US markets opened red on Monday as the markets digest fresh tariff concerns from US President Donald Trump.
The S&P 500 opened 0.18% down at 6,248.12. The tech-heavy Nasdaq index slipped 0.17% to 20,537.03 while the Dow Jones Industrial Average was almost unchanged, as it traded 0.05% down at 44,351.11.
Tariff announcement sets cautious tone ahead of inflation data
Over the weekend, President Donald Trump announced that the United States will impose 30% tariffs on goods from the European Union and Mexico starting August 1.
The move has triggered ongoing discussions with leaders from both regions, who expressed their intention to continue negotiations this month in hopes of reaching a reduced tariff rate.
The tariff development comes just ahead of fresh inflation data due later this week, which will offer investors more clarity on how current tariff policies are impacting price levels and consumer demand.
Concerns are growing that higher import costs could stoke inflationary pressures, further complicating the Federal Reserve’s path forward.
Adding to market unease is the continued strain between the Trump administration and the Federal Reserve.
On Sunday, National Economic Council Director Kevin Hassett told ABC News that President Trump could remove Fed Chair Jerome Powell “if there’s cause.”
The comment follows weeks of criticism from Trump over Powell’s resistance to lowering interest rates and scrutiny over the costs of renovations at the Federal Reserve’s main building in Washington, D.C.
The central bank has pushed back against the allegations, defending the renovation as a necessary infrastructure investment.
Earnings season kicks off, and major stock movers
Investors are also gearing up for a wave of corporate earnings this week, with major banks like JPMorgan Chase set to report results beginning Tuesday.
Fastenal reported earnings on Monday and gained 5% after beating Wall Street expectations in its second-quarter results.
The industrial supply company reported earnings of 29 cents per share, edging past analyst forecasts of 28 cents, according to FactSet.
Electric vehicle maker Rivian Automotive fell 2.34% after Guggenheim downgraded the stock to neutral from buy.
Analyst Ronald Jewsikow pointed to softer-than-expected long-term sales expectations for Rivian’s upcoming R2 and R3 models as key concerns.
Kenvue, the maker of Neutrogena, gained briefly, although the stock has retreated from highs to trade at 1.24% up, following the resignation of CEO Thibaut Mongon.
The company announced a strategic review and said it is evaluating alternatives to streamline its business portfolio.
SolarEdge Technologies gained 5% after Barclays upgraded the solar firm to equal weight from underweight, citing a stronger growth outlook for 2024 and 2025 despite an expected market contraction in 2026.
Shares of nCino rose 3% after Baird upgraded the financial technology firm to outperform, highlighting encouraging management commentary and recent strategic initiatives.
Bitcoin-related equities also rallied, tracking gains in the cryptocurrency itself, which hit a new all-time high above $120,000.
Stocks such as Riot Platforms, CleanSpark, and MARA Holdings rose between 7% and 11%.
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