Dow Jones Shies Away from Highs, DJIA Drops 1% on Trade Jitters
U.S. stocks slumped with Dow Jones losing 1%, as investors reacted to President Trump’s plan for tariffs from August 1.
Quick overview
- U.S. stocks fell sharply, with the Dow Jones dropping 1% as investors reacted to President Trump's new tariff plans set to begin August 1.
- The administration announced 25% tariffs on imports from South Korea and Japan, among others, raising concerns about global trade tensions.
- Major indices, including the S&P 500 and NASDAQ, experienced significant losses, driven by fears of supply chain disruptions and weaker global demand.
- Despite the broader selloff, some stocks like Enovix Corporation and WNS Holdings saw gains due to strong demand and positive earnings outlooks.
Live DOW Chart
U.S. stocks slumped with Dow Jones losing 1%, as investors reacted to President Trump’s plan for tariffs from August 1.
Fresh Tariff Threats Rattle Global Trade Outlook
Markets were jolted by news that President Trump intends to hike tariffs starting August 1, intensifying trade tensions and stoking fears of a new round of retaliatory measures.
Trump’s administration announced 25% tariffs on imported goods from South Korea and Japan, adding to a growing list of targets. Other nations face varied tariff rates: Malaysia and Kazakhstan at 25%, South Africa at 30%, and Myanmar and Laos at 40%.
The formal announcement followed reports that letters had been sent to governments outlining the new tariff plan, signaling a more aggressive protectionist shift that could complicate global supply chains.
Stocks Under Pressure Throughout the Session
Although U.S. equities were already trending lower early in the day, the tariff news added significant selling pressure. Concerns about weaker global demand, supply chain disruptions, and a stronger U.S. dollar compounded the risk-off mood, sending major indices sharply into the red.
The Dow Jones Industrial Average closed down 422 points (-0.9%) at 44,406.36, marking one of its worst single-day losses in weeks. The S&P 500 fell 49.37 points (-0.79%) to 6,229.98, with economically sensitive sectors like industrials and materials hit hardest.
The NASDAQ Composite lost 188.59 points (-0.92%) to 20,412.52, as profit-taking in high-growth tech names accelerated. The Russell 2000 small-cap index dropped 1.55% to 2,214.22, underperforming the broader market, as investors shunned high-beta domestic stocks.
Closing Levels for Major U.S. Indices (July 7 Session)
- Dow Jones Industrial Average:
Fell 422.17 points or -0.9%, ending the day at 44,406.36
→ A broad pullback led by weakness in industrials and financials. - S&P 500 Index:
Dropped 49.37 points or -0.79%, closing at 6,229.98
→ Tech and energy sectors weighed heavily, with defensive stocks faring slightly better. - NASDAQ Composite:
Declined 188.59 points or -0.92%, to 20,412.52
→ High-growth and chip stocks underperformed after recent AI-driven gains. - Russell 2000 (Small Caps):
Slumped 34.81 points or -1.55%, settling at 2,214.22
→ Marked the worst performance of the day among the major indices, reflecting deeper risk aversion in smaller, domestic-focused companies.
Notable Decliners
- Bitmine Immersion Technologies (BMNR)
↓ -27.52 (-20.39%) → Heavy volume decline amid crypto volatility. - Core Scientific (CORZ)
↓ -3.17 (-17.61%) → Hit hard by Bitcoin’s slide and rising energy costs. - Apogee Therapeutics (APGE)
↓ -8.22 (-17.32%) → Biotech sector faced profit-taking after recent gains. - Silicon Laboratories (SLAB)
↓ -13.73 (-8.95%) → Concerns over slowing semiconductor demand. - ATS Corporation (ATS)
↓ -2.85 (-8.77%) → Broad industrial weakness impacted shares. - Stocks That Gained Despite the Broader Selloff
- Enovix Corporation (ENVX)
↑ +1.64 (+14.40%) → Surged on strong battery tech demand and positive analyst commentary. - WNS Holdings (WNS)
↑ +9.32 (+14.26%) → Jumped following an upbeat earnings outlook and favorable India outsourcing trend. - Rocket Lab (RKLB)
↑ +3.22 (+9.03%) → Rallied on successful satellite deployment and future launch guidance. - Bilibili Inc. (BILI)
↑ +1.60 (+7.66%) → Gained as China tech sentiment rebounded slightly. - Unity Software (U)
↑ +1.73 (+6.60%) → Recovered some lost ground amid speculation of M&A interest.
Market Outlook: Volatility Ahead
Despite early-session optimism, the mood turned decisively bearish as traders digested the scale of the new trade threats. The sweeping tariff measures risk further destabilizing global commerce at a time when growth concerns are already elevated.
Meanwhile, currency markets saw renewed USD strength, reflecting a flight to safety.
Going forward, investors are bracing for continued volatility, as markets react not only to evolving trade policy headlines but also to upcoming inflation data, Federal Reserve communications, and corporate earnings season, which could provide more clarity—or fuel further uncertainty—in the weeks ahead.
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