U.S. stock futures slip after Trump's latest tariff threats; bitcoin hits new high
MarketWatch
Jul 14, 2025 06:32:00
By Mike Murphy
U.S. stock futures fell Sunday, a day after President Donald Trump threatened to impose new 30% tariffs against imports from Mexico and the European Union.
Dow Jones Industrial Average futures (YM00) dropped more than 200 points, or 0.5%, late Sunday. S&P 500 futures (ES00) declined 0.5% while Nasdaq-100 futures (NQ00) dipped 0.6%. Front-month West Texas Intermediate crude prices (CL.1) inched higher, as did the price of gold (GC00).
Earlier Sunday, bitcoin (BTCUSD) hit a new record high at $119,487. Last week, bitcoin topped the $111,000 level for the first time, and Katie Stockton, founder and managing partner at Fairlead Strategies, said bitcoin could ride its current momentum to around $134,500 after its latest technical breakout. Bitcoin has rallied about 10% over the past week, and has gained about 27% year to date.
On Saturday, Trump threatened new 30% tariffs on goods from the European Union and Mexico, effective Aug. 1. That came after the Trump administration last week announced a 35% tariff on Canadian goods, and tariffs of 25% on imports from Japan and South Korea, also effective Aug. 1.
On Sunday, the E.U. said it will delay retaliatory tariffs against U.S. goods, set to take effect Monday, in order to give more time to reach a trade deal by Aug. 1.
"This is now the time for negotiations," European Commission President Ursula von der Leyen said Sunday in Brussels, according to the Associated Press, after warning Saturday that "imposing 30% tariffs on E.U. exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic."
Financial markets have largely taken Trump's tariff threats in stride in recent months, as they've been repeatedly postponed, giving rise to the so-called TACO - "Trump always chickens out" - trade.
But stocks ended lower Friday amid the tariff worries. The Dow Jones Industrial Average DJIA lost 1% for the week, snapping a three-week winning streak. The S&P 500 SPX broke a two-week winning streak, declining 0.3%, while the Nasdaq Composite COMP slipped about 0.1% on the week.
Meanwhile, the 30-year Treasury yield made its biggest weekly rise since May, on growing fears of inflation driven by Trump's tariff wars. Tuesday's consumer-price index report for June should shed more light on the state of inflation, and may test the will of investors, who have largely hung tight despite Trump's tariff threats.
Read more: Stocks and U.S. government bonds sell off in tandem Friday as trade jitters cool rally
Investors will also be looking at second-quarter earnings from companies including JPMorgan Chase & Co. (JPM) and Netflix Inc. (NFLX), in what should be the first full-quarter test of the impact of Trump's tariffs on corporate earnings. Wall Street analysts expect companies to report the lowest level of quarterly growth per share since the end of 2023, according to FactSet.
-Mike Murphy
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