ManilaAs the Trump administration increases pressure on trading partners to swiftly reach agreements before a deadline on Wednesday, Wall Street is predicting a lower opening Monday.
The United States will alert trading partners to the possibility of increased tariffs beginning on August 1.
Prior to the opening bell, futures for the Dow Jones Industrial Average dropped less than 0.1%, while those for the S&P 500 declined 0.3%. Futures on the Nasdaq fell 0.5%.
Over the weekend, Trump and his senior trade advisers stated that if nations were negotiating in good faith and making concessions, the president may extend the tariff deadline.
The Nomura Group stated in a commentary that it anticipates market volatility until the 90-day delay on President Trump’s reciprocal tariffs for non-China trading partners ends on July 9.
According to Nomura, the near-term picture will probably depend on a number of important variables, including the tariff rate, the date on which the duties go into effect, and the degree to which Trump’s letters include trading partners.
All eyes are on Washington as the July 9 tariff deadline draws near, looking for any indications of escalation or retreat. In a remark, Stephen Innes, managing partner at SPI Asset Management, stated that while the road ahead is unclear, it is paved with danger.
As the spat between Trump and CEO Elon Musk resurfaced over the weekend, Tesla’s stock fell 6.5%. In protest of the Republicans’ budget package that was approved late last week, Musk, a former Trump buddy and major fundraiser, declared he was starting a third political party.
In a social media post, Trump attacked Musk, implying that he was disappointed by the measure because it repealed an electric vehicle mandate, something Trump claims Musk was aware would happen.
Investors worry that if Musk’s conflict with Trump worsens, his businesses, which rely heavily on governmental subsidies, may suffer even more.
After the insurer reduced its profit guidance owing to rapidly rising costs, Molina Healthcare fell 6%. Additionally, UnitedHealth Group recently disclosed a cost increase that compelled them to lower its projection, which caused its shares to plummet in April.
Following OPEC+’s agreement on Saturday to increase production by 548,000 barrels per day in August, oil prices varied.
At $67 a barrel, U.S. benchmark crude was virtually unchanged early Monday. The global benchmark, Brent crude, increased 40 cents to $68.70 a barrel.
Europe’s FTSE 100 was up 0.1% at midday, while Germany’s DAX was up 0.8%. The CAC 40 was up 0.2% in Paris.
In Asia, Hong Kong’s Hang Seng index fell 0.1% to 23,887.83, while Japan’s Nikkei 225 fell 0.6% to 39,587.68.
The Shanghai Composite Index increased by 0.1% to 3,473.13, while the South Korean KOSPI index increased by 0.2% to 3,059.47. The S&P ASX 200 in Australia dropped 0.2% to 8,589.30.
The U.S. dollar increased from 144.44 to 145.42 Japanese yen during Monday’s currency market. The euro fell slightly from $1.1779 to $1.1727.
