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NEW YORK, July 7 (Reuters) – Major stock indexes eased while the dollar strengthened against major currencies on Monday as investors awaited the next announcements in the White House’s trade negotiations.
Longer-dated U.S. Treasury yields edged higher.
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The United States will make several trade announcements in the next 48 hours, Treasury Secretary Scott Bessent said on Monday, with a deadline set for Wednesday to get trade deals done.
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The higher rates are scheduled to take effect on August 1.
“We’re down (in stocks) after the long weekend, and it’s somewhat of a critical week in terms of the tariffs,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
“The prospect of what may or may not happen with the trade deals… is causing investors to be somewhat cautious.”
Tariffs are expected to increase prices and to slow down growth, though uncertainty over the ultimate policies may be a bigger drag as it leads businesses to postpone decisions.
S&P 500 companies are soon expected to begin reporting results on the second quarter.
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U.S. President Donald Trump announced in April a 10% base tariff rate on most countries and higher “reciprocal” rates ranging up to 50%, with an original deadline of this Wednesday.
However, he also said levies could range in value from “maybe 60% or 70%,” and threatened an extra 10% on countries aligning themselves with the “Anti-American policies” of the BRICS group of Brazil, Russia, India and China.
The Dow Jones Industrial Average (.DJI), opens new tab fell 313.82 points, or 0.70%, to 44,508.71, the S&P 500 (.SPX), opens new tab fell 40.14 points, or 0.64%, to 6,239.40 and the Nasdaq Composite (.IXIC), opens new tab fell 148.98 points, or 0.72%, to 20,452.90.
MSCI’s gauge of stocks across the globe (.MIWD00000PUS), opens new tab fell 3.84 points, or 0.41%, to 921.89, while the pan-European STOXX 600 (.STOXX), opens new tab index rose 0.37%.
The yield on benchmark U.S. 10-year notes was last up 3.1 basis points on the day at 4.372%. Interest-rate sensitive two-year yields were unchanged on the day at 3.882%.
00:15Market Rundown: Trump’s tariff threats escalate ahead of deadline
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The dollar index , which measures the currency against six major counterparts, rose 0.34% to 97.294 and briefly hit a one-week high.
The euro was down 0.37% at $1.1735. Against the Japanese yen , the dollar strengthened 0.92% to 145.88.
Minutes of the last Federal Reserve meeting are also due this week. Investors are weighing how many times the Fed is likely to cut interest rates this year after jobs data for June on Thursday showed that employers added more jobs than economists had forecast.
The Reserve Bank of Australia is widely expected to cut its rates by a quarter point to 3.60% at a meeting on Tuesday, the third easing this cycle, and markets imply an eventual destination for rates of 2.85% or 3.10%.
U.S. crude rose 0.6% to $67.40 a barrel and Brent rose to $68.98 per barrel, up 1% on the day.
