President Trump calls tariffs “drugs” when the stock market plummets
President Donald Trump spent the weekend at the Florida golf tournament as the stock market continued to plummet.
US stocks have been mixed by midday and the Blue Chip Dow is currently in positive territory, but after nine consecutive profits on Friday, the wide S&P 500 is waning to the red for the longest victory in more than 20 years.
Despite tariff concerns, mild support has led to middle age after a report showing the service sector has grown stronger last month.
“This research report supports our view that tariffs will not cause the economy to recession, but will create sufficiently updated inflationary pressures to hold the Fed on hold until it acquires a new chair next May.”
The Federal Reserve will begin its two-day policy meeting on Tuesday.
With President Donald Trump introducing new tariffs over the weekend, stocks from surprise news that new tariffs targeted at the film industry and that legendary Berkshire Hathaway CEO Warren Buffett will step down by the end of the year still feel some pressure. Berkshire Hathaway’s shares were low.
At 12:47pm ET, the Dow added 0.25% (105.05 points) to 41,422.48. The S&P 500 reduced its 0.2% (11.44 points) to 5,675.23. And the high-tech NASDAQ reduced its 0.31% (56.38 points) to 17,921.34. The benchmark 10-year yield was up to 4.351%.
On Sunday, Trump said he would collect 100% tariffs on films produced outside the US, but did not provide details on how it would be implemented. Netflix stocks slid 1.21% on the news.
Comments come after signs that trade deals are imminent and that China may be open to talks. Trump suggested on Sunday that trade deals with several countries could arrive early this week, according to Bloomberg. He also said he was willing to lower China’s tariffs at one point but did not provide further details.
Bloomberg also reported that India has proposed zero tariffs on steel, auto parts and medicines, up to a certain amount of imports.
Last week, China’s Offals said they are evaluating trade talks with the US
The hope of easing trade tensions helped boost all three key indicators last week.
Feed on tap
The Federal Reserve Policy Committee will meet this week to determine interest rates. CME Group’s FedWatch tool shows a 96% chance that the Fed does not change its rate.
Investors are keen to look for commentary from central bank or Fed Chairman Jerome Powell on the economic outlook amid growing uncertainty resulting from the trade war.
Oil prices under pressure
Oil prices are under pressure after OPEC+ agreed to raise production for two months. The oil producer agreed to an additional 411,000 barrels per day in June. The decision comes a month after OPEC+ surprised the market by agreeing to pump more oil for the same amount in May.
Corporate News
- Warren Buffet, chief executive of Berkshire Hathaway, said he would resign by the end of the year. His successor is Greg Abel, the current vice-president of Berkshire’s non-insurance business. Buffett remains the chairman of the company. The company’s B shares fell 4.41%.
- Pet food maker Freshpet lowered its annual sales forecast, but its stock rose 3.84%.
- Skechers has agreed to buy private equity company 3G Capital for $63 per share. Skechers’ stake was 24.71%.
- Tyson’s sales in the second quarter of fiscal year missed analysts’ forecasts, but adjusted revenues rose. The meat supplier shares fell 7.85%.
Cryptocurrency
The strategy, previously known as MicroStrategy, purchased 1,895 Bitcoin worth $18 million last week, according to regulatory filings Monday.
Bitcoin fell 0.24% to $94,349.96.
This story has been updated with new information.
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.