ADDX GO Market Morning Wrap - 8th July
Stock Market
On Monday, U.S. stocks opened lower and closed down, marking the worst single-day performance since mid-June for all three major indices.
At the close, the Dow Jones Industrial Average fell 0.94% to 44,406.36 points, the S&P 500 dropped 0.79% to 6,229.98 points, and the Nasdaq Composite declined 0.92% to 20,412.52 points.
Trump posted letters on social media to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung, announcing that the U.S. will impose a 25% tariff on all Japanese and South Korean products imported to the U.S. starting August 1, 2025.
This news led to declines in U.S.-listed Japanese and South Korean company stocks: Toyota fell 3.99%, Honda dropped 3.88% among Japanese stocks, while LG Display plummeted 8.03% and SK Telecom declined 7.72% among South Korean stocks.
Tesla fell 6.79%, erasing over $68 billion from its market cap, after CEO Elon Musk announced the formation of the “America Party” on social media over the weekend, unsettling investors.
Late in the session, Trump added that starting August 1, the U.S. will impose a 25% tariff on all products from Kazakhstan and Malaysia, 30% on those from South Africa, and 40% on those from Laos and Myanmar.
The White House stated that 12 additional countries will receive trade-related letters, to be posted on social media, and Trump will sign an executive order extending the original July tariff negotiation deadline to August 1.
City Index analyst Fawad Razaqzada commented: “Investors should beware of headline-driven risks. A last-minute deal is highly possible, but so is an escalation of trade tensions.”
A report from BMO Capital Markets noted: “With the trade war back in focus, U.S. Treasury yields rose sharply on Monday, a trend consistent with the inflationary impact of potential tariff hikes.”
Global Hotspots
Trump Sends Tariff Threat Letters to 14 Countries
On July 7 local time, U.S. President Trump sent letters to Japan, South Korea, South Africa, and 11 other countries threatening tariffs, followed by signing an executive order extending the “reciprocal tariff” suspension to August 1.
EU Still Pursues Principle Trade Deal with U.S.
EU Commission spokesperson Olof Gill said on July 7 that the EU is still working toward a principle bilateral trade agreement with the U.S. by July 9, with ongoing discussions. Gill emphasized the EU’s commitment to a deal benefiting European businesses, consumers, and the global economy.
U.S. Energy Department: Power Capacity Shortfall Could Double Blackouts by 2030
On July 7 local time, the U.S. Energy Department warned that without increased power capacity during peak demand, blackouts could double within five years. A report on grid reliability and security noted that if the U.S. continues retiring reliable power sources, blackout incidents could rise 100% by 2030, attributing this to Biden’s green policies delaying new plant approvals and widening the supply-demand gap, especially with AI-driven data center demand.
Company News
Apple Appeals EU’s €500M Fine
Apple has appealed the European Union’s €500 million ($586 million) fine for violating the Digital Markets Act (DMA).
F1 Movie Breaks Apple’s Theatrical Box Office Record but Far from Profit
Latest data shows Apple’s theatrical release *F1* grossed $293 million globally post-weekend, with production costs of $2-3 billion and $100 million in marketing. Revenue must be shared with Warner Bros. Discovery and theaters, leaving a significant profit gap.
Robinhood’s Equity Tokens Face EU Regulatory Scrutiny
Lithuania’s central bank, a key regulator for Robinhood in the EU, stated on Monday it has contacted the brokerage for details on OpenAI and SpaceX stock tokens’ structure and consumer communications to assess their legality and compliance.
Forex & Commodities
International oil prices rose.
At the close, August delivery light crude futures on the New York Mercantile Exchange gained 93 cents to $67.93 per barrel, up 1.39%, while September delivery Brent crude futures on the London ICE Futures Exchange rose $1.28 to $69.58 per barrel, up 1.87%.
COMEX gold futures for the current month continuous contract fell $0.10 to $3,342.8 per ounce.
The U.S. dollar index rose 0.58% to 97.55 in late New York trading, with most non-U.S. currencies declining.
Key Events
Fed Research: 9% Chance Base Rate Drops to Zero Mid-Term
On Monday (July 7) local time, the New York Fed released a research report stating that the Fed cannot rule out its base rate returning to near 0% in the medium term, estimating a 9% probability long-term.
First Since December Last Year! Houthi Rebels Attack and Sink Ship Bound for Israel
On Monday afternoon local time, Houthi military spokesperson Yahya Saree announced that the group attacked the vessel *Ocean Magic*, bound for Israel in violation of their navigation ban, using two unmanned boats, five missiles, and three drones, successfully hitting it, causing flooding, and risking its sinking.
Cryptocurrency
Major digital assets showed mixed performance on Monday.
Bitcoin fell 0.3% to $108,155, with 24-hour trading volume surging 28.5% to $43.52 billion.
Ethereum (ETH-USD), the second-largest by market cap, rose 0.4% to $2,546.
XRP (XRP-USD) gained 1.9%, BNB (BNB-USD) lost 0.2%, and Solana (SOL-USD) fell 1.1%. Dogecoin (DOGE-USD) declined 0.6%, and Cardano (ADA-USD) was down 0.1%.
The total market value of the cryptocurrency sector rose slightly to $3.34 trillion in the past 24 hours, with trading volume up 39.4% to $103.23 billion.
Key Events
CoreWeave Agrees to Acquire Core Scientific in All-Stock Deal
U.S. AI cloud service provider CoreWeave announced on its website that it has signed a definitive agreement to acquire data center infrastructure firm Core Scientific in an all-stock transaction valued at approximately $9 billion, with each Core Scientific share exchangeable for 0.1235 shares of newly issued CoreWeave Class A common stock.
Market Events and Most Anticipated Earnings Releases
