US stocks dip as Trump’s tariff letters dent optimism

As President Trump sent letters to different countries informing them what rate their imported goods will be levied at in August if they don't make a deal, the damage was much less severe than the drubbing that followed Liberation Day, as traders seem to keep hope that the sequel to the Rose Garden Rout and Rebound will have a similar happy ending.

Your Evening Briefing July 07, 2025 US stocks dip as Trump's tariff letters dent optimism Suddenly it sounds a lot more like early April, with high tariffs being bandied about and stocks moving lower. But as President Trump sent letters to different countries informing them what rate their imported goods will be levied at in August if they don't make a deal, the damage was much less severe than the drubbing that followed Liberation Day, as traders seem to keep hope that the sequel to the Rose Garden Rout and Rebound will have a similar happy ending. The S&P 500 and Nasdaq 100 closed down 0.8%, while the Russell 2000 slumped 1.5%. Every S&P 500 sector ETF fell except for utilities, with consumer discretionary faring the worst. The day's gains were led by Tractor Supply and Palantir, which were up 3.9% and 3.4% respectively. Meanwhile Tesla led declines, falling 6.8% after Elon Musk's plan to start an "America Party" fostered another war of words on social media with President Trump and analysts said the EV maker stands to lose about $255 million in regulatory credit revenue each quarter going forward. Meanwhile... Japanese car companies Toyota, Nissan, and Honda all traded lower after President Trump's proposed 25% tariff on goods from Japan and South Korea. Shares of recently IPO'd retail darling CoreWeave fell 3% the company announced plans to buy crypto miner (and business partner) Core Scientific in an all-stock deal worth about $9 billion when it was announced — and 3% less now. Shares of the acquired company tumbled nearly 18%. Stellantis shares fell 5% after the Jeep maker faced a trifecta of bad headlines including an analyst downgrade, reports of lower production numbers in Italy, and a new NHTSA probe. Semiconductor stocks including Marvell, ON Semiconductor, and Taiwan Semiconductor all dipped on the heels of a report that the Trump administration is cracking down on China's ability to access AI chips via Malaysia and Thailand. Uber shares jumped 3%, hitting an intraday all-time high of $97. The move extends a recent rally fueled by steady profits and optimism around the ride-hailing giant's new tech investments. Bit Digital soared 18% after the publicly traded digital asset platform announced that it had completed its digital asset treasury transition to ethereum from bitcoin. GEO Group, which derives over 40% of its revenue from contracts with ICE, rose 4.5% after the GOP's latest budget bill pushed more federal dollars on the growing network of deportation detention centers. — Luke Kawa, Markets Editor & Nia Warfield, Markets Writer Datadog is now in the S&P 500. These big stocks still aren't. How do you get into the S&P 500 anyway? A weighty market value helps, but it's not the only factor that matters. Read more. Amazon's Prime Day could be the shopping spree that consumers (and the economy) have been waiting for This year's mega sales event is longer, earlier, and arriving just as shoppers tighten their belts. Read more. TODAY'S BIG MOVE (Kevin Dietsch/Getty Images)) Tesla stock falls as the Trump-Musk feud is heating up again The billionaires are fighting on their respective social media platforms again, sending Tesla stock down 7% today. Tesla CEO Elon Musk and President Donald Trump rekindled their on-again, off-again online feud over the holiday weekend, when Musk claimed to have launched his threatened third political party, the "America Party." Read more. How Trump 2.0's trade war is very different compared to his first term More tariff revenues are coming from the rest of the world than from China. Elon Musk wants to challenge America's "one-party" system About 60% of US adults back the idea of a third major party. Datadog is now in the S&P 500. These big stocks still aren't. How do you get into the S&P 500 anyway? A weighty market value helps, but it's not the only factor that matters. It's Amazon Prime Day versus Walmart Deals in a retail discount showdown Walmart has been powering through the e-commerce world, bringing in $79 billion in revenue last year and growing explosively... just like Amazon in its prime. Meme coin bonk passes $TRUMP in market capitalization Bonk's $1.75 billion valuation makes it the largest meme coin on the solana blockchain. Robinhood* price target doubled by Citi They're still neutral on the shares.  The US economy is powering along Six charts about the economy. Del Monte's bankruptcy is a reflection of just how much America's eating habits have changed Once a pantry staple, the brand has been squeezed by a costly postpandemic reset and softening demand. "F1" is now Apple's highest-grossing movie at the box office The movie is racing past records for Apple. Joey Chestnut roasts other hot dog eating contenders as he reclaims Nathan's crown The GOAT of competitive glizzy guzzling is back. *Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company. Was this email forwarded to you? Don't miss out on future stories — subscribe to The Wrap and get your daily dose of financial news straight to your inbox.  Craving more insights in your inbox? Subscribe to Chartr and Snacks for quality reads. We care what you think! 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