Wall Street is holding its breath. Dow Jones futures dipped 0.3% Monday morning alongside similar losses in the S&P 500 and Nasdaq futures, as investors digest a fresh round of aggressive tariffs announced by former President Donald Trump. Meanwhile, bitcoin is surging past $122,000, fueling a frenzy ahead of “Crypto Week” on Capitol Hill.
Trump’s Saturday announcement called for 30% tariffs on imports from the EU and Mexico, with additional hikes for Brazil (50%) and Canada (35%)—a dramatic escalation compared to his April 2 “reciprocal tariffs.” Markets remain cautiously optimistic, but investors are bracing for ripple effects.
Despite last week’s retreat, the stock market rally remains intact. The S&P 500 and Nasdaq briefly touched all-time highs before pulling back, while the Dow slipped 1%. Notably, speculative growth stocks, particularly in cybersecurity and software, took a hit. However, chipmakers like Nvidia, AMD, and Taiwan Semiconductor held firm, with semiconductors rising 1.4% overall.
Bitcoin’s meteoric climb continues, crossing $122,000 overnight as lawmakers prepare to debate crypto regulation. Crypto enthusiasm is juxtaposed against rising Treasury yields (now at 4.42%) and higher oil prices, adding complexity to the inflation outlook.
This week, all eyes turn to earnings reports from JPMorgan, Netflix, and Taiwan Semi, along with June’s CPI and PPI inflation data. These numbers could confirm whether tariffs are already creeping into consumer prices.
What’s next? Investors are treading carefully. Stocks like Google, AMD, and Urban Outfitters are hovering near buy points, but recent pullbacks in growth sectors suggest increased risk. Now’s the time to tighten watchlists, broaden sector focus, and be selective.
Markets may be wobbling, but they haven’t broken. Not yet.
