Newscasts - US stocks fall on tariff jitters; Musk's political plan hits Tesla

Core Scientific

08/07/2025 24:05

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Source: 'Reuters - Business videos'

Description: Wall Street's major indexes closed sharply lower on Monday, after U.S. President Donald Trump announced hefty tariffs against Japan, South Korea and other trading partners while Tesla shares sank after CEO Elon Musk said he was forming a new U.S. political party. Lisa Bernhard has more.

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Video Transcript:

US stocks closed lower on Monday, with the Dow, S&P 500, and NASDAQ each shedding just under 1%. All three indexes added to losses after President Donald Trump announced 25% tariffs on Japanese and South Korean imports due to take effect on August 1. Stocks wobbled further later in the day when Trump announced hefty tariffs on several other countries, including South Africa and Malaysia. Ross Mayfield, Investment Strategist at Baird, said stocks could retreat further as Trump continues to pressure US trade partners.

So, we've got some actual numbers put on trade partners, big trade partners, and then the threat of additional tariffs. You know, we kicked the can down the road a little bit from July 9 to August 1, but not a lot, still not a lot of time to make trade deals with 50+ countries. So, I think there's a continuing anticipation and anxiety about what the final trade deal and tariff levels will look like.

The S&P 500’s biggest drag came from shares of Tesla, which fell nearly 7% after CEO Elon Musk announced the formation of a new political party, further escalating his feud with Trump. It was the stock's biggest daily slide since June 5 and its lowest closing level since that session. Among other movers, shares of WNS Holdings rallied more than 14% after the French IT services firm Capgemini agreed to buy the outsourcing firm for $3.3 billion in cash. And shares of NVIDIA-backed CoreWeave fell more than 3% after the AI hyperscaler said it will buy crypto minor Core Scientific in an all-stock deal valued at about $9 billion. Shares of Core Scientific plunged more than 17.5%.