Major indices closed lower as markets react to increase tariff fear
Major indices move lower as investors react to the news that Pres. Trump will look to raise tariffs on August 1.
A series of letters went out to Japan and South Korea, Malaysia, Kazakhstan, South Africa, Laos, Myanmar that tariffs would increase effective August 1 if trade deals are not advanced by then.
For Japan and South Korea, imported goods from each country would be at 25% tariff. Other tariff rates vary with Kazakhstan at 25%, Malaysia at 25% South Africa at 30%, Myanmar at 40% and Laos at 40%.
Shares were already lower on the day but saw additional pressure after the announcements.
The final numbers are showing:
- Dow Industrial Average fell -422.17 or -0.9% at 44406.36.
- S&P index fell -49.37 points or -0.79% at 6229.98.
- NASDAQ index fell -188.59 points or -0.92% at 20412.52..
The small-cap Russell 2000 fare the worst with a -34.81 point decline or -1.55% at 2214.22..
Shares up Tesla fell by -6.79% after Elon Musk said that he was starting a third political party. Pres. Trump said that Musk is going off the rails, and interestingly, he announced tariffs of 30% against his home country of South Africa.
Some of the big losers today included:
Tesla (TSLA): -6.80%
Arm (ARM): -5.29%
Stellantis NV (STLA): -4.95%
First Solar (FSLR): -4.31%
GameStop Corp (GME): -4.15%
ARK Genomic Revolution (ARKG): -4.12%
Super Micro Computer (SMCI): -2.99%
Papa John's (PZZA): -2.96%
Chipotle Mexican Grill (CMG): -2.81%
FedEx (FDX): -2.53%
Qualcomm (QCOM): -2.50%
General Mills (GIS): -2.47%
Rivian Automotive (RIVN): -2.45%
Taiwan Semiconductor (TSM): -2.42%
Some companies that advanced in the down day included:
Roblox (RBLX): +4.03%
SoFi Technologies (SOFI): +3.69%
Palantir (PLTR): +3.54%
DoorDash (DASH): +3.39%
Uber Technologies (UBER): +3.25%
Dollar Tree (DLTR): +2.28%
Snowflake (SNOW): +1.92%
Lockheed Martin (LMT): +1.45%
Charles Schwab (SCHW): +1.26%
Boeing (BA): +1.20%
Walmart (WMT): +1.01%
Fortinet (FTNT): +0.94%
This article was written by Greg Michalowski at www.forexlive.com.