U.S. equities slipped on Monday as investor sentiment turned cautious amid renewed concerns over escalating trade tariffs proposed by President Donald Trump. Following last week’s record-setting performance, all three major indexes opened lower: the Dow Jones Industrial Average fell 95 points (0.2%), the S&P 500 dropped 22 points (0.4%), and the Nasdaq Composite declined 95 points (0.5%) by 9:32 a.m. ET.

Market participants are increasingly wary as the deadline nears for the expiration of a temporary pause on Trump’s proposed retaliatory tariffs. While preliminary trade pacts have been reached with the U.K., Vietnam, and China, broader agreements remain elusive. Treasury Secretary Scott Bessent indicated that talks have intensified in recent days, saying he received a wave of fresh proposals overnight. “It’s going to be a busy couple of days,” he told CNBC, hinting at a flurry of upcoming trade announcements within 48 hours.

President Trump confirmed that notices outlining new tariff rates would be sent out Monday. However, the timeline for implementation remains unclear, with some reports suggesting the new measures may not take effect until August 1. Trump also suggested the tariffs could be as steep as 60% to 70%, and indicated that nations within the BRICS alliance—Brazil, Russia, India, China, and South Africa—may face additional duties due to what he described as “anti-American conduct.”

Investors are also looking ahead to Wednesday’s release of the Federal Reserve’s meeting minutes for more clarity on future interest rate policy. The Fed left its benchmark rate unchanged last month at 4.25%-4.5%, citing the need for further data before making additional moves—particularly as trade dynamics weigh on economic forecasts.

Tesla Takes a Hit as Musk Steps into Politics

Tesla (NASDAQ:TSLA) shares tumbled sharply after CEO Elon Musk revealed plans to launch a new political initiative called the “America Party.” Analysts at Wedbush cautioned that Musk’s foray into politics comes at a sensitive time for Tesla, which is grappling with weakening sales and a major strategic shift toward autonomous vehicles. “This is the last thing Tesla shareholders want to see,” Wedbush wrote in a note, highlighting concerns over Musk’s focus and ongoing clashes with President Trump, particularly around the controversial “Big Beautiful Bill.”

Other Market Movers

Kalvista Pharmaceuticals (NASDAQ:KALV) surged after the FDA approved its new oral treatment for a hereditary swelling disorder, marking a milestone in rare disease therapeutics.

Geo Group (NYSE:GEO) and CoreCivic (NYSE:CXW) rose following the passage of a federal spending bill that boosts funding for immigrant detention programs.

Stellantis (NYSE:STLA) saw its stock drop after the National Highway Traffic Safety Administration launched a probe into over 1.2 million Ram trucks over potential transmission issues.

Oil Prices Rebound

In commodities, crude oil prices reversed earlier losses after OPEC+ announced a larger-than-expected production increase for August. Brent crude rose 1% to $68.97 per barrel, while U.S. West Texas Intermediate (WTI) gained 1.3%, climbing to $67.38.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.