The S&P 500 Index closed down 0.79% on Monday, while the Dow Jones dropped 0.94%, and the Nasdaq 100 also fell 0.79%. Trade tensions escalated as President Trump announced plans to impose tariffs on several countries, including Japan and South Korea, with rates ranging from 25% to 40%, effective August 1. This news contributed to a rise in the 10-year T-note yield, which climbed by 4 basis points to 4.39%.
Stocks are further pressured as the upcoming earnings season predicts a modest 2.8% increase in Q2 earnings for S&P 500 companies, marking the smallest growth in two years. Only six out of eleven sectors are expected to show positive earnings growth. Markets are awaiting further tariff developments ahead of a Wednesday deadline, along with the release of the June FOMC meeting minutes.
Several notable companies saw stock declines: Tesla dropped more than 6% after President Trump criticized CEO Elon Musk’s political aspirations. ARM Holdings fell 5%, while other chipmakers also experienced losses. In contrast, WNS Holdings surged 15% following an acquisition deal valued at $3.3 billion.
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