Stocks Hit After Trump Tariff Update – Dow Down 1%
US stock markets took a big hit in trading yesterday as President Trump advised of higher tariffs on goods from Japan and South Korea. The Dow dropped 0.94%, the S&P 0.79%, and the Nasdaq fell 0.92%, with investors concerned that there may be more surprises to come in the next few sessions. The dollar jumped higher against the majors, with the JPY particularly hurt, the DXY up 0.37% to 97.54. US Treasury yields also pushed higher again, the 2-year up 1.3 basis points to 3.893%, and the 10-year up 3.4 basis points to 4.379%. Oil prices rose on demand expectations despite concerns over more OPEC+ production increases, Brent up 1.90% to $69.59, and WTI up 1.42% to $67.95. Gold ultimately closed near flat after dipping earlier in the day, down just 0.03% at $3,335.85 by the New York close.
Tariff Trading Strategy for Days and Weeks Ahead
There is no doubt that US tariff updates have dominated market moves over the last nine months, and traders are preparing for more intense sessions over the next few days that should stretch into longer-term strategies over the coming months. We are definitely in the middle of short-term impact markets, with President Trump having financial products on a string as he seems to change direction on an almost hourly basis, and intra-day traders cannot afford to ignore any updates as they make percentage changes swiftly. However, longer-term traders will be looking for clarity once deals are eventually in place that will allow them to analyze the real impact of these tariffs on a country-by-country basis in the coming years. The issue for many in the coming days is how much of the move they could possibly miss out on if they do wait for the murky waters to clear and we have a better idea of the global trade landscape ahead.
Trade News to Dominate Markets Again
The macroeconomic calendar does pick up a bit today, although after last night’s updates and the deadline fast approaching, traders are expecting tariff updates from the US to dominate market sentiment and flows. The Asian session is expected to start on the back foot today after a tough day on Wall Street and President Trump targeting Asian countries on the tariff front. The focus will move to Australia later in the day when the Reserve Bank of Australia makes its rate call. The market is pricing in a 95% chance that the bank cuts by 25 basis points today, and traders are expecting plenty of volatility around the event in the Aussie dollar. There is little on the calendar in the European session today and just the Canadian Ivey PMI numbers due out once New York opens, so most market players are expecting trade news to influence markets as we progress through the day.
The post General Market Analysis – 08/07/25 first appeared on IC Markets | Official Blog.