Dow, S&P 500, Nasdaq retreat as Trump reignites trade tensions with flurry of letters, August deadline

JovieDigital Marketing2025-07-085610

US stocks fell on Monday as President Trump threatened tariffs on a handful of US trading partners, including moving forward with 25% levies on imports from Japan and South Korea starting in August.

The Dow Jones Industrial Average (^DJI) slipped more than 400 points, or almost 1%. The S&P 500 (^GSPC) also backed off 0.8%. The tech-heavy Nasdaq Composite (^IXIC) dropped roughly 0.9% as Tesla (TSLA) stock sank amid worries about CEO Elon Musk's plan to launch a political party.

Stocks pulled back from all-time closing highs with Trump's new tariff deadline in focus. On Monday, Trump posted letters to social media directed at the leaders of South Korea and Japan. The president said the US will impose 25% levies on imports from those countries starting on Aug. 1.

Trump subsequently posted letters to the leaders of several other countries, including South Africa and Malaysia, outlining tariffs ranging from 25% to 40%.

Meanwhile, Trump said late Sunday that any country aligning itself with the "Anti-American policies of BRICS" will face an additional 10% tariff. "There will be no exceptions to this policy," he said in a post to social media. The warning came after BRICS — a group of countries including key US trading partners China and India — criticized Trump's tariff policy at its summit at the weekend.

The moves have ramped up already-high trade tensions as nations race to clinch tariff deals ahead of Trump's self-imposed deadline of July 9, when his "pause" on steep April tariffs would go back into effect. Global markets have been bracing for that potential shock, with the US only having reached deals with the UK and Vietnam, as well as a framework toward an agreement with China.

On Sunday, Treasury Secretary Scott Bessent and Trump confirmed that while letters would be sent out this week informing countries of their tariff rates, those duties would not go into effect until Aug. 1.

Read more: The latest on Trump's tariffs.

Meanwhile, earnings are coming back into the conversation this week, with Thursday's report from Delta (DAL) serving as the unofficial kickoff to the second quarter season.

LIVE COVERAGE IS OVER 18 updates

Mon, July 7, 2025 at 8:01 PM UTC Ines Ferré
Stocks retreat as Trump unveils tariff letters to US trading partners

Stocks fell on Monday as President Trump unveiled tariff letters to a handful of US trading partners, including Japan, North Korea, and South Africa, raising uncertainty over trade. The Dow Jones Industrial Average (^DJI) slipped more than 400 points, or roughly 1%.

The S&P 500 (^GSPC) dropped 0.8%. The tech-heavy Nasdaq Composite (^IXIC) fell almost 1%, led by shares of Tesla (TSLA) which sank over CEO Elon Musk's plan to launch a political party.

Trump posted screenshots of letters on social media directed at the leaders of different countries, including South Korea, Japan, and South Africa outlining tariffs ranging from 25% to 40%.

Mon, July 7, 2025 at 7:15 PM UTC Ines Ferré
How Trump's tax bill could affect the healthcare industry

Yahoo Finance's Anjalee Khemlani reports:

Read more here.

Mon, July 7, 2025 at 6:34 PM UTC Ines Ferré
Trump reveals more tariff letters

President Trump revealed more tariff letters on Monday directed at the leaders of US trading partners, including Myanmar and South Africa.

Stocks sank to session lows after Trump posted that a 30% tariff on imports from South Africa would start on August 1. The US also plans to impose levies of 40% on Myanmar-made goods.

Earlier on Monday, Trump began unveiling his "UNITED STATES TARIFF Letters", announcing 25% duties on both South Korea and Japan.

The letters come ahead of Trump's July 9 tariff pause deadline on many countries. In recent weeks, the US announced a trade framework with China, a deal with the UK, and one with Vietnam.

Mon, July 7, 2025 at 6:00 PM UTC Ines Ferré
One of Tesla's most important shareholders says all's well with Elon Musk and the EV maker

Yahoo Finance's Francisco Velasquez reports:

Read more here.

Mon, July 7, 2025 at 5:11 PM UTC Ines Ferré
Trump 25% tariffs on South Korea and Japan are nearly identical to his 'Liberation Day' rates

Yahoo Finance's Ben Werschkul reports:

Read more here.

Mon, July 7, 2025 at 4:39 PM UTC Ines Ferré
Trump announces 25% tariffs on Japan, South Korea

Stocks moved to session lows on Monday after President Trump announced 25% tariffs on goods imported from Japan and South Korea, starting on Aug. 1.

The Dow Jones Industrial Average (^DJI) fell roughly 400 points, or about 1%. The S&P 500 (^GSPC) also retreated from its session high. The tech-heavy Nasdaq Composite (^IXIC) rose about 1%.

The session lows came after Trump posted on social media letters directed at Japan and South Korea, stating the US will impose 25% tariffs on goods imported from those countries.

The president wrote that there will be no tariffs if Korean or Japanese companies manufacture in the US.

The letters also stated that if either country increases tariffs on US goods, then Washington will add further levies.

Mon, July 7, 2025 at 3:25 PM UTC Ines Ferré
Oil prices likely headed lower as OPEC floods market

Wall Street analysts predict a significant drop in oil prices by the end of the year as increased supply is expected to flood the market.

However, as of Monday, West Texas Intermediate crude (CL=F) was trading above $67 per barrel, and Brent crude (BZ=F), the international benchmark, was above $69 per barrel. The session rise occurred despite the Organization of the Petroleum Exporting Countries (OPEC) and its allies announcing output increases over the weekend.

"All in all, the supply picture definitely looks to be elevating; however, the stronger demand is remaining above expectations as well, hence the choppy trade," said Dennis Kissler, senior vice president at BOK Financial, in a note on Monday.

OPEC cited lower global oil inventories as a reason to boost output in August by 548,000 barrels per day. This marks the cartel's fourth consecutive monthly increase and was larger than anticipated.

"Saturday's announcement to accelerate supply hikes suggests that the strategic shift to normalizing spare capacity and market share, supporting internal cohesion, and disciplining US shale supply is continuing," Goldman Sachs analysts Daan Struyven and his team noted on Sunday.

Struyven and his team anticipate OPEC will increase production yet again in September, and maintained their price forecast with Brent averaging $59 in the fourth quarter of 2025 and $56 in 2026.

Mon, July 7, 2025 at 2:51 PM UTC Grace O'Donnell
Tesla stock drops 7% as Musk feuds with Trump, EV tax credits go away

Tesla (TSLA) stock slid on Monday, falling 7% as CEO Elon Musk and President Trump's feud erupted again and as investors grew concerned over the loss of electric vehicle tax credits from Trump's budget bill.

Reuters reported that short sellers of the stock were set to make $1.4 billion after the stock slump, according to data analytics firm Ortex.

Over the weekend, Musk wrote on X that he was forming a new political party, the America Party. Trump responded on social media by saying the Tesla CEO had gone "completely 'off the rails.'"

Yahoo Finance's Pras Subramanian reports:

Read more here.

Mon, July 7, 2025 at 1:59 PM UTC Grace O'Donnell
Citi lifts Nvidia's price target on booming sovereign AI demand

Citi lifted its price target for Nvidia stock (NVDA) on Monday, citing the expanding AI market, though shares of the AI chipmaker fell 0.5% in early trading.

Yahoo Finance's Francisco Velasquez reports:

Read more here.

Mon, July 7, 2025 at 1:32 PM UTC Ines Ferré
Stocks fall amid trade uncertainty as Trump appears to extend tariff deadline

Stocks opened lower amid renewed trade uncertainty after President Trump extended a tariff pause but issued new threats toward countries aligning with "Anti-American policies."

The Dow Jones Industrial Average (^DJI) fell below the flat line. The S&P 500 (^GSPC) retreated 0.3% from its record high. The tech-heavy Nasdaq Composite (^IXIC) dropped 0.5%, and Tesla (TSLA) shares sank as CEO Elon Musk announced a new political party.

Comments from Trump sparked trade uncertainty over the weekend when he appeared to extend a July 9 tariff pause deadline to Aug. 1. He also said late Sunday that any country aligning itself with the "Anti-American policies of BRICS" will face an additional 10% tariff.

Mon, July 7, 2025 at 1:22 PM UTC Grace O'Donnell
CoreWeave to buy crypto miner Core Scientific for $9 billion

CoreWeave (CRWV) announced Monday it will buy crypto miner Core Scientific (CORZ) in an all-stock deal valued at about $9 billion.

Shares of the Nvidia-backed (NVDA) company fell 4.6% just ahead of the opening bell, while Core Scientific stock dropped nearly 18%.

Reuters reports:

Read more here.

Mon, July 7, 2025 at 12:51 PM UTC Grace O'Donnell
Amazon stock edges higher ahead of Prime Day kickoff

Amazon stock (AMZN) edged 0.3% higher in premarket trading on Monday ahead of the kickoff of its Prime Day sales event.

Online spending is expected to surge to $23.8 billion across US retailers during Amazon's four-day event, according to an Adobe Analytics forecast.

Amazon extended the sales period to four days from two days. Reuters reported that sales from July 8 to 11 are projected to rise 28.4% compared with the same period last year. Online sales hit $14.2 billion during the two-day Amazon shopping event last year.

"This is equivalent to two Black Fridays," Adobe noted in the report.

Walmart (WMT) and Target (TGT), which are holding competing sales events, saw their shares drop marginally premarket.

Read more here.

Mon, July 7, 2025 at 12:00 PM UTC Grace O'Donnell
US consumers plan to cut back this summer: Yahoo Finance/Marist Poll

Yahoo Finance's Brooke DiPalma reports:

Read more here.

Mon, July 7, 2025 at 11:38 AM UTC Jenny McCall
Good morning. Here's what's happening today.

Earnings: No notable earnings releases.

Economic data: No notable economic releases.

Here are some of the biggest stories you may have missed over the weekend and early this morning:

Trump warns of extra 10% tariff for 'anti-American' BRICS

Markets await clarity as Trump tariff deadline looms

Tesla stock sinks as Musk's 'America Party' worries investors

US consumers to cut summer spending on tariff worries: Poll

Trump is already making the next Fed chair's job harder

Amazon Prime Day set to lift US online sales to $23.8B: Adobe

Trump slams Musk's plan for rival political party

How China's Xiaomi succeeded where Apple failed

Mon, July 7, 2025 at 11:31 AM UTC Jenny McCall
Trending tickers: Wolfspeed and Tesla

Here are some top stocks trending on Yahoo Finance in premarket trading:

Wolfspeed: (WOLF) Shares in semiconductor company Wolfspeed surged over 20% before the bell on Monday, after it filed an unexpected Chapter 11 bankruptcy last month. While bankruptcy usually signals financial distress, investors reacted positively to the filing.

Tesla (TSLA) stock took a hit on Monday, falling 6% in premarket trading after CEO Elon Musk's plans to launch a new US political party were announced.

Mon, July 7, 2025 at 10:27 AM UTC Jenny McCall
Metals fall as Trump stirs trade uncertainty with BRICS threat

Metals had a rough start to the week, with copper (HG=F) and other industrial metals extending losses after President Trump injected fresh uncertainty into his trade agenda with a warning to impose a 10% tariff on any country that supports what he called BRICS "anti-American" policies.

Trump posted on Truth Social saying: Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!

Trump's threat caused metals fall on Monday.

Bloomberg News reports

Read more here.

Mon, July 7, 2025 at 9:45 AM UTC Brian Sozzi
The Tesla pounding

Tesla (TSLA) shares are getting run over right out of the gate post-holiday weekend.

The stock is down 7% premarket as president Trump and Elon Musk return to public battle. The general vibe from those I have chatted with is that Musk creating his own political party is the last thing Tesla shareholders want to see. Where is the board of directors here to get this guy under control?

However, lost in the sauce today is that the new tax and spending bill signed into law by Trump ends the EV tax credit on Sept. 30. That's further bad news for Tesla, argues William Blair analyst Jed Dorsheimer.

"The elimination of the corporate average fuel economy (CAFE) fines requires a reset in expectations," Dorsheimer wrote. "While the $7,500 tax credit is likely to affect demand, the combination of a demand headwind and over $2 billion in profit from regulatory credits at risk may be too much for investors to bear. Unlike the EV tax credit, we expect the reduction in regulatory credit revenue to result in a direct hit to profitability, prompting yet another across-the-board reset to Street models."

Tesla is our "stock of the day" on Yahoo Finance's Opening Bid this morning. Tune in around 9:40 am ET here to get some fire analysis!