US Stocks Kick Off the Week in The Red
US stocks were lower on Monday, with the S&P 500 down 0.4% and Nasdaq falling 0.7% and the Dow Jones losing nearly 80 points. Investors returned from an extended weekend to digest fresh trade developments.
President Trump announced that the US would unveil new trade deals and send formal notifications to countries without agreements, outlining their new tariff levels. He also confirmed that reciprocal tariffs will take effect on August 1, providing a three-week window for further negotiations, as the current 90-day truce expires on Wednesday. In addition, Trump warned that any country aligning itself with the "anti-American policies" of the BRICS bloc would face an additional 10% tariff.
Consumer discretionary was by far the worst performing sector while real estate managed to stay in the green. Tesla shares tumbled more than 7% after Elon Musk announced plans to launch a new political party, raising investor concerns over potential damage to Tesla’s brand and sales.
Source: Trading Economics