U.S. stocks ended Tuesday mixed as investors weighed the economic consequences of President Donald Trump’s renewed tariff threats. The S&P 500 slipped 0.1%, the Dow Jones Industrial Average fell 165 points (0.4%), and the Nasdaq inched up 0.03%.
Trump Holds Firm on Tariff Deadline
President Trump announced that his administration will not extend the August 1 deadline for implementing new reciprocal tariffs, which had previously been delayed from July 9. The decision has reignited concerns over a potential escalation in global trade tensions if negotiations stall.
On Monday, Trump issued formal notices imposing new tariffs on several countries. These include:
- 25% on imports from South Korea, Japan, Malaysia, and Kazakhstan
- 30% on South Africa
- 32% on Indonesia
- 35% on Bangladesh
- 36% on Thailand
These tariffs will apply independently of existing sector-specific tariffs, such as those on autos, steel, and aluminum.
Notably, India and the European Union were left out of this latest round of tariff letters—an omission analysts view as a possible signal of progress in ongoing trade talks with those regions.
Wolfe Research described the announcements as “decidedly mixed news” for markets. While the new tariffs and a recent preliminary agreement with Vietnam could generate up to $54 billion in additional annual revenue for the U.S. government, the looming deadline keeps the threat of renewed trade tensions alive.
Still, some investors remain confident that Trump will act pragmatically to avoid rattling markets—especially in light of past volatility following his “Liberation Day” tariff announcement.
“Nothing has materially changed yet—just letters were sent. But the direction of U.S. trade policy appears increasingly hawkish,” Wolfe analysts wrote in a note to clients.
Amazon Launches Extended Prime Day
Amazon (NASDAQ: AMZN) kicked off its Prime Day sales event on Tuesday, extending it to four days following customer feedback requesting more time to shop.
During the 2024 Prime Day, U.S. consumers spent $14.2 billion, up 11% from the prior year, according to Adobe Analytics data reported by Reuters.
Hershey Names New CEO
Hershey Co. (NYSE: HSY) shares declined after the company announced Kirk Tanner, an executive at Wendy’s, will take over as CEO starting August 18. He replaces longtime leader Michele Buck, who has served over two decades with the company.
SoFi Hits Record on Expansion into Private Markets
SoFi Technologies Inc. (NASDAQ: SOFI) surged to a new all-time high after unveiling plans to offer retail investors access to private companies in sectors including AI, machine learning, and space technology—part of its broader push into alternative investments.
Fed Minutes Awaited
Looking ahead, investor attention turns to the Federal Reserve’s June meeting minutes, due Wednesday. The Fed has held rates steady and signaled caution amid uncertainty over the inflationary effects of Trump’s evolving tariff agenda.
Leave a Reply