New Tariffs Incoming as Stock Market Reacts
Stocks have dropped slightly on Monday as the market reacts to Donald Trumps new tariff campaign with numerous trade partners.
Quick overview
- Donald Trump is proposing new tariffs ranging from 10-70% on various trade partners, causing a dip in the stock market.
- As trading began on Monday, the Dow Jones fell by 0.22%, the Nasdaq Composite dropped 0.56%, and the S&P 500 decreased by 0.42%.
- Nvidia and Microsoft stocks are experiencing minor declines, while Uber Technologies saw a 2.63% increase despite potential competition.
- The tariffs that were previously paused will not take effect until August 1st, adding uncertainty to the market.
On Monday, Donald Trump is sending out at least a dozen new letters to countries regarding proposed tariffs. The stock market has dipped as a result and could continue to decline for now.
New tariffs mean new problems for investors, and the stock market is down Monday morning as Trump issues new tariffs to a number of countries. He is proposing tariffs on trade partners ranging from 10-70%, and these could dramatically increase selling pressure across the stock market.
As Monday trading began, the Dow Jones dropped 0.22%, and the Nasdaq Composite was down 0.56% in one of its largest drops in weeks as tech stocks are expected to take the brunt of tariffs. The S&P 500 also fell, losing 0.42%. These stock indices were all up throughout last week, making some all-time highs and very positive numbers. Perhaps that is why Trump feels he can now issue these tariff letters and not bring the market down too much.
The tariffs that were on pause for 90 days will not go into effect right away. The pause period is practically over at this point, but Trump spoke to reporters this week and told them that those tariffs will not be active until August 1st. A further tariff of 10% will be imposed on any countries that are allying with BRICS- a coalition of countries looking to replace the U.S. dollar as the global standard.
Recent Stock Movements to Know about
Nvidia (NVDA) is one of the top market movers right now and is down 0.72% in early Monday trading. This stock managed to hit a record high in June and is still elevated. New tariffs could hurt Nvidia, but during this time where proposed tariffs have not gone into effect and new tariffs are possible but not a certainty, Nvidia should be able to stay relatively high.
Microsoft (MSFT) stock also remains elevated, although it is down 0.38% Monday morning. This stock also hit a record high last week and will likely take a minor beating with these new tariff talks but could still retain much of its gains.
One stock not likely to be bothered by tariffs is Uber Technologies (UBER). The transportation technology company saw its stock price go up by 2.63% on Monday and is doing well despite some new competition from Tesla (TSLA) in its Texas markets. Uber hit an all-time high last week and is a very healthy stock right now, although it may experience some minor pullback as it is considered somewhat overvalued.
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