U.S. stocks closed relatively flat despite President Donald Trump’s tougher stance on tariffs, including threats of up to 200% tariffs on pharmaceuticals and a 50% tariff on copper imports. Trump’s remarks during a cabinet meeting indicated the possibility of imposing steep tariffs on pharmaceuticals and sending a letter to the European Union within two days to pressure a trade deal. Initially, there was uncertainty as Trump stated the Aug. 1 deadline for tariffs would not be extended, briefly impacting stock prices.
The Dow fell 0.37% to 44,240.76, the S&P 500 dipped 0.07% to 6,225.52, and the Nasdaq saw a slight increase of 0.03% to 20,418.46. The 10-year yield rose to 4.399%. Trump’s threats also targeted countries aligning with the “Anti-American policies” of BRICS nations, leading to market fluctuations earlier in the week.
Despite trade tensions, analysts like Bret Kenwell from eToro and Savita Subramanian from Bank of America remain optimistic about Corporate America’s resilience. The effective tariff rate on U.S. imports could rise significantly if trade deals are not reached, according to Paul Ashworth of Capital Economics. However, the impact on consumer prices has been limited, with tariff revenues being utilized following recent legislative actions.
Speculation surrounds countries like the European Union, India, Taiwan, Brazil, Turkey, and Australia, which have not yet received tariff letters, possibly indicating progress in negotiations. Consumers are showing confidence in inflation expectations, with surveys reflecting a stable outlook amid the ongoing trade uncertainties.
Cryptocurrency:
Elon Musk, CEO of Tesla, announced that his new America Party will back bitcoin. In a separate development, Nasdaq-listed real estate firm Murano disclosed the purchase of 21 bitcoin as part of its digital currency holdings. The company also finalized an equity agreement worth up to $500 million to further invest in bitcoin. The current value of bitcoin stands at $108,774, up by 0.44%.
Corporate News:
Amazon’s Prime Day sales have started and will extend through July 11, marking the first time the event runs for four days instead of two. Despite this, shares declined by 1.84%. Solar stocks such as SunRun and First Solar faced setbacks as President Trump’s executive order accelerated the enforcement of the halt to clean-electricity tax credits. SunRun shares plummeted by 11.43%, while First Solar stock dropped by 6.54%. Honeywell announced plans to explore strategic alternatives for its businesses catering to the transportation and logistics sectors, resulting in a slight increase in its stock value. Boeing reported the delivery of 60 planes to customers in June, totaling 150 deliveries for the second quarter, the highest number since 2023. Boeing’s shares closed marginally higher.
For more financial updates, contact Medora Lee, a reporter covering money, markets, and personal finance at USA TODAY, via email at mjlee@usatoday.com. You can also subscribe to the free Daily Money newsletter for valuable personal finance tips and business news every Monday through Friday.
Note: This article has been updated with the latest information.
