Stocks slump on Monday
The major averages all ended Monday’s trading session lower.
The Dow Jones Industrial Average lost 422.17 points, or 0.94%, and finished at 44,406.36. The S&P 500 shed 0.79%, closing at 6,229.98, while the Nasdaq Composite gave up 0.92% and ended at 20,412.52.
— Lisa Kailai Han
A potential stagflation scenario is still a risk to the “Goldilocks narrative” that has helped usher in new highs in the stock market, according to JPMorgan.
Stagflation refers to a period where economic growth is tepid and inflation is hotter than normal. Some economists have warned that the increased tariffs from the Trump administration could lead to such an outcome.
JPMorgan strategist Mislav Matejka said in a note to clients Monday that negative impacts from tariffs should start to show up in the coming months, with economic growth potentially being cut by half.
“If JPM view of growth slowing, but at the same time inflation picking up, gains traction through the summer, that is likely to arrest the market rebound,” Matejka wrote.
— Jesse Pound
Retail investors were the most bullish toward the six-month outlook for stocks late last week since December, 2024, according to the latest weekly poll from the American Association of Individual Investors. Optimism jumped to 45.0% from 35.1% the week before and was above the long-term historical average of 37.5% for the first time since May.
Bearish opinion slumped to 33.1% of investors, down from 40.3% one week earlier, and only a little above the long-run historical average of 31.0%. Only 21.9% of investors said they were neutral about the short-term outlook for stocks, far below the historic average of 31.5%.
Asked their opinion of the “One Big Beautiful Bill” passed by Congress and signed into law by President Trump, nearly two thirds of individual investors, or 64.6%, said it raises the national deficit too much. Less than a fifth, or 18.2%, said they generally liked it, while 7.2% said it cut government spending too much.
— Scott Schnipper
The IBM logo at the headquarters of IBM Germany in the Highlight Towers in Parkstadt Schwabing in Munich (Bavaria). Images)
Matthias Balk | Picture Alliance | Getty Images
IBM has gained more than 30% so far this year, and Melius Research analyst Ben Reitzes believes it can still push higher. On Monday, Reitzes boosted his price target on the stock to $350 from $287, suggesting nearly 20% upside from Thursday’s close.
The tech company’s move toward infrastructure software is paying off and should fuel multiple expansion, he said in a note to clients.
“This type of software is representative of the stuff that is considered sticky ‘pipes’ for customers,” Reitzes wrote. “IBM’s software is harder to get rid of and largely priced by usage or by instances vs. traditional seat-based SaaS that is undeniably threatened by the rise of AI.”
He estimates that IBM’s free-cash flow will top the company’s $13.5 billion goal, growing by at least 6% this year and 8% in both 2026 and 2027.
— Michelle Fox
U.S. President Donald Trump posted letters to five more countries outlining the tariffs they will face. Here are the levies:
- Kazakhstan: 25% tariff rate
- Malaysia: 25% tariff rate
- South Africa: 30% tariff rate
- Myanmar: 40% tariff rate
- Laos: 40% tariff rate
— Adrian van Hauwermeiren, Sarah Min
Onlookers gather at South Pointe Park to watch Royal Caribbean’s “Icon of the Seas”, the world’s largest cruise ship, as it sails from Port Miami on its maiden cruise, in Miami Beach, Florida on January 27, 2024.
Paul Hennessy | Anadolu | Getty Images
During Monday’s trading session, 23 stocks in the S&P 500 traded at new 52-week highs.
Stocks that hit this milestone included:
- Royal Caribbean trading at all-time high levels back to its IPO in April 1993
- BlackRock trading at all-time high levels back to its IPO in 1999
- Citigroup trading at levels not seen since December 2008
- Uber trading at all-time highs back to its IPO in May 2019
- Quanta Services trading at all-time highs back to its IPO in February 1998
- Wynn trading at levels not seen since April 2024
- Nasdaq Inc trading at all-time high levels back to April 2003
- Trane Technologies trading at all-time high levels back through Ingersoll Rand’s history, before its recent merger with Gardner Denver
- Fastenal trading at all-time high levels back to its IPO in August 1987
Just two stocks traded at new 52-week lows: Centene and Elevance Health.
— Lisa Kailai Han
The recent rally for Wells Fargo seems set to cool from here, according to Raymond James.
Analyst David Long downgraded the bank stock to market perform from strong buy, saying in a note to clients that the stock has limited upside now that investors have priced in the benefits of bank’s asset cap being removed.
“While we remain bullish on Wells Fargo’s growth prospects and continued profitability improvement, we believe upside to its EPS estimates is now appropriately reflected in its premium valuation, limiting near-term upside to WFC shares,” the note said.
The Federal Reserve removed the asset cap on Wells Fargo on June 3. Shares of Wells Fargo are up more than 10% since then, and about 15% since June 18, when Long previously raised his estimates for the bank.
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Shares of Wells Fargo have climbed in recent weeks.
The stock dipped less than 1% in early trading Monday.
— Jesse Pound
The U.S. listed shares of South Korea companies SK Telecom and LG Display slid in midday trading following President Donald Trump’s announcement of 25% on the country.
Shares of telecommunications company SK Telecom — which is part of SK Group, one of South Korea’s largest conglomerates — fell more than 7%.
Shares of LG Display, the maker of organic light-emitting diode display (OLED) products for notebooks and other electronics under LG Electronics, were down by more than 6%.
— Sarah Min
President Donald Trump announced Monday that the U.S. would hit products from Japan and South Korea with 25% tariffs, sending shares of Toyota and Honda down.
U.S.-traded shares of Toyota Motor dropped more than 4%, while Honda Motor shares slid nearly 4%.
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U.S.-traded shares of Toyota Motor and Honda Motor in the past day
These levies will take effect starting Aug. 1, Trump said, in two Truth Social posts that detailed screenshots of letters addressed to Japanese Prime Minister Shigeru Ishiba and South Korean President Lee Jae-myung.
—Darla Mercado
Japan and South Korea ETFs fell in midday trading after President Donald Trump announced 25% levies on goods imported from the two countries that are set to start Aug. 1.
The iShares MSCI Japan ETF slid 2%. The ETF is up more than 8% year to date.
The iShares MSCI South Korea ETF fell more than 3%. It’s up more than 37% in 2025.
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iShares MSCI South Korea ETF, over one day
A view shows Tesla superchargers at the supercharging station in Escondido, California, U.S., July 3, 2025.
Mike Blake | Reuters
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HACK ALL chart
The White House has issued letters to Korea and Japan announcing 25% tariffs on those countries starting Aug. 1, according to posts from President Donald Trump’s Truth Social account.
The letters say that any retaliatory tariffs from Korea and Japan will then be added to that 25% number.
The stock market moved lower after the letters were posted. The Dow was last down about 1%.
— Jesse Pound
Seaport Research downgraded shares of Netflix to neutral from a buy rating Monday on valuation concerns and the time needed to execute against expectations.
The downgrade came ahead of its July 17 earnings release. The streamer has seen its stock skyrocketing more than 45% this year.
“We believe that plenty of the long-term opportunity set is factored into the shares at this price, and the company needs time to execute against the expectations in advertising, aggregating, launching experiences, and expanding share again,” Seaport said in a note to clients.
— Yun Li
Shares of Uber popped nearly 4% on Monday to a fresh all-time high.
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UBER 5D chart
The move higher came after Wells Fargo raised its price target for Uber to $120 from $100 on the back of solid bookings, strong ride growth and tailwinds from favorable currency trends. Wells Fargo’s updated price forecast implies an upside of 28% from Uber’s Friday closing price.
— Adrian van Hauwermeiren, Lisa Kailai Han
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XLI 5D chart
The sector has gained 13.5% year to date, and is now this year’s top performer. It was last pacing for its seventh straight daily gain.
Components pushing the sector higher included Uber, TransDigm, Johnson Controls, Trane Technologies, Quanta Services and Fastenal. Each of these names hit a new 52-week high on Monday.
— Gina Francolla, Lisa Kailai Han
Mike Intrator, Chief Executive Officer and founder of CoreWeave, (C) rings the opening bell surrounded by Executive Leadership and family during the company’s Initial Public Offering (IPO) at the Nasdaq headquarters on March 28, 2025 in New York City.
Michael M. Santiago | Getty Images
Artificial intelligence hyperscaler CoreWeave said Monday it will acquire Core Scientific, a leading data center infrastructure provider, in an all-stock deal valued at approximately $9 billion.
Shares of CoreWeave fell more than 4% following the news, while Core Scientific stock plummeted about 20%.
The transaction is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approval.
— Yun Li
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XLK 3M chart
The XLK’s relative performance over the past three months – or 60 days – marks its strongest since 2003.
— Nicholas Wells, Lisa Kailai Han
Here are some of the stocks moving in premarket trading:
- Geo Group, CoreCivic — Shares of the private prison companies gained 7.5% and 2.8%, respectively. President Donald Trump’s spending and tax cut law includes a large increase in funding for immigration detention centers.
- SolarEdge Technologies — The solar company slipped 2%, after it gained 39% last week when a tax on solar and wind projects was removed from Trump’s spending bill. However, the legislation also ended federal support for solar and wind power.
- MGM Resorts International — The casino stock shed more than 2% after Goldman Sachs initiated coverage with a sell rating. Goldman expects pressure on MGM’s free-cash-flow generation to weigh on capital returns and valuation.
To see more premarket movers, read the full story here.
—Michelle Fox
U.S. Treasury Secretary Scott Bessent speaks to reporters at the U.S. Capitol as Republican lawmakers struggle to pass U.S. President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., U.S., June 27, 2025.
Elizabeth Frantz | Reuters
U.S. Treasury Secretary Scott Bessent said Monday he expects multiple trade deals to be revealed this week.
“We are going to have several announcements in the next 48 hours,” Bessent said in an interview on CNBC’s “Squawk Box,” adding that he expects “it’s going to be a busy couple of days.”
A deadline is looming on so-called reciprocal tariffs that President Donald Trump announced on April 2. After initially revealing a menu of dozens of duties he would levy against U.S. trading partners, Trump walked back the plan and opened negotiations with the targeted countries.
“What President Trump is concerned about is the quality of the deals, not the quantity,” Bessent said. “We’ve had a lot of people change their tune in terms of negotiations. So my mailbox was full last night with a lot of new offers, a lot of new proposals.”
Bessent did not specify which countries would be involved.
—Jeff Cox
In a Monday note, Bank of America stood by its base case that the Federal Reserve wouldn’t lower interest rates this year.
“If the data stream continues to show resilience, the path of least resistance for the Fed is to remain in wait-and-see mode given upside risks to inflation,” wrote economist Aditya Bhave. “Our base case is that activity will hold up through the summer and accelerate in the fall as tariff uncertainty fades and the tailwind from fiscal kicks in. As a result, we stick to the view that the Fed won’t cut this year.”
Bhave added the caveat that this could change in the case that “the risk scenario of a material economic deterioration materializes.”
— Lisa Kailai Han
Elon Musk speaks during a press event with U.S. President Donald Trump (not pictured), at the White House in Washington, D.C., U.S., May 30, 2025.
Nathan Howard | Reuters
Tesla shares were down more than 6% after CEO Elon Musk said he is launching his own political party.
The party would be called the “America Party” and could focus on “on just 2 or 3 Senate seats and 8 to 10 House districts.”
“Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people,” Musk said.
Tesla investors have been concerned about Musk’s political involvement of late. When Musk left the so-called department of government efficiency in May, Tesla shares got a boost. Now, his re-entry into politics is making Wall Street nervous.
U.S. President Donald Trump speaks to members of the media on board Air Force One on the way to New Jersey, U.S., July 4, 2025.
Nathan Howard | Reuters
Trump on Sunday threatened to add an additional 10% tariff on countries that aligned with “Anti-American policies” of BRICS countries.
“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” Trump said in a post on Truth Social Sunday evening stateside.
Trump’s post came after the bloc, which met in Brazil, voiced “serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO rules.” It also warned that the “proliferation of trade-restrictive actions” could disrupt the global economy.
— Anniek Bao
We’re 10 minutes into the first trading session of the week, and European stocks are trading in mixed territory.
The pan-European Stoxx 600 was last seen hovering just below the flatline, with no consensus movement among regional sectors.
Major bourses are also moving in opposite directions, with London’s FTSE 100 down 0.1%, the French CAC 40 little changed, and Germany’s DAX gaining 0.4%.
— Chloe Taylor
U.S. President Donald Trump stands next to U.S. Secretary of Commerce Howard Lutnick, as he speaks to members of the media, upon his arrival at Morristown Airport, in Morristown, New Jersey, on July 6, 2025.
Nathan Howard | Reuters
U.S. President Donald Trump and high-ranking Cabinet officials confirmed that tariffs will go into effect Aug. 1, not July 9.
Trump and Commerce Secretary Howard Lutnick were asked in an interview with pool reporters Sunday to clarify when the new higher tariffs rates will be implemented. Lutnick responded, “Tariffs go into effect Aug. 1. But the president is setting the rates, and the deals, right now.” Trump assented with the statement.
Earlier in the day, Treasury Secretary Scott Bessent said in an interview on CNN’s “State of the Union” that tariffs announced back in April will go into effect on Aug. 1 for those countries that have yet to reach an agreement with the U.S. He said duties will “boomerang” back to higher April 2 levels if there is no progress.
As of Sunday, Trump’s April 9 executive order which established the July 9 tariff implementation date did not appear to have been formally revised. While the president has broad tariff powers, the April 9 order would typically be replaced with a new order establishing the Aug. 1 date.
The White House did not immediately reply to a question from CNBC about whether the president planned to issue a new executive order before July 9.
— Sarah Min
U.S. stock futures opened lower Sunday.
Dow Jones Industrial Average futures slid by 110 points, or 0.3%. S&P 500 futures and Nasdaq 100 futures dipped 0.3% and 0.3%, respectively.
— Sarah Min
