Tonight’s Highlights | Trump Unleashes New Tariffs, US & Europe Markets Slide
On Monday, U.S. stock futures and European indices fell broadly as President Trump ramped up pressure on two major trade partners over the weekend.
As of this writing, U.S. futures have slightly narrowed, with investors betting tariffs might be softened through negotiations. Optimism also surrounds the start of the U.S. Q2 earnings season this week.
Trump announced Saturday that the U.S. will impose a 30% tariff on goods from the EU and Mexico starting August 1, marking a further escalation after prolonged talks.
“The biggest question for markets in the coming weeks is whether corporate earnings are strong enough to overshadow the ongoing tariff saga,” said Glenn Smith, Chief Investment Officer at GDS Wealth Management. “So far, the market’s reaction to tariff news has been restrained, with more focus on earnings and economic resilience.”
Investors should also watch a potential wildcard: tensions between the Trump administration and the Federal Reserve.
White House National Economic Council Director Kevin Hassett told media Sunday that Trump could fire Fed Chair Powell if justified. Hassett pointed to “many questions” over the Fed’s Washington headquarters renovation cost overruns, suggesting Powell’s testimony on this could be a pretext for dismissal before Trump’s term ends.
Bitcoin keeps climbing, breaking past $120,000 and hitting $123,000 intraday.
Company News
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Google Snags AI Coding Firm Windsurf from OpenAI for $2.4B
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Following Guangzhou and Shenzhen licenses for GAC Aion Hyper SSR Robotaxi, multiple 7th-gen models are in production, with public road tests underway since the 2023 “Kunlun” plan.