoin's total value would place it among the world's ten largest economies, alongside Canada and Brazil. But volatility has not vanished. In February, Bitcoin briefly dropped below $90,000 after Trump stunned markets with sweeping tariffs on U.S. allies. Still, the coin rebounded, and then some, after Trump doubled down on crypto by announcing a federal 'crypto reserve' that would include five digital currencies, including Bitcoin. Amid global economic instability – trade wars, ongoing conflicts in Ukraine and the Middle East and wild market swings – Bitcoin has emerged as both a financial escape hatch and a political weapon. More than any other U.S. president, Trump has embraced it as both. Supporters say this week marks the turning point for America's crypto industry. Critics say it is the beginning of its capture. Either way, Crypto Week is here, and the stakes have never been higher. Whether it ends in boom or bust, one thing is certain that the lines between finance, politics and technology are being redrawn live on the floor of the Congress.
Time of India
30 minutes ago
- Time of India
US manufacturing falters despite policy boost: Donald Trump's tariffs and Biden's subsidies fail to lift sector; jobs, output remain stuck in post-pandemic rut
US manufacturing is showing persistent signs of stagnation despite a policy push from both political sides — with President Donald Trump deploying steep tariffs and former President Joe Biden previously handing out subsidies — to shore up domestic industry. Tired of too many ads? go ad free now Job losses and tepid production data point to a sector still waiting for momentum to return. Factories in the US cut 7,000 jobs in June, according to the Labor Department, marking the second straight month of declines. Manufacturing employment is now set to fall for a third consecutive year. Activity also continued to contract in June, with the Institute for Supply Management (ISM) reporting that the sector has shrunk in 30 of the past 32 months since October 2022. The analysis highlights the limited impact of both the Biden-era factory investment boom and the Trump administration's aggressive tariff regime, reported by AP. 'The past three years have been a real slog for manufacturing,' said Eric Hagopian, CEO of Pilot Precision Products, a Massachusetts-based industrial tools maker. 'We didn't get destroyed like in 2008, but we've been in this stagnant, sort of stationary environment. ' The slowdown has been driven by several factors, including inflationary pressures that spiked following the post-COVID recovery and the Federal Reserve's sharp interest rate hikes in 2022 and 2023. Though Biden's clean energy and chip subsidies sparked a surge in factory construction between 2021 and 2024, investments have since slowed after Trump returned to power and Congress reversed many green energy incentives. Tired of too many ads? go ad free now Mark Zandi, chief economist at Moody's Analytics, warned that 'manufacturing production will continue to flatline,' adding that employment in the sector is likely to shrink further in the coming year. Trump, meanwhile, is pursuing protectionist policies to encourage domestic manufacturing. The administration has imposed tariffs of 50% on steel and aluminum, 25% on autos and parts, and 10% on a range of other imports. While the levies offer some companies a pricing edge, they also raise costs on imported materials essential to US producers. 'For some bids, the tariff helps us stay competitive,' said Chris Zuzick, VP at Waukesha Metal Products in Wisconsin, AP quoted. But steel prices, buoyed by the protectionist policy, have soared — reaching $960 per metric ton in the US, more than double the $440 world average as of June 23, according to SteelBenchmarker. Despite the high duties, firms like Pilot Precision still source steel from France and Austria — even after paying tariffs — because of price and quality dynamics. Further complicating matters is the lack of clarity around policy. Trump has repeatedly delayed and revised tariff schedules, leaving manufacturers in limbo. 'Customers do not want to make commitments in the wake of massive tariff uncertainty,' an ISM survey respondent from the fabricated metal products industry noted. A computer hardware firm added, 'The situation remains too volatile to firmly put such plans into place. ' The recent slowdown may also reflect a reversion to pre-pandemic norms. After losing nearly 1.4 million jobs in early 2020, factories surged during the COVID-driven goods boom, adding 379,000 jobs in 2021 and 357,000 in 2022. But hiring then plateaued in 2023 and has since reversed. As of June, factory payrolls stood at 12.75 million — almost unchanged from the 12.74 million recorded in February 2020. 'It's a long, strange trip to get back to where we started,' said Jared Bernstein, chair of Biden's Council of Economic Advisers. While manufacturers wait for clearer signals from the Trump administration's upcoming 'One Big Beautiful Bill,' many remain cautious. Hagopian is hopeful that targeted tax breaks might help, and Zuzick echoed that it's too soon to judge the tariff impact: 'Manufacturing doesn't turn on a dime.' With policy flip-flops, cost pressure and weak demand all in play, most factories are keeping hiring and investment plans on hold. 'Everyone,' Zuzick said, 'is kind of just waiting for the new normal.'
