Wall Street experienced a broad selloff, with major indexes closing lower following fresh tariff threats and geopolitical uncertainty. The Dow Jones fell by 0.9%, the S&P 500 by 0.8%, the Nasdaq by 0.9%, and the Russell 2000 by 1.6%. President Trump’s announcement of 25% tariffs on imports from Japan and South Korea heightened fears of a global trade conflict, impacting investor confidence and market optimism.
Shares of mega-cap tech companies, including Tesla, took a hit, with Elon Musk’s revelation of plans to start a new political party adding to the uncertainty surrounding the stock. The 10-year Treasury yield rose amid concerns over the US deficit and inflation risks, while a stronger dollar posed challenges for multinational corporations.
Bit Digital Inc transitioned its corporate treasury to Ethereum, boosting its stock, while other companies like First Phosphate Corp. and Sona Nanotech Inc announced significant developments. Royal Gold, Inc. and CoreWeave engaged in acquisition deals, while Apogee Therapeutics reported positive Phase 2 results for APG777 in atopic dermatitis.
President Trump unveiled additional tariff measures targeting countries like South Africa and Myanmar, causing stocks to drop. Talks with various trading partners indicated a potential escalation in trade tensions, leading to market uncertainties. The day saw notable stock movements, with Tesla shares sliding over 7% following Musk’s announcement of a new US political party.
Looking ahead, markets face a tense week with the expiration of a 90-day tariff pause and the release of the Federal Reserve’s June meeting minutes. Geopolitical risks, OPEC+’s decision to increase oil production, and Tesla’s political distractions added to market concerns. The day opened with the Nasdaq and Russell 2000 leading the decline, setting a cautious tone for the week.
The market sentiment remained cautious as investors awaited further tariff announcements and trade developments. The week ahead was poised to test market resilience, especially as sector-specific tariff hikes could trigger sharp reactions. Despite recent job data indicating a strong US economy, uncertainties surrounding trade talks and earnings reports loomed large.
As the day progressed, reports of tariff letters to multiple countries and ongoing negotiations hinted at potential market reactions. The impact of tariff rates on financial markets was expected to be sector-specific and region-specific, with risk aversion affecting countries unable to reach favorable trade deals with the US. Despite the volatility, markets had adapted to Trump’s trade policies, maintaining a level of sanguinity amidst the uncertainties.
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