The final results of the session indicate that the Dow Jones Industrial Average lost 0.94%, while the Nasdaq fell 0.92% and the broader S&P 500 index declined by 0.79%.
“Tariffs now seem much more tangible to the market,” emphasized Steve Sosnick, an analyst at Interactive Brokers, to AFP.
The U.S. President today promised a 25% tariff surcharge on Japan, South Korea, Kazakhstan, and Malaysia, marking a new step in his campaign to disrupt international trade.
The surcharge will be heavier for South Africa (30%), but especially for Laos and Myanmar (both at 40%).
These additional tariffs will be imposed “from August 1,” according to Trump.
The U.S. head of state had previously scheduled the additional tariffs to take effect on July 9.
Washington also assured that any tariff response would be met with a new American tariff of the same magnitude.
“There are still opportunities for negotiations (…) and as long as they exist, investors will not react drastically,” observed Sosnick.
Market participants are accustomed to Trump’s frequent changes of opinion regarding trade, and “no one wants to overreact right now,” the analyst added.
Moreover, “this week promises to be bad for economic data, and the earnings season only begins next week,” he noted.
“The market is a bit reluctant to sell” and prefers to remain watchful, he added.
Wall Street is awaiting the release of the Federal Open Market Committee (FOMC) meeting minutes on Wednesday.
In the bond market, the yield on the 10-year U.S. Treasury note rose to 4.39% around 9:15 PM (Lisbon time), compared to 4.35% at Friday’s close.
Shares of electric vehicle specialist Tesla fell 6.79% to $293.94 after its CEO, Elon Musk, announced on Saturday the creation of his own political party, the “America Party.”
“Tesla investors were finally hoping Musk would fully focus on (…) his business interests and not his political interests,” Sosnick further explained.
“This announcement is seen exactly as the kind of distraction that investors do not want,” he pointed out.
App-based transportation giant Uber gained ground (+3.25%, to $96.67), demonstrating investor confidence in the group thanks to the expansion of its services, especially through the partnership with autonomous vehicle startup Waymo.
Shares of prison companies, such as GEO Group (+4.38%, to $26.46) and Corecivic (+3.97%, to $22.53), surged after Trump sanctioned his “big and beautiful budget bill,” which includes a significant increase in funding for migrant detention centers.
