(Sharecast News) - US stocks finished firmly in the red on Monday as traders returned to their desks after a long weekend in a risk-off mood, spurred by a re-escalation of Donald Trump's tariff war against America's trading partners.
"Once again, Trump is playing hardball when it comes to trade policy, and markets have been jolted awake to the risks this pose to global growth," said Kathleen Brooks, research director at XTB.
The Dow and Nasdaq both declined 0.9%, while the S&P 500 slipped 0.8%. Both the S&P 500 and Nasdaq were retreating from record highs reached after a shortened trading day on Thursday ahead of the Fourth of July celebrations.
While Trump pushed back his deadline for his blanket 'reciprocal' tariffs from 9 July to 1 August - to be imposed on countries that do not have specific trade deals with the US - the president did announce 25% tariffs on goods imported from Japan and South Korea, up from 10% currently. He also warned that other South East Asian countries like Laos and Malaysia could see higher duties.
Trump also threatened to punish countries aligning themselves with policies of the BRICS intergovernmental organisation - which includes Brazil, Russia, India, China, South Africa and others - with an additional 10% tariff. The comments came as the BRICS group meets in Rio de Janeiro for a summit.
"After recently hitting record highs, stock markets in the US and elsewhere may have been underestimating the risks from the reciprocal tariff announcements," Brooks said.
"Thus, as we wait for more tariff announcements, we could see risk sentiment start to fade from the markets For now, the dollar is benefitting as the yen and the won sag under the weight of tariffs, and bond yields are rising around the world on the back of the expected inflationary effect from tariffs."
Market movers
Shares in electric vehicle maker Tesla fell sharply after chief executive Elon Musk reopened his rift with former ally Trump by announcing that he is launching a new political party.
The multi-billionaire, who has fiercely opposed Trump's recently signed massive tax and spending bill, said the "America Party" would target a handful of Senate seats and House of Representatives districts in an effort to "serve as the deciding vote on contentious laws". Trump said Musk had "run off the rails", calling his plans "ridiculous".
Precious metal streaming company Royal Gold dropped following the news that it is to purchase gold-focused royalty group Sandstorm Gold in an all-stock deal worth $3.5bn, along with a smaller $196m cash purchase of Canadian miner Horizon Copper.
Dow Chemical dropped after saying it will shut down three upstream chemical plants in Europe and cut approximately 800 jobs, as part of a broader effort to streamline operations in response to persistent cost pressures and weak regional demand.
Meanwhile, WNS gained after French IT services firm Capgemini agreed to buy the technology outsourcing company for $3.3bn in cash. The offer price of $76.50 per WNS is a 17% premium to the previous closing price.
Dow Jones - Risers
Boeing Co. (BA) $218.63 1.26%
Walmart Inc. (WMT) $99.35 1.01%
Cisco Systems Inc. (CSCO) $68.93 0.88%
Walgreens Boots Alliance, Inc. (WBA) $11.55 0.65%
Microsoft Corp. (MSFT) $497.72 0.53%
Nike Inc. (NKE) $76.53 0.18%
International Business Machines Corporation (CDI) (IBM) $292.47 0.17%
Dow Jones - Fallers
Dow Chemical Co. (DOW) $27.50 -3.44%
Travelers Company Inc. (TRV) $258.99 -1.95%
Goldman Sachs Group Inc. (GS) $710.93 -1.76%
Verizon Communications Inc. (VZ) $42.80 -1.72%
American Express Co. (AXP) $322.77 -1.65%
Caterpillar Inc. (CAT) $391.51 -1.60%
Unitedhealth Group Inc. (UNH) $303.71 -1.57%
JP Morgan Chase & Co. (JPM) $291.97 -1.36%
Home Depot Inc. (HD) $367.63 -1.09%
Amgen Inc. (AMGN) $292.95 -1.07%
S&P 500 - Risers
Advance Auto Parts (AAP) $54.26 5.04%
TripAdvisor Inc. (TRIP) $17.17 4.82%
Wynn Resorts Ltd. (WYNN) $108.67 4.06%
O'Reilly Automotive Inc. (ORLY) $92.67 3.74%
Fortinet Inc. (FTNT) $106.65 3.43%
Tractor Supply Company (TSCO) $56.76 3.27%
Expedia Group Inc. (EXPE) $177.80 3.19%
CME Group Inc. (CME) $282.55 2.81%
Tapestry Inc. (TPR) $92.47 2.52%
Kroger Co. (KR) $71.45 2.32%
S&P 500 - Fallers
Nektar Therapeutics (NKTR) $23.47 -10.59%
Brighthouse Financial, Inc. (BHF) $50.70 -6.87%
Flowserve Corp. (FLS) $52.19 -5.68%
Harley-Davidson Inc. (HOG) $24.36 -4.66%
Celanese Corp. (CE) $58.10 -4.57%
Baxter International Inc. (BAX) $29.70 -4.26%
CenturyLink Inc. (LUMN) $4.41 -4.13%
Illumina Inc. (ILMN) $97.15 -4.07%
Dxc Technology Company (DXC) $15.60 -4.00%
Robert Half Inc. (RHI) $41.17 -3.94%
Nasdaq 100 - Risers
Trip.com Group Limited (TCOM) $61.46 4.97%
Wynn Resorts Ltd. (WYNN) $108.67 4.06%
Baidu Inc. (BIDU) $89.79 4.01%
O'Reilly Automotive Inc. (ORLY) $92.67 3.74%
Expedia Group Inc. (EXPE) $177.80 3.19%
Verisk Analytics Inc. (VRSK) $308.17 2.29%
Booking Holdings Inc. (BKNG) $5,815.92 2.08%
Dollar Tree Inc (DLTR) $104.23 1.63%
Vodafone Group Plc ADS (VOD) $10.92 1.49%
Costco Wholesale Corp. (COST) $992.18 1.45%
Nasdaq 100 - Fallers
Tesla Inc (TSLA) $293.94 -7.02%
Qvc Group Inc Series A (QVCGA) $2.83 -5.35%
Illumina Inc. (ILMN) $97.15 -4.07%
DENTSPLY Sirona Inc. (XRAY) $15.94 -3.69%
Kraft Heinz Co. (KHC) $26.08 -3.55%
Microchip Technology Inc. (MCHP) $71.48 -3.46%
QUALCOMM Inc. (QCOM) $158.09 -3.25%
Skyworks Solutions Inc. (SWKS) $76.19 -2.86%
Biogen Inc (BIIB) $130.13 -2.68%
Electronic Arts Inc. (EA) $153.53 -2.63%
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