US stocks open down on tariff uncertainty. Deadline moved but threat remains. Tesla sinks

USA Today

07-07-2025

U.S. stocks opened lower amid tariff uncertainty after President Donald Trump confirmed higher tariffs are set to go into effect Aug. 1, extending the original deadline of July 9 but leaving the threat of higher tariffs looming.
At 9:37 a.m. ET, the blue-chip Dow eased 0.22%, or 97.76 points, to 44,730.77; the broad S&P 500 shed 0.35%, or 21.69 points, to 6,257.66; and the tech-heavy Nasdaq dropped 0.59%, or 122.27 points, to 20,478.83. The benchmark 10-year yield rose to 4.371%.
Investors had expected Trump's reciprocal tariffs would go into effect on July 9 for nations that didn't yet strike a trade deal with the U.S., but over the weekend Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick said the date is now Aug. 1. White House officials suggested more trade deals will be finalized this week and will notify other countries of higher tariff rates by July 9.
Trump also threatened an extra 10% tariff on countries aligning themselves with the "Anti-American policies" of the BRICS group of Brazil, Russia, India, China and South Africa.
"The policy of 'strategic uncertainty' has revealed, with certainty, that the administration is fearful of its own threats," said Mike O'Rourke, chief market strategist at JonesTrading. "This backpedaling reinforces the market's expectation that the administration's true policy remains one of 'closet capitulation.' "
More oil supply
Oil prices initially slid after the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to increase production by 548,000 barrels a day in August. That's larger than the 411,000 monthly increase in production in May, June and July and more than analysts' had expected. Additionally, the countries will consider adding another roughly 548,000 barrels a day in September at the next meeting on Aug. 3, according to Bloomberg, citing delegates who asked not to be identified.
Despite the cuts, Saudi Arabia raised prices for its main crude grade for Asian buyers in August by $1 to $2.20 a barrel more than the regional benchmark, exceeding expectations. That's seen as a sign Saudi Arabia believes the oil market is strong enough to withstand extra supplies that OPEC+ is adding.
Oil prices recovered their initial losses, last trading up 0.72% at $67.48 per barrel.
Corporate news
Cryptocurrency
Over the weekend, an unknown individual or entity moved $8 billion worth of crypto after holding the digital assets for 14 years and originally bought for less than $210,000, media reports said. The transfer of 80,000 bitcoin reportedly came from eight dormant wallets.
Bitcoin was last down 0.76% at $108,409.90.
(This story was updated with new information.)
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [e-mail] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.