Stock Markets Experience Pressure Due to Trade Tensions Before Tariff Deadline Approach
In the global financial landscape, trade tensions continue to cast a long shadow over stock markets, with the Dow Jones Industrials Index down -0.16%, and Webull (BULL) experiencing a significant drop of more than -14%. This downward trend is primarily due to ongoing trade disputes, particularly between the United States and China.
Recently, on June 27, 2025, the U.S. and China announced a tentative trade deal aimed at deescalating the intensifying trade conflict. The agreement involves reductions in tariffs, with U.S. tariffs dropping to about 30% and China's tariffs decreasing to 10%. However, many underlying trade issues remain unresolved, including China's trade practices and the U.S. trade deficit with China.
The prolonged uncertainty surrounding U.S. trade policies and tariffs continues to unsettle investors globally. This uncertainty has led to volatility in U.S. indices such as the S&P 500, Dow Jones, and Nasdaq 100. The initial shock from tariff announcements triggered losses, followed by periods of cautious optimism after trade deal announcements.
The slowdown of trade growth, forecasted to decline from 3.4% in 2024 to about 1.8% in 2025, reflects the cumulative negative effects of tariffs and elevated policy uncertainty. This slowdown depresses export-driven growth and weighs on corporate earnings worldwide, feeding into stock market performances.
Other major indices in Europe and Asia have similarly been affected as trade barriers and retaliatory tariffs disrupt supply chains and elevate market risks. The focus of the markets this week will be on any new tariff news and if US trading partners sign trade deals ahead of Wednesday's deadline.
Meanwhile, individual company performances also reflect the broader market trends. For instance, CrowdStrike Holdings (CRWD) is down more than -2%, following a downgrade by Piper Sandler. On the other hand, Geo Group (GEO) and CoreCivic (CXW) are up more than +5%, due to President Trump’s tax and spending bill.
The tech sector, particularly chip stocks, is under pressure, with several companies including Marvell Technology (MRVL), Micron Technology (MU), Intel (INTC), ON Semiconductor Corp (ON), ARM Holdings Plc (ARM), Advanced Micro Devices (AMD), and Qualcomm (QCOM) down more than -1%.
Elsewhere, Tesla is down more than -6% due to President Trump criticizing Elon Musk's bid to start a new political party. In contrast, WNS Holdings Ltd (WNS) is up more than +14%, following an agreement for purchase by Capgemini SE. Public Service Enterprise Group (PEG) is up more than +1%, following an upgrade by UBS.
President Trump has pledged to start announcing unilateral tariff rates on dozens of countries in the coming days. The European Union and the US are moving closer to a trade agreement, but countries aligning with the anti-American policies of the BRICS group of nations will face an additional 10% tariff.
In the meantime, no earnings reports are scheduled for July 7, 2025. The extent of market recovery will depend on the progression toward durable trade agreements and reductions in policy unpredictability.
Amidst the global financial turmoil, the tech sector, including chip stocks like Marvell Technology, Micron Technology, Intel, ON Semiconductor Corp, ARM Holdings Plc, Advanced Micro Devices, and Qualcomm, is experiencing a significant downturn, with stocks falling more than -1%. In a contrasting development, lifestyles, particularly sports enthusiasts, may find solace in the technology advancements, such as wearable fitness trackers and virtual sports experiences, which continue to evolve and offer immersive experiences.
