Wall Street slips amid new tariff turmoil
Trump ramped up trade tensions over the weekend, vowing to slap a 30 per cent tariff on most imports from the European Union and Mexico starting August 1 - a move that leaves the clock ticking for last-minute trade deals.
The EU extended its pause on retaliatory measures until early August, holding out hope for a negotiated truce.
The White House said talks with the EU, Canada and Mexico are still underway.
Trump's latest salvo follows last week's tariff offensive, which targeted the United States' close allies like Canada, Japan and South Korea, and a 50 per cent duty on copper.
Yet, investors barely flinched, having grown accustomed to Trump's tariff threats and his track record of last-minute reversals.
"The stock market's muted reaction to the latest volley of tariff headlines suggests investors may be growing numb to them, or are deciding that the tariff bark will likely be worse than the eventual bite," said Chris Larkin, managing director, trading and investing, E*TRADE from Morgan Stanley.
In early trading on Monday, the Dow Jones Industrial Average fell 27.60 points, or 0.06 per cent, to 44,343.20, the S&P 500 lost 11.72 points, or 0.19 per cent, to 6,248.16 and the Nasdaq Composite lost 36.06 points, or 0.17 per cent, to 20,549.58.
RBC Capital Markets raised its year-end S&P 500 target to 6,250 - its second upgrade this year - citing upbeat investor sentiment and optimism about the economic outlook through 2026.
Focus was also shifting to the commencement of the second-quarter earnings season, with Wall Street's banking giants reporting on Tuesday.
Attention was also on Tuesday's consumer price data, expected to show an uptick in US inflation in June, as sellers began raising prices to factor in Trump's sweeping tariffs.
Meanwhile, producer and import price reports are due on Wednesday and retail sales figures are due on Thursday.
While traders have almost fully ruled out a July rate cut, the probability for a September move stands at 61 per cent, according to CME FedWatch.
In an interview on Fox Business, Cleveland Fed president Beth Hammack rejected the need to immediately lower interest rates.
Most S&P sectors were in the positive domain but the information technology index was a drag, down 0.8 per cent.
Chip stocks came under pressure, with Micron Technology falling about 5 per cent and Nvidia down 1.2 per cent.
Among other stocks, Tesla rose 1.3 per cent after CEO Elon Musk ruled out a merger between the electric vehicle maker and xAI.
Crypto stocks ticked up after bitcoin topped $US120,000 for the first time.
Coinbase global rose 2.7 per cent, Bitfarms gained 5.1 per cent and Riot platforms was up 5.4 per cent.
Waters Corp dropped 9.4 per cent after the lab equipment maker agreed to merge with rival Becton, Dickinson and Company's Biosciences & Diagnostic Solutions unit in a $US17.5 billion ($A26.7 billion) deal.
Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE while advancing issues outnumbered decliners by a 1.13-to-1 ratio on the Nasdaq.
The S&P 500 posted nine new 52-week highs and four new lows while the Nasdaq Composite recorded 41 new highs and 28 new lows.
Wall Street has fallen marginally as investors ran into US President Donald Trump's latest tariff threats against the European Union and Mexico, starting a week loaded with economic data and major second-quarter earnings.
Trump ramped up trade tensions over the weekend, vowing to slap a 30 per cent tariff on most imports from the European Union and Mexico starting August 1 - a move that leaves the clock ticking for last-minute trade deals.
The EU extended its pause on retaliatory measures until early August, holding out hope for a negotiated truce.
The White House said talks with the EU, Canada and Mexico are still underway.
Trump's latest salvo follows last week's tariff offensive, which targeted the United States' close allies like Canada, Japan and South Korea, and a 50 per cent duty on copper.
Yet, investors barely flinched, having grown accustomed to Trump's tariff threats and his track record of last-minute reversals.
"The stock market's muted reaction to the latest volley of tariff headlines suggests investors may be growing numb to them, or are deciding that the tariff bark will likely be worse than the eventual bite," said Chris Larkin, managing director, trading and investing, E*TRADE from Morgan Stanley.
In early trading on Monday, the Dow Jones Industrial Average fell 27.60 points, or 0.06 per cent, to 44,343.20, the S&P 500 lost 11.72 points, or 0.19 per cent, to 6,248.16 and the Nasdaq Composite lost 36.06 points, or 0.17 per cent, to 20,549.58.
RBC Capital Markets raised its year-end S&P 500 target to 6,250 - its second upgrade this year - citing upbeat investor sentiment and optimism about the economic outlook through 2026.
Focus was also shifting to the commencement of the second-quarter earnings season, with Wall Street's banking giants reporting on Tuesday.
Attention was also on Tuesday's consumer price data, expected to show an uptick in US inflation in June, as sellers began raising prices to factor in Trump's sweeping tariffs.
Meanwhile, producer and import price reports are due on Wednesday and retail sales figures are due on Thursday.
While traders have almost fully ruled out a July rate cut, the probability for a September move stands at 61 per cent, according to CME FedWatch.
In an interview on Fox Business, Cleveland Fed president Beth Hammack rejected the need to immediately lower interest rates.
Most S&P sectors were in the positive domain but the information technology index was a drag, down 0.8 per cent.
Chip stocks came under pressure, with Micron Technology falling about 5 per cent and Nvidia down 1.2 per cent.
Among other stocks, Tesla rose 1.3 per cent after CEO Elon Musk ruled out a merger between the electric vehicle maker and xAI.
Crypto stocks ticked up after bitcoin topped $US120,000 for the first time.
Coinbase global rose 2.7 per cent, Bitfarms gained 5.1 per cent and Riot platforms was up 5.4 per cent.
Waters Corp dropped 9.4 per cent after the lab equipment maker agreed to merge with rival Becton, Dickinson and Company's Biosciences & Diagnostic Solutions unit in a $US17.5 billion ($A26.7 billion) deal.
Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE while advancing issues outnumbered decliners by a 1.13-to-1 ratio on the Nasdaq.
The S&P 500 posted nine new 52-week highs and four new lows while the Nasdaq Composite recorded 41 new highs and 28 new lows.
Wall Street has fallen marginally as investors ran into US President Donald Trump's latest tariff threats against the European Union and Mexico, starting a week loaded with economic data and major second-quarter earnings.
Trump ramped up trade tensions over the weekend, vowing to slap a 30 per cent tariff on most imports from the European Union and Mexico starting August 1 - a move that leaves the clock ticking for last-minute trade deals.
The EU extended its pause on retaliatory measures until early August, holding out hope for a negotiated truce.
The White House said talks with the EU, Canada and Mexico are still underway.
Trump's latest salvo follows last week's tariff offensive, which targeted the United States' close allies like Canada, Japan and South Korea, and a 50 per cent duty on copper.
Yet, investors barely flinched, having grown accustomed to Trump's tariff threats and his track record of last-minute reversals.
"The stock market's muted reaction to the latest volley of tariff headlines suggests investors may be growing numb to them, or are deciding that the tariff bark will likely be worse than the eventual bite," said Chris Larkin, managing director, trading and investing, E*TRADE from Morgan Stanley.
In early trading on Monday, the Dow Jones Industrial Average fell 27.60 points, or 0.06 per cent, to 44,343.20, the S&P 500 lost 11.72 points, or 0.19 per cent, to 6,248.16 and the Nasdaq Composite lost 36.06 points, or 0.17 per cent, to 20,549.58.
RBC Capital Markets raised its year-end S&P 500 target to 6,250 - its second upgrade this year - citing upbeat investor sentiment and optimism about the economic outlook through 2026.
Focus was also shifting to the commencement of the second-quarter earnings season, with Wall Street's banking giants reporting on Tuesday.
Attention was also on Tuesday's consumer price data, expected to show an uptick in US inflation in June, as sellers began raising prices to factor in Trump's sweeping tariffs.
Meanwhile, producer and import price reports are due on Wednesday and retail sales figures are due on Thursday.
While traders have almost fully ruled out a July rate cut, the probability for a September move stands at 61 per cent, according to CME FedWatch.
In an interview on Fox Business, Cleveland Fed president Beth Hammack rejected the need to immediately lower interest rates.
Most S&P sectors were in the positive domain but the information technology index was a drag, down 0.8 per cent.
Chip stocks came under pressure, with Micron Technology falling about 5 per cent and Nvidia down 1.2 per cent.
Among other stocks, Tesla rose 1.3 per cent after CEO Elon Musk ruled out a merger between the electric vehicle maker and xAI.
Crypto stocks ticked up after bitcoin topped $US120,000 for the first time.
Coinbase global rose 2.7 per cent, Bitfarms gained 5.1 per cent and Riot platforms was up 5.4 per cent.
Waters Corp dropped 9.4 per cent after the lab equipment maker agreed to merge with rival Becton, Dickinson and Company's Biosciences & Diagnostic Solutions unit in a $US17.5 billion ($A26.7 billion) deal.
Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE while advancing issues outnumbered decliners by a 1.13-to-1 ratio on the Nasdaq.
The S&P 500 posted nine new 52-week highs and four new lows while the Nasdaq Composite recorded 41 new highs and 28 new lows.
Wall Street has fallen marginally as investors ran into US President Donald Trump's latest tariff threats against the European Union and Mexico, starting a week loaded with economic data and major second-quarter earnings.
Trump ramped up trade tensions over the weekend, vowing to slap a 30 per cent tariff on most imports from the European Union and Mexico starting August 1 - a move that leaves the clock ticking for last-minute trade deals.
The EU extended its pause on retaliatory measures until early August, holding out hope for a negotiated truce.
The White House said talks with the EU, Canada and Mexico are still underway.
Trump's latest salvo follows last week's tariff offensive, which targeted the United States' close allies like Canada, Japan and South Korea, and a 50 per cent duty on copper.
Yet, investors barely flinched, having grown accustomed to Trump's tariff threats and his track record of last-minute reversals.
"The stock market's muted reaction to the latest volley of tariff headlines suggests investors may be growing numb to them, or are deciding that the tariff bark will likely be worse than the eventual bite," said Chris Larkin, managing director, trading and investing, E*TRADE from Morgan Stanley.
In early trading on Monday, the Dow Jones Industrial Average fell 27.60 points, or 0.06 per cent, to 44,343.20, the S&P 500 lost 11.72 points, or 0.19 per cent, to 6,248.16 and the Nasdaq Composite lost 36.06 points, or 0.17 per cent, to 20,549.58.
RBC Capital Markets raised its year-end S&P 500 target to 6,250 - its second upgrade this year - citing upbeat investor sentiment and optimism about the economic outlook through 2026.
Focus was also shifting to the commencement of the second-quarter earnings season, with Wall Street's banking giants reporting on Tuesday.
Attention was also on Tuesday's consumer price data, expected to show an uptick in US inflation in June, as sellers began raising prices to factor in Trump's sweeping tariffs.
Meanwhile, producer and import price reports are due on Wednesday and retail sales figures are due on Thursday.
While traders have almost fully ruled out a July rate cut, the probability for a September move stands at 61 per cent, according to CME FedWatch.
In an interview on Fox Business, Cleveland Fed president Beth Hammack rejected the need to immediately lower interest rates.
Most S&P sectors were in the positive domain but the information technology index was a drag, down 0.8 per cent.
Chip stocks came under pressure, with Micron Technology falling about 5 per cent and Nvidia down 1.2 per cent.
Among other stocks, Tesla rose 1.3 per cent after CEO Elon Musk ruled out a merger between the electric vehicle maker and xAI.
Crypto stocks ticked up after bitcoin topped $US120,000 for the first time.
Coinbase global rose 2.7 per cent, Bitfarms gained 5.1 per cent and Riot platforms was up 5.4 per cent.
Waters Corp dropped 9.4 per cent after the lab equipment maker agreed to merge with rival Becton, Dickinson and Company's Biosciences & Diagnostic Solutions unit in a $US17.5 billion ($A26.7 billion) deal.
Declining issues outnumbered advancers by a 1.03-to-1 ratio on the NYSE while advancing issues outnumbered decliners by a 1.13-to-1 ratio on the Nasdaq.
The S&P 500 posted nine new 52-week highs and four new lows while the Nasdaq Composite recorded 41 new highs and 28 new lows.
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The 'Trump effect' on the auto industry isn't confined to tariffs. His aversion to electric vehicles and climate-related initiatives and his assault on the Biden's administration's subsidies and incentives for carbon emission reductions and green energy includes the withdrawal of subsidies for EV purchases and tax credits for emissions reductions. That will hit Tesla, which has relied on the sale of the regulatory credits for its profitability – it would be loss-making without them – hardest. While Trump keeps claiming that the US is collecting massive amounts of tariff revenue from other countries' exporters, the GM experience underscores what almost everyone else has always understood. It might, in the near term, help other US EV manufacturers, even GM – the second-largest US domestic manufacturer of EVs – which have had to buy the credits to offset the emissions from their larger internal combustion vehicle production. What it and, thanks to tariff and non-tariff barriers, the near-total absence of competition from imported EVs will do, however, is drive up the cost of domestically produced EVs, reduce their sales volumes and undermine the scale efficiencies that might lead to EV profitability. Loading GM more than doubled its sales of EVs in the June quarter relative to the same quarter last year. In the near term reduced EV sales and losses might help blunt the effect of Trump's tariffs. In the longer term his policies will leave the GM and the US even further behind the global shift towards EVs and the electrification of energy and transport. Supposedly, the tariffs and the unwinding of Biden's green energy initiatives are going to help make America great again... .
