- Markets prolonged their downward slide on Tuesday as traders remained cautious in regards to the looming tariff deadline, with the S&P 500 dipping 0.07%.
After a celebratory June, which noticed the S&P 500 attain file highs, July is off to a dismal begin. The specter of tariffs looms as soon as once more for traders, as President Trump insists he’ll stand by a brand new negotiation deadline of Aug. 1 for the bruising marketing campaign of levies that he introduced in April.
Shares continued their downward dip from Monday, with the S&P 500 falling 0.07%, pushed by modest drops in blue-chip firms like Amazon and Microsoft. And lest cautious onlookers hope for one more delay, Trump posted on Reality Social that Aug. 1 could be the ultimate alternative for U.S. commerce companions to come back to the desk, after beforehand stating the deadline was not “100% agency.”
“No extensions shall be granted,” he wrote on his social-media platform. “Thanks in your consideration to this matter!”
Trump’s second time period in workplace has been an financial rollercoaster, with shares falling dramatically after his Liberation Day tariff announcement in April earlier than recovering after he backed off from the steep calls for. However at the same time as markets ticked again up, the unique extension of July 9 remained as a ticking time bomb. And whereas Trump signed an govt order on Monday to push the deadline as soon as once more to Aug. 1, it wasn’t sufficient to calm traders.
The approaching reciprocal tariffs usually are not the one anticipated financial coverage from the White Home this week, with White Home Press Secretary Karoline Leavitt and Treasury Secretary Scott Bessent telling CNBC on Monday that it was going to be a “busy couple of days.” On Tuesday, Trump introduced a brand new 50% tariff on copper, although he didn’t set a date that it will go into impact. Thus far, the White Home has solely hammered out offers with Britain and Vietnam, and an anticipated cope with India stays unsure.
Whereas markets stay jumpy, Trump continues to place stress on Federal Reserve Chair Jerome Powell. On Tuesday, Trump informed reporters that Powell ought to “resign instantly,” as soon as once more criticizing the central banker’s determination to not decrease rates of interest. Powell, nevertheless, has cited the potential affect of tariffs on inflation as a motive the Fed has stored charges regular.
Regardless of the volatility, shares haven’t fallen as sharply as they did in April when Trump first introduced his tariffs marketing campaign, sending markets right into a downward spiral. And whereas his Tuesday submit on Reality Social insisted that Aug. 1 could be the final probability for nations to barter, he has repeatedly moved the goalposts prior to now.
One brilliant spot amid Tuesday’s sea of pink was Tesla, which rose 1.33% on Tuesday regardless of CEO Elon Musk’s public spat with Trump. In a brand new be aware on Tuesday morning, Wedbush analyst Dan Ives wrote that Tesla has reached a “tipping level,” calling for the board to finish the “cleaning soap opera.” One in every of his suggestions was for Musk to scale back his work, together with his current marketing campaign to create a brand new political celebration.
After Ives posted his calls for to X, Musk issued a quick reply: “Shut up, Dan.”
