4:15pm: Tariffs shake markets
US markets closed sharply lower on Monday as a wave of geopolitical uncertainty and fresh tariff threats sent investors running for cover.
All major indexes ended the session in the red, giving back some of their recent gains and snapping a streak of market optimism.
The Dow Jones dropped 422 points, or 0.9%, to finish at 44,406, while the S&P 500 slipped 0.8% to 6,230. The tech-heavy Nasdaq also lost 0.9%, closing at 20,413, and the small-cap Russell 2000 took the hardest hit, tumbling 1.6% to 2,214.
Much of the selling pressure came after President Donald Trump announced sweeping 25% tariffs on imports from Japan and South Korea, set to take effect August 1. He also hinted at further levies targeting countries aligned with BRICS policies, stoking fears of a broader global trade conflict.
That rhetoric rattled investor confidence and raised the specter of higher input costs, disrupted supply chains, and softer global growth. Stocks that have benefited from recent rallies—especially in the tech sector—were among the biggest losers.
Mega-cap tech names, including Tesla, were particularly weak. Shares of the EV maker plunged after CEO Elon Musk revealed plans to start a new political party, a move that only added to the uncertainty swirling around the stock.
Meanwhile, the 10-year Treasury yield ticked higher, reflecting growing concerns over the US deficit and inflationary risks. A stronger dollar added another headwind for multinational companies.
3:40pm: Proactive news headlines
- Bit Digital Inc has transitioned its corporate treasury to Ethereum, making it one of the largest public ETH holders globally and boosting its stock by over 24%.
- First Phosphate Corp. announced it has successfully produced North America-sourced commercial-grade LFP battery cells, advancing its continental supply chain goals.
- Sona Nanotech Inc has dosed the first patient in a feasibility study of its Targeted Hyperthermia Therapy for advanced melanoma resistant to immunotherapy.
- Graphene Manufacturing Group Ltd has launched global sales of its G Lubricant product across multiple international markets via direct-to-consumer and online channels.
- Santacruz Silver Mining Ltd made a third US$7.5 million payment to Glencore as part of its US$40 million acquisition plan for Bolivian mining assets.
- Lancaster Resources Inc completed the acquisition of the Lake Cargelligo gold project in Australia’s Cobar mining district, securing 100% ownership of the property.
- Fineqia International Inc said its Bitcoin Yield ETP, the first to offer both Bitcoin exposure and DeFi-generated yield, has surpassed C$13.9 million in AUM.
- Thor Energy PLC shares rose after the company reported strong hydrogen and helium soil gas readings at its HY-Range project in South Australia.
- Mkango Resources Ltd announced initial production from its Birmingham-based HPMS recycling plant, aiming to scale up to 2 tonnes/month of recycled NdFeB alloy powder by December 2025.
3:15pm: Trump unveils more tariffs
US President Donald Trump unveiled additional tariff letters targeting several U.S. trading partners, including South Africa and Myanmar. Stocks fell to session lows after Trump announced a 30% tariff on South African imports beginning August 1, and a 40% duty on goods from Myanmar.
The latest measures follow earlier Monday announcements of 25% tariffs on South Korea and Japan as part of Trump’s "UNITED STATES TARIFF Letters" campaign, just days ahead of the July 9 deadline to end the current pause on new duties.
Other countries facing new 25% tariffs include Malaysia, Kazakhstan, and Laos, while Myanmar and Laos were hit with the steepest rates at 40%. The flurry of announcements comes despite recent trade deals struck with China, the UK, and Vietnam.
2:35pm: Stocks on the move
- Royal Gold, Inc. is acquiring Sandstorm Gold Ltd in an all-stock deal valued at approximately $3.5 billion, offering a 21% premium to Sandstorm shareholders.
- CoreWeave announced it will acquire Core Scientific in a $9 billion all-stock transaction, sending shares of both companies lower.
- Apogee Therapeutics reported positive Phase 2 results for APG777 in atopic dermatitis, achieving a 71% reduction in EASI scores compared to 33.8% for placebo.
- Geo Group and CoreCivic shares rose after the passage of Trump’s “Big, Beautiful Bill,” which triples funding for immigrant detention to $45 billion over four years.
- Bit Digital Inc said it has completed its shift to Ethereum as a corporate treasury asset, becoming one of the largest public ETH holders and lifting shares over 24%.
- First Phosphate Corp. announced the successful production of commercial-grade LFP battery cells using North American minerals, advancing its localized battery supply chain strategy.
- Capgemini will acquire WNS Holdings for $3.3 billion in cash, paying a 17% premium over WNS’s July 3 closing price.
- Hochschild Mining, Glencore, and Fresnillo led declines in mining stocks, dragging down the FTSE 350 Mining Index amid ongoing industrial metal losses.
- Thor Energy PLC shares rose after reporting strong soil gas results at its HY-Range project in South Australia, with hydrogen readings up to 3,000 ppm.
Mkango Resources Ltd shares advanced after announcing initial commercial production of recycled rare earth magnet material at its Birmingham plant.
1:20pm: Markets underestimating tariff impacts
Stock markets, after reaching record highs, may have underestimated the impact of reciprocal tariffs, according to Kathleen Brooks.
With more tariff announcements expected, risk sentiment could fade, benefiting the US dollar while pressuring the yen and won.
"Once again, Trump is playing hardball when it comes to trade policy," Brooks said, adding that markets are now waking up to the risks this poses for global growth and inflation.
12:40pm: Tariff escalation
US stocks hit session lows after President Trump announced plans to significantly raise tariffs on imports from Japan and South Korea, stoking fears of renewed trade tensions.
The Dow Jones was down 1.1%, while the S&P 500 and Nasdaq each fell 0.9% as risk sentiment deteriorated across global markets.
According to Kathleen Brooks, research director at XTB, Trump has begun “telling the US’s main trading partners what tariff rate he will impose on their imports. First up is Japan and South Korea.” Both nations will now face 25% tariffs, up from the current 10%, a move Brooks called “a blow for hopes that Trump would scale back tariff threats and de-escalate a trade war.”
Currency markets reacted swiftly. The Japanese yen dropped nearly 1% against the dollar, making it the weakest G10 performer on the day. The South Korean won also declined as traders dumped currencies in the crosshairs of Trump’s trade policy. The euro weakened as well, with EUR/USD falling toward $1.17, near session lows.
Trump posted a letter on Truth Social addressed to South Korea’s leader, warning that any retaliatory tariffs would be met with equivalent U.S. measures plus the new 25% rate. The letter was notably confrontational, citing “years of trade imbalances” and threatening penalties for any attempts to circumvent the tariffs via third-country transshipment.
The former president did signal one off-ramp, noting that tariff rates could fall to 0% if South Korean firms shift production to the U.S. He added that those companies could receive manufacturing approvals “in a matter of weeks,” although it's uncertain whether they will take that route.
11:40am: TikTok eyes US app
TikTok is preparing to release a new version of its app for US users in September ahead of a planned sale of its American operations, The Information reported over the weekend.
The new app, internally referred to as “M2,” will be made available in US app stores and is expected to eventually replace the current version, which will continue to function until March 2026, the report said.
The move comes as a group of American investors — including Oracle, Blackstone, and Andreessen Horowitz — work to finalize a deal to acquire the US arm of the popular video-sharing platform.
The consortium is reportedly ironing out legal and financial details with TikTok’s Chinese parent company, ByteDance, though the transaction is still awaiting approval from Beijing.
11:10am: Musk's 'America Party'
Tesla Inc (NASDAQ:TSLA) shares slid over 7% on Monday morning as investors reacted to Elon Musk’s announcement of a new US political party.
The proposed “America Party” deepens Musk’s shift into partisan politics and has raised questions about his focus on Tesla.
Dan Ives, a tech analyst at Wedbush and long-time Tesla bull, described Musk as the company’s “biggest asset” and warned that his political activity could drag on the carmaker's valuation.
He added that the board may need to intervene if Musk pushes ahead.
"Very simply, Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story," Ives said in a note.
"While the core Musk supporters will back Musk at every turn, no matter what, there is a broader sense of exhaustion from many Tesla investors that Musk keeps heading down the political track."
10:35am: Week ahead
US stock markets face a tense week ahead as attention turns to Wednesday’s expiration of a 90-day pause on reciprocal tariffs. President Trump has signaled he will not extend the reprieve and will begin notifying countries of new tariff rates—an announcement expected as early as Monday.
While markets have remained calm in recent weeks, analysts warn that sector- and region-specific tariff hikes, particularly in metals and autos, could trigger sharp market reactions. Uncertainty around the outcome of trade talks with key partners like Japan and Canada is adding to investor jitters, even as recent jobs data suggests the US economy remains resilient.
Beyond trade tensions, investors will also focus on the release of the Federal Reserve’s June meeting minutes, which may shed light on internal divisions over future rate cuts. Meanwhile, energy stocks are under pressure following OPEC+’s decision to significantly boost oil production, and Tesla shares are tumbling after Elon Musk announced a new political party, sparking fears of further distraction from the company’s operations.
With a quiet economic calendar and the second-quarter earnings season just beginning—Delta Air Lines is set to report Thursday—market sentiment could be tested if geopolitical risks escalate or early earnings disappoint.
9.55am: Nasdaq and Russell 2000 lead decline at open
Wall Street has come back with a sore head after the long weekend, with the Dow Jones down 0.2%, the S&P 500 falling 0.3%, the Nasdaq dropping 0.45% and the Russell 2000 sinking 0.9%.
Tesla, down 7.4%, is leading the S&P decline, with most of the top 10 largest stocks in the red or flat at best.
Other sizeable falls include utility Edison International, down 3.1%; meat producer Tyson Foods, down 3%, and energy management specialist Enphase Energy, down 2.8%.
8.05am: Nasdaq to lead stumbling start to week
US stocks are predicted to start in the red on Monday as Wall Street returns from the long weekend with tariffs front and center.
Futures for the S&P 500 and Nasdaq 100 were down 0.3% and 0.4% respectively, while Dow Jones futures were just below flat.
Tesla was expected to be the difference, with the stock down 6.5% in pre-market trading as investors fret about the beef between Elon Musk and Donald Trump, which would equate to around $64 billion of value potentially being lost when the market opens.
Investors were reacting to Musk’s announcement of a new US political party, with the proposed 'America Party' deepening the Tesla boss's shift into partisan politics, raising questions about his focus on Tesla and potential retaliation from President Trump.
Dan Ives, a tech analyst at Wedbush and long-time Tesla bull, described Musk as the company’s “biggest asset” and warned that his political activity could drag on the carmaker's valuation.
Elsewhere, the President will send tariff letters to 12-15 countries at noon Washington time, informing those that have not yet signed a US trade agreement what tariffs will be imposed on them.
Treasury Secretary Scott Bessent said that these tariffs will start from 1 August, but it was not clear if countries have until then or only until Trump's 9 July deadline, when the 90-day pause runs out, to complete trade negotiations.
Reports suggested that the European Union is willing to accept a 10% universal tariff if exemptions for areas such as autos, steel and aluminum are provided, but there were suggestions that the President is unwilling to budge on these key sectors.
Talks with Japan did not seem to be progressing, but a deal with India, according to Bessent, is "very close".
Headline risk is rising, said market analyst Kathleen Brooks at XTB. "As news of the letters and deals trickle out, we could see a big market reaction late on Monday. [...] as we hear more about US tariff rates in the coming days, the impact on financial markets could be sector specific and region specific, with risk aversion hitting those countries who are not in a good position to reach a deal with the US."
But she said the tariff story could be "a micro story", impacting only the markets of those countries and sectors most deeply affected, as long as the "macro story remains strong", especially after last week’s US payrolls report showed that the US labour market remains strong.
"The markets have adapted to Trump’s style of government, and the twists and turns in his quest for fairer trade deals for America.
"Traders and investors no longer take the President at his word, for example, few expect him to reapply the crippling tariff rates that he proposed back in April, which is why risk sentiment, especially in stock markets, has been sanguine in recent weeks and volatility has remained subdued."