FX.co ★ US Stocks Cautious as Trump Imposes Tariffs on EU, Mexico

On Monday, the major U.S. stock market averages experienced fluctuations, hovering around the neutral mark amidst escalating trade tensions. This followed President Trump's weekend declaration of a 30% tariff on imports from the European Union and Mexico, slated to be implemented on August 1. Both trading partners have committed to maintaining negotiations with the U.S. in hopes of achieving a resolution that may mitigate the tariff increase. Investors are also preparing for a crucial Consumer Price Index (CPI) report anticipated for tomorrow, which is likely to indicate a rise in inflation as companies begin to transfer the impact of higher import costs to consumers. The worst-performing sectors included health and energy, whereas the communication services sector showed strong performance. On the corporate scene, the performance of large-cap stocks was mixed: while Nvidia, Microsoft, Apple, and Broadcom saw declines of 0.7%, 0.3%, 0.7%, and 0.3% respectively, Meta and Alphabet noted gains of 0.4% and 0.8%. Amazon remained relatively stable. Furthermore, Tesla's shares increased by approximately 2.1% following Elon Musk's comments regarding a prospective shareholder vote on Tesla's investment in xAI.