Trump Proposes Tariffs on European Goods, Markets Rattle
The return from long weekend saw the markets getting rattled as President Trump's proposed tariffs starting at 10% on goods from several European countries related to disputed control of Greenland enflamed cross-Atlantic tensions. Higher-beta names led the declines as investors rotated out of risk-assets in the U.S. - Tech, Consumer Discretionary, and Financials were the worst performers on the S&P 500 while Consumer Staples was the single sector in the green. Precious metals, meanwhile, continued their move higher amid the risk-off environment, with an added boost coming as a result of lower U.S. Dollar. Longer-term Treasury yields also rose as investors fret that European holders will be inclined to cut their U.S. debt positions - Tuesday morning headline that Danish Pension Fund Akademiker sold its U.S. Treasuries was greeted with increasing unease by the U.S. fixed income markets.Following the broad-based selling, the opening hour of the evening session is seeing some modest relief - S&P e-minis, Dow Industrials, and Nasdaq 100 contracts are all up by a decimal, though sentiment may yet turn sour as disappointing guidance accompanying earnings out of Netflixis pressuring the stock afterhours and signaling consumer caution even with one of the internet "staples" in the Communication Services. In commodities, WTI Crude Oil is back below $60 per barrel mark, though Gold and Silver remain buoyed around $4,780 and $95 per ounce.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Progress Softwareup 7.1%United Airlinesup 3.4%Zions Bancorporationup 1.8%DOWN AFTER EARNINGS -Netflixdown 4.8%Bank OZKdown 3.7%Hancock Whitneydown 1.3%Interactive Brokersdown 0.8%ALSO LOWER -Newegg Commercedown 11.4% after disclosing Chairman detainmentCorvus Pharmaceuticalsdown 7.4% after equity offeringBioAge Labsdown 3.6% after equity offering
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Sen. Elizabeth Warren Critiques Trump's $1M Investment Ties to Netflix Merger
- Merger Controversy: Senator Elizabeth Warren criticized President Trump's involvement in the Netflix and Warner Bros. merger after he disclosed over $1 million in investments tied to the deal, raising concerns about potential conflicts of interest and regulatory scrutiny.
- Chip Industry Protection: South Korea plans to negotiate with Washington to safeguard its memory chip industry following a 25% tariff on advanced AI chips imposed by the Trump administration, which could disrupt the global semiconductor supply chain and impact South Korea's economic stability.
- TikTok Compliance: TikTok has secured its future in the U.S. by finalizing a deal with its parent company ByteDance to create a majority American-owned joint venture aimed at addressing national security concerns and complying with U.S. laws, ensuring its continued operation in the U.S. market.
- Banking Resistance to Crypto Legislation: Eric Trump stated that major U.S. banks are actively resisting cryptocurrency legislation, viewing it as a threat to their long-standing monopoly over the financial system, which could impact future financial innovation and market competition.
Trump Reaches Greenland Deal Framework, S&P 500 Rises 1.16%
- Market Rally: Following President Trump's announcement of a framework deal with NATO regarding Greenland, the S&P 500 rose by 1.16%, the Dow Jones by 1.21%, and the Nasdaq 100 by 1.36%, indicating a positive market response to policy stability.
- Bond Yields Decline: The 10-year T-note yield fell by 4 basis points to 4.25%, supported by concerns over Fed independence and rising Japanese bond yields, which contributed to the stock market's recovery.
- Gold Prices Hit Record: Amid the Greenland crisis prompting safe-haven buying, gold prices surged by 1% to a new record high, reflecting increased market anxiety and heightened demand for gold as a store of value.
- Natural Gas Surge: Natural gas prices soared over 24% to a six-week high, driven by an Arctic cold front expected to boost heating demand, leading to significant gains in natural gas-producing stocks and showcasing the energy market's robust activity.
