Wall Street slips amid new tariff turmoil
Trump ramped up trade tensions over the weekend, vowing to slap a 30 per cent tariff on most imports from the European Union and Mexico starting August 1 - a move that leaves the clock ticking for last-minute trade deals.
The EU extended its pause on retaliatory measures until early August, holding out hope for a negotiated truce.
The White House said talks with the EU, Canada and Mexico are still underway.
Trump's latest salvo follows last week's tariff offensive, which targeted the United States' close allies like Canada, Japan and South Korea, and a 50 per cent duty on copper.
Yet, investors barely flinched, having grown accustomed to Trump's tariff threats and his track record of last-minute reversals.
"The stock market's muted reaction to the latest volley of tariff headlines suggests investors may be growing numb to them, or are deciding that the tariff bark will likely be worse than the eventual bite," said Chris Larkin, managing director, trading and investing, E*TRADE from Morgan Stanley.
In early trading on Monday, the Dow Jones Industrial Average fell 27.60 points, or 0.06 per cent, to 44,343.20, the S&P 500 lost 11.72 points, or 0.19 per cent, to 6,248.16 and the Nasdaq Composite lost 36.06 points, or 0.17 per cent, to 20,549.58.
RBC Capital Markets raised its year-end S&P 500 target to 6,250 - its second upgrade this year - citing upbeat investor sentiment and optimism about the economic outlook through 2026.
Focus was also shifting to the commencement of the second-quarter earnings season, with Wall Street's banking giants reporting on Tuesday.
Attention was also on Tuesday's consumer price data, expected to show an uptick in US inflation in June, as sellers began raising prices to factor in Trump's sweeping tariffs.
Meanwhile, producer and import price reports are due on Wednesday and retail sales figures are due on Thursday.
While traders have almost fully ruled out a July rate cut, the probability for a September move stands at 61 per cent, according to CME FedWatch.
In an interview on Fox Business, Cleveland Fed president Beth Hammack rejected the need to immediately lower interest rates.
Most S&P sectors were in the positive domain but the information technology index was a drag, down 0.8 per cent.
Chip stocks came under pressure, with Micron Technology falling about 5 per cent and Nvidia down 1.2 per cent.
Among other stocks, Tesla rose 1.3 per cent after CEO Elon Musk ruled out a merger between the electric vehicle maker and xAI.
Crypto stocks ticked up after bitcoin topped $US120,000 for the first time.
Coinbase global rose 2.7 per cent, Bitfarms gained 5.1 per cent and Riot platforms was up 5.4 per cent.
Waters Corp dropped 9.4 per cent after the lab equipment maker agreed to merge with rival Becton, Dickinson and Company's Biosciences & Diagnostic Solutions unit in a $US17.5 billion ($A26.7 billion) deal.
Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE while advancing issues outnumbered decliners by a 1.13-to-1 ratio on the Nasdaq.
The S&P 500 posted nine new 52-week highs and four new lows while the Nasdaq Composite recorded 41 new highs and 28 new lows.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
7NEWS
3 hours ago
- 7NEWS
Musk's xAI faces European scrutiny over Grok's ‘horrific' antisemitic posts
The European Union on Monday called in representatives from Elon Musk's xAI after the company's social network X, and chatbot Grok, generated and spread anti-Semitic hate speech, including praise for Adolf Hitler, last week. A spokesperson for the European Commission told CNBC via e-mail that a technical meeting will take place on Tuesday. xAI did not immediately respond to a request for comment. Sandro Gozi, a member of Italy's parliament and member of the Renew Europe group, last week urged the Commission to hold a formal inquiry. 'The case raises serious concerns about compliance with the Digital Services Act (DSA) as well as the governance of generative AI in the Union's digital space,' Gozi wrote. X was already under a Commission probe for possible violations of the DSA. Grok also generated and spread offensive posts about political leaders in Poland and Turkey, including Polish Prime Minister Donald Tusk and Turkish President Recep Erdogan. Over the weekend, xAI posted a statement apologising for the hateful content. 'First off, we deeply apologise for the horrific behaviour that many experienced. ... After careful investigation, we discovered the root cause was an update to a code path upstream of the @grok bot,' the company said in the statement. Musk and his xAI team launched a new version of Grok Wednesday night amid the backlash. Musk called it 'the smartest AI in the world.' xAI works with other businesses run and largely owned by Musk, including Tesla, the publicly traded automaker, and SpaceX, the US aerospace and defence contractor. Despite Grok's recent outburst of hate speech, the US Department of Defence awarded xAI a $US200 million ($305 million) contract to develop AI. Anthropic, Google and OpenAI also received AI contracts.
The Advertiser
4 hours ago
- The Advertiser
Global shares gain before key US earnings and data
Shares have climbed worldwide and the dollar has held gains as market participants enter a key week for US earnings, inflation data and trade talks in a relatively optimistic mood. Oil prices edged lower after US President Donald Trump issued a 50-day deadline for Russia to end the war in Ukraine to avoid energy sanctions. Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30 per cent duties on the European Union and Mexico from August 1. Japan is reportedly trying to schedule high-level talks with the US on Friday. Market reaction to the tariff uncertainty has been benign, making earnings in the United States this week all the more important for cues. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 per cent on Tuesday, while Europe's STOXX benchmark rose 0.2 per cent and Nasdaq futures gained after Nvidia said it would resume sales of its H20 chips to China. The EU accused the US of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Trump said he was open to talks with the EU and other trading partners. Japan's Prime Minister Shigeru Ishiba is arranging to meet US Treasury Secretary Scott Bessent in Tokyo on Friday, the Yomiuri newspaper reported, before an August 1 deadline before 25 per cent tariffs are due to take effect. Ishiba also has an election to contend with on Sunday, with polls showing his ruling coalition might lose their majority in the upper house to political opponents who are advocating for expansive spending. Japanese government bonds plunged, with the benchmark 10-year yield rising to 1.595 per cent, its highest since October 2008. Data showed China's economy slowed less than expected in the second quarter in a show of resilience against US tariffs. Nvidia CEO Jensen Huang is scheduled to visit the country on Wednesday, with his company now planning to resume sales of its H20 artificial intelligence chips in the market. The US earnings season is set to begin on Tuesday, with second-quarter reports from major banks. S&P 500 profits are expected to rise 5.8 per cent year-over-year, according to LSEG data. The outlook has dimmed sharply since the early April forecast of 10.2 per cent growth, before Trump launched his trade war. Trump's renewed verbal attacks on Federal Reserve chair Jerome Powell in recent weeks also offered markets a reminder of the turmoil that his sometimes abrupt decision-making can unleash, analysts said. Investors are also waiting for US consumer price data for June, due on Tuesday, and will monitor for any upward pressure on prices from tariffs. The dollar was little changed at 147.62 yen after touching a three-week high. The euro edged up 0.1 per cent to $US1.1680 after four days of losses. US crude dipped 0.6 per cent to $US66.56 a barrel. Trump announced new weapons shipments for Ukraine on Monday, and threatened sanctions on buyers of Russian exports unless Moscow agrees to a peace deal in 50 days. Gold strengthened 0.5 per cent at $US3,358 per ounce, while spot silver gained 0.3 per cent to $US38.25 an ounce after hitting its highest level since September 2011 in the previous session. Shares have climbed worldwide and the dollar has held gains as market participants enter a key week for US earnings, inflation data and trade talks in a relatively optimistic mood. Oil prices edged lower after US President Donald Trump issued a 50-day deadline for Russia to end the war in Ukraine to avoid energy sanctions. Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30 per cent duties on the European Union and Mexico from August 1. Japan is reportedly trying to schedule high-level talks with the US on Friday. Market reaction to the tariff uncertainty has been benign, making earnings in the United States this week all the more important for cues. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 per cent on Tuesday, while Europe's STOXX benchmark rose 0.2 per cent and Nasdaq futures gained after Nvidia said it would resume sales of its H20 chips to China. The EU accused the US of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Trump said he was open to talks with the EU and other trading partners. Japan's Prime Minister Shigeru Ishiba is arranging to meet US Treasury Secretary Scott Bessent in Tokyo on Friday, the Yomiuri newspaper reported, before an August 1 deadline before 25 per cent tariffs are due to take effect. Ishiba also has an election to contend with on Sunday, with polls showing his ruling coalition might lose their majority in the upper house to political opponents who are advocating for expansive spending. Japanese government bonds plunged, with the benchmark 10-year yield rising to 1.595 per cent, its highest since October 2008. Data showed China's economy slowed less than expected in the second quarter in a show of resilience against US tariffs. Nvidia CEO Jensen Huang is scheduled to visit the country on Wednesday, with his company now planning to resume sales of its H20 artificial intelligence chips in the market. The US earnings season is set to begin on Tuesday, with second-quarter reports from major banks. S&P 500 profits are expected to rise 5.8 per cent year-over-year, according to LSEG data. The outlook has dimmed sharply since the early April forecast of 10.2 per cent growth, before Trump launched his trade war. Trump's renewed verbal attacks on Federal Reserve chair Jerome Powell in recent weeks also offered markets a reminder of the turmoil that his sometimes abrupt decision-making can unleash, analysts said. Investors are also waiting for US consumer price data for June, due on Tuesday, and will monitor for any upward pressure on prices from tariffs. The dollar was little changed at 147.62 yen after touching a three-week high. The euro edged up 0.1 per cent to $US1.1680 after four days of losses. US crude dipped 0.6 per cent to $US66.56 a barrel. Trump announced new weapons shipments for Ukraine on Monday, and threatened sanctions on buyers of Russian exports unless Moscow agrees to a peace deal in 50 days. Gold strengthened 0.5 per cent at $US3,358 per ounce, while spot silver gained 0.3 per cent to $US38.25 an ounce after hitting its highest level since September 2011 in the previous session. Shares have climbed worldwide and the dollar has held gains as market participants enter a key week for US earnings, inflation data and trade talks in a relatively optimistic mood. Oil prices edged lower after US President Donald Trump issued a 50-day deadline for Russia to end the war in Ukraine to avoid energy sanctions. Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30 per cent duties on the European Union and Mexico from August 1. Japan is reportedly trying to schedule high-level talks with the US on Friday. Market reaction to the tariff uncertainty has been benign, making earnings in the United States this week all the more important for cues. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 per cent on Tuesday, while Europe's STOXX benchmark rose 0.2 per cent and Nasdaq futures gained after Nvidia said it would resume sales of its H20 chips to China. The EU accused the US of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Trump said he was open to talks with the EU and other trading partners. Japan's Prime Minister Shigeru Ishiba is arranging to meet US Treasury Secretary Scott Bessent in Tokyo on Friday, the Yomiuri newspaper reported, before an August 1 deadline before 25 per cent tariffs are due to take effect. Ishiba also has an election to contend with on Sunday, with polls showing his ruling coalition might lose their majority in the upper house to political opponents who are advocating for expansive spending. Japanese government bonds plunged, with the benchmark 10-year yield rising to 1.595 per cent, its highest since October 2008. Data showed China's economy slowed less than expected in the second quarter in a show of resilience against US tariffs. Nvidia CEO Jensen Huang is scheduled to visit the country on Wednesday, with his company now planning to resume sales of its H20 artificial intelligence chips in the market. The US earnings season is set to begin on Tuesday, with second-quarter reports from major banks. S&P 500 profits are expected to rise 5.8 per cent year-over-year, according to LSEG data. The outlook has dimmed sharply since the early April forecast of 10.2 per cent growth, before Trump launched his trade war. Trump's renewed verbal attacks on Federal Reserve chair Jerome Powell in recent weeks also offered markets a reminder of the turmoil that his sometimes abrupt decision-making can unleash, analysts said. Investors are also waiting for US consumer price data for June, due on Tuesday, and will monitor for any upward pressure on prices from tariffs. The dollar was little changed at 147.62 yen after touching a three-week high. The euro edged up 0.1 per cent to $US1.1680 after four days of losses. US crude dipped 0.6 per cent to $US66.56 a barrel. Trump announced new weapons shipments for Ukraine on Monday, and threatened sanctions on buyers of Russian exports unless Moscow agrees to a peace deal in 50 days. Gold strengthened 0.5 per cent at $US3,358 per ounce, while spot silver gained 0.3 per cent to $US38.25 an ounce after hitting its highest level since September 2011 in the previous session. Shares have climbed worldwide and the dollar has held gains as market participants enter a key week for US earnings, inflation data and trade talks in a relatively optimistic mood. Oil prices edged lower after US President Donald Trump issued a 50-day deadline for Russia to end the war in Ukraine to avoid energy sanctions. Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30 per cent duties on the European Union and Mexico from August 1. Japan is reportedly trying to schedule high-level talks with the US on Friday. Market reaction to the tariff uncertainty has been benign, making earnings in the United States this week all the more important for cues. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 per cent on Tuesday, while Europe's STOXX benchmark rose 0.2 per cent and Nasdaq futures gained after Nvidia said it would resume sales of its H20 chips to China. The EU accused the US of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Trump said he was open to talks with the EU and other trading partners. Japan's Prime Minister Shigeru Ishiba is arranging to meet US Treasury Secretary Scott Bessent in Tokyo on Friday, the Yomiuri newspaper reported, before an August 1 deadline before 25 per cent tariffs are due to take effect. Ishiba also has an election to contend with on Sunday, with polls showing his ruling coalition might lose their majority in the upper house to political opponents who are advocating for expansive spending. Japanese government bonds plunged, with the benchmark 10-year yield rising to 1.595 per cent, its highest since October 2008. Data showed China's economy slowed less than expected in the second quarter in a show of resilience against US tariffs. Nvidia CEO Jensen Huang is scheduled to visit the country on Wednesday, with his company now planning to resume sales of its H20 artificial intelligence chips in the market. The US earnings season is set to begin on Tuesday, with second-quarter reports from major banks. S&P 500 profits are expected to rise 5.8 per cent year-over-year, according to LSEG data. The outlook has dimmed sharply since the early April forecast of 10.2 per cent growth, before Trump launched his trade war. Trump's renewed verbal attacks on Federal Reserve chair Jerome Powell in recent weeks also offered markets a reminder of the turmoil that his sometimes abrupt decision-making can unleash, analysts said. Investors are also waiting for US consumer price data for June, due on Tuesday, and will monitor for any upward pressure on prices from tariffs. The dollar was little changed at 147.62 yen after touching a three-week high. The euro edged up 0.1 per cent to $US1.1680 after four days of losses. US crude dipped 0.6 per cent to $US66.56 a barrel. Trump announced new weapons shipments for Ukraine on Monday, and threatened sanctions on buyers of Russian exports unless Moscow agrees to a peace deal in 50 days. Gold strengthened 0.5 per cent at $US3,358 per ounce, while spot silver gained 0.3 per cent to $US38.25 an ounce after hitting its highest level since September 2011 in the previous session.
The Advertiser
4 hours ago
- The Advertiser
Tesla makes India debut with upscale showroom launch
Tesla has opened its first showroom in India, marking the electric vehicle maker's long-anticipated debut in the world's third-biggest automotive market. In the Bandra-Kurla Complex, an upscale business centre in the financial capital Mumbai, the showroom will serve as Tesla's flagship retail and experience outlet as the company introduces its EV line-up to Indian customers. Tesla's entry to India comes after years of delays and policy friction, marking a pivotal expansion in a fast-growing consumer base while global sales are plunging and the company faces challenges in its two core markets, China and the US. Sales of Tesla electric cars fell sharply from April to June as boycotts over tech billionaire Elon Musk's political views continued keeping buyers away. For India, Tesla's entry signals rising investor confidence and strengthens its move towards clean mobility. The country's nascent electric vehicle market made up a little more than two per cent of total car sales in 2024. But the government wants to change that and increase the electric vehicle share to 30 per cent by 2030. Tesla will begin by importing and selling its popular Y model cars in India. The base price would be 6.78 million rupees ($A120,000) for the long-range, rear-wheel drive vehicle, according to a presentation by the company during the showroom launch on Tuesday. By comparison, the price tag is about $US44,990 ($A69,000) in the US without a federal tax credit. The rear-wheel drive will sell for about six million rupees in India. Delivery was expected to start from the third quarter, Tesla officials said. Tesla's higher pricing is likely to make its cars unaffordable for most Indians. Tesla will compete mostly with German luxury car makers such as BMW and Mercedes Benz Group AG, and not budget Indian players such as Tata Motors and Mahindra & Mahindra. The luxury car market makes up just about one per cent of total vehicle sales The debut by American EV giant, however, would bring in world-class technology to the country, auto analysts said. Prime Minister Narendra Modi's government has wooed Tesla for years for its global brand value and to boost the country's clean energy endeavours. Tesla has opened its first showroom in India, marking the electric vehicle maker's long-anticipated debut in the world's third-biggest automotive market. In the Bandra-Kurla Complex, an upscale business centre in the financial capital Mumbai, the showroom will serve as Tesla's flagship retail and experience outlet as the company introduces its EV line-up to Indian customers. Tesla's entry to India comes after years of delays and policy friction, marking a pivotal expansion in a fast-growing consumer base while global sales are plunging and the company faces challenges in its two core markets, China and the US. Sales of Tesla electric cars fell sharply from April to June as boycotts over tech billionaire Elon Musk's political views continued keeping buyers away. For India, Tesla's entry signals rising investor confidence and strengthens its move towards clean mobility. The country's nascent electric vehicle market made up a little more than two per cent of total car sales in 2024. But the government wants to change that and increase the electric vehicle share to 30 per cent by 2030. Tesla will begin by importing and selling its popular Y model cars in India. The base price would be 6.78 million rupees ($A120,000) for the long-range, rear-wheel drive vehicle, according to a presentation by the company during the showroom launch on Tuesday. By comparison, the price tag is about $US44,990 ($A69,000) in the US without a federal tax credit. The rear-wheel drive will sell for about six million rupees in India. Delivery was expected to start from the third quarter, Tesla officials said. Tesla's higher pricing is likely to make its cars unaffordable for most Indians. Tesla will compete mostly with German luxury car makers such as BMW and Mercedes Benz Group AG, and not budget Indian players such as Tata Motors and Mahindra & Mahindra. The luxury car market makes up just about one per cent of total vehicle sales The debut by American EV giant, however, would bring in world-class technology to the country, auto analysts said. Prime Minister Narendra Modi's government has wooed Tesla for years for its global brand value and to boost the country's clean energy endeavours. Tesla has opened its first showroom in India, marking the electric vehicle maker's long-anticipated debut in the world's third-biggest automotive market. In the Bandra-Kurla Complex, an upscale business centre in the financial capital Mumbai, the showroom will serve as Tesla's flagship retail and experience outlet as the company introduces its EV line-up to Indian customers. Tesla's entry to India comes after years of delays and policy friction, marking a pivotal expansion in a fast-growing consumer base while global sales are plunging and the company faces challenges in its two core markets, China and the US. Sales of Tesla electric cars fell sharply from April to June as boycotts over tech billionaire Elon Musk's political views continued keeping buyers away. For India, Tesla's entry signals rising investor confidence and strengthens its move towards clean mobility. The country's nascent electric vehicle market made up a little more than two per cent of total car sales in 2024. But the government wants to change that and increase the electric vehicle share to 30 per cent by 2030. Tesla will begin by importing and selling its popular Y model cars in India. The base price would be 6.78 million rupees ($A120,000) for the long-range, rear-wheel drive vehicle, according to a presentation by the company during the showroom launch on Tuesday. By comparison, the price tag is about $US44,990 ($A69,000) in the US without a federal tax credit. The rear-wheel drive will sell for about six million rupees in India. Delivery was expected to start from the third quarter, Tesla officials said. Tesla's higher pricing is likely to make its cars unaffordable for most Indians. Tesla will compete mostly with German luxury car makers such as BMW and Mercedes Benz Group AG, and not budget Indian players such as Tata Motors and Mahindra & Mahindra. The luxury car market makes up just about one per cent of total vehicle sales The debut by American EV giant, however, would bring in world-class technology to the country, auto analysts said. Prime Minister Narendra Modi's government has wooed Tesla for years for its global brand value and to boost the country's clean energy endeavours. Tesla has opened its first showroom in India, marking the electric vehicle maker's long-anticipated debut in the world's third-biggest automotive market. In the Bandra-Kurla Complex, an upscale business centre in the financial capital Mumbai, the showroom will serve as Tesla's flagship retail and experience outlet as the company introduces its EV line-up to Indian customers. Tesla's entry to India comes after years of delays and policy friction, marking a pivotal expansion in a fast-growing consumer base while global sales are plunging and the company faces challenges in its two core markets, China and the US. Sales of Tesla electric cars fell sharply from April to June as boycotts over tech billionaire Elon Musk's political views continued keeping buyers away. For India, Tesla's entry signals rising investor confidence and strengthens its move towards clean mobility. The country's nascent electric vehicle market made up a little more than two per cent of total car sales in 2024. But the government wants to change that and increase the electric vehicle share to 30 per cent by 2030. Tesla will begin by importing and selling its popular Y model cars in India. The base price would be 6.78 million rupees ($A120,000) for the long-range, rear-wheel drive vehicle, according to a presentation by the company during the showroom launch on Tuesday. By comparison, the price tag is about $US44,990 ($A69,000) in the US without a federal tax credit. The rear-wheel drive will sell for about six million rupees in India. Delivery was expected to start from the third quarter, Tesla officials said. Tesla's higher pricing is likely to make its cars unaffordable for most Indians. Tesla will compete mostly with German luxury car makers such as BMW and Mercedes Benz Group AG, and not budget Indian players such as Tata Motors and Mahindra & Mahindra. The luxury car market makes up just about one per cent of total vehicle sales The debut by American EV giant, however, would bring in world-class technology to the country, auto analysts said. Prime Minister Narendra Modi's government has wooed Tesla for years for its global brand value and to boost the country's clean energy endeavours.
