US stocks were little changed on Tuesday as Wall Street weighed President Trump’s threat of stiff tariffs on key trading partners against his reprieve on the return of sweeping “Liberation Day” duties.
The S&P 500 (^GSPC) rose 0.1%, while the Dow Jones Industrial Average (^DJI) fluctuated along the flat line. The tech-heavy Nasdaq Composite (^IXIC) edged up 0.3%, on the heels of a losing start to the week for the major gauges.
Stocks are holding steady as markets look for the positive in Trump’s latest trade policy shifts. He has moved his July 9 deadline for the resumption of “reciprocal” tariff rates to Aug. 1, giving countries three extra weeks to negotiate trade deals with the US.
The president said late Monday that the Aug. 1 deadline was “firm, but not 100% firm” and that he’s open to extensions if countries make proposals. That provided fuel for the “TACO” trade — the idea that “Trump always chickens out,” or that he will eventually dial back on his trade threats.
Read more: The latest on Trump’s tariffs
Stock benchmarks in Japan and South Korea closed higher on Tuesday, despite Trump’s threat to start imposing 25% duties on imports from those countries in August. Another 12 US trading partners received letters laying out tariffs of up to 40% on Monday, with Malaysia, South Africa, and Indonesia among them. The letters said the rates could be adjusted if countries tailor their trade policies as the US wants.
In response, South Korea said it would kick trade negotiations with the US into high gear, adding that it considered the new date an extension of a grace period.
“The president may send more letters in the coming days and weeks,” the White House said in a statement.
Meanwhile, Amazon (AMZN) is set to kick off its Prime Day deals later, with investors on watch for signs that tariff costs are pushing up price tags. The e-commerce giant has extended the event to four days this year.
Elsewhere, Wall Street expects a quiet week in terms of economic releases and earnings. Minutes from the Federal Reserve’s June meeting are due on Wednesday, while Delta’s (DAL) results on Thursday signal the return of earnings season.
LIVE 10 updates
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Stocks were little changed Tuesday as investors awaited further trade developments after President Trump sent tariff letters to 14 countries and extended his deadline for “reciprocal” tariff rates from July 9 to August 1, giving trading partners three more weeks to negotiate.
The S&P 500 (^GSPC) rose 0.1%. The Dow Jones Industrial Average (^DJI) fell slightly. The tech-heavy Nasdaq Composite (^IXIC) edged up 0.3%, on the heels of a losing start to the week for the major gauges.
Tesla stock (TSLA) rose 1% after sinking more than 6% in the prior session as CEO Elon Musk announced his intention to start a new third political party in the US.
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Tesla stock (TSLA) rose 1% in premarket trading on Tuesday. However, it remains below the key 50-day, 100-day, and 200-day moving averages, according to Yahoo Finance analysis.
Yahoo Finance’s Brian Sozzi writes:
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Reuters reports:
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Solar stocks fell in premarket trading on Tuesday after President Trump issued an executive order directing federal agencies to strictly enforce provisions in the “big, beautiful bill” that would end clean energy subsidies.
Under the law and Trump’s executive order, only projects that have “a substantial portion of a subject facility” built in the next 12 months can claim tax credits, and the projects must be in service by 2027. Trump also directed the heads of Treasury and Interior to write new guidance in the next 45 days.
Sunrun (RUN) fell 7.2%, Enphase (ENPH) dropped 3.4%, and First Solar (FSLR) was down 2.7%. NextEra Energy (NEE) and AES (AES) slid 2.3%.
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Yahoo Finance’s Hamza Shaban reports in today’s Morning Brief:
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Meta (META) has hired Ruoming Pang, the head of Apple’s (AAPL) artificial intelligence models team, in another setback for the iPhone maker’s AI push.
Pang is the latest big hire in Meta CEO Mark Zuckerberg’s fierce AI headhunting spree, and he was offered a package worth tens of millions of dollars to lure him away from Apple, sources told Bloomberg.
Bloomberg reports:
Read more here.
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Here are some top stocks trending on Yahoo Finance in premarket trading:
First Solar (FSLR) shares fell 2% on Tuesday before the bell following the announcement on Monday that President Trump’s “big, beautiful bill” will end clean energy subsidies for companies like First Solar. Battery provider, SolarEdge Technologies (SEDG), fell 4% and Enphase Energy (ENPH) also dropped 4%.
Tesla (TSLA) stock rebounded on Tuesday and was up 1% in premarket trading after closing 6% down on Monday. CEO Elon Musk announced he plans to continue in politics by making the “America Party,” despite calls from investors to refocus on running his company.
Alaska Airlines (AAL) stock rose 3% after the airline received a positive earnings preview. UBS Securities said in an earnings preview Monday that it expects Alaska Airlines’ second quarter earnings per share to be in line with company guidance due to demand stabilizing.
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Japan and South Korea’s stock benchmarks edged higher on Tuesday, despite President Trump’s threat of 25% tariff rates in letters sent to the top US trading partners.
Analysts suggest markets are cautiously hopeful that the countries can hammer out a trade deal with the US, as Trump has given more breathing space by pushing back the start of tariffs to Aug. 1.
Reuters reports:
Read more here.
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Oil dipped early Tuesday morning as investors eyed the impacts of Trump’s fast-approaching tariffs, despite the deadline for implementation being pushed until August. In combination with tariff speculation, OPEC+ announced a decision to increase supply in August, further lowering the price of the commodity.
Bloomberg reports:
Read more here.
