Wall Street Pauses As Tariff Concerns Rise, Dollar Eyes Third Straight Gain: What's Moving Markets Monday?

U.S. equities traded sideways on Monday as investor sentiment wavered following President Donald Trump's weekend announcement of a sweeping 30% tariff on all imports from the European Union and Mexico, set to take effect August 1.

Investor sentiment was further clouded by inflation concerns ahead of Tuesday's consumer price index release. Economists anticipate an annual rise from 2.4% to 2.7%, suggesting that companies may be starting to pass on higher import costs to consumers.

The second-quarter earnings season for major U.S. banks kicks off Tuesday, with JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), Wells Fargo & Co. (NYSE:WFC), and BlackRock Inc. (NYSE:BLK) all slated to report results before the bell.

Among sectors, energy stocks lagged as oil prices dropped 1.5% to below $67.60 per barrel. The decline came after Trump stopped short of imposing new sanctions on Russian oil, disappointing markets that had anticipated a tougher stance. While Trump did threaten 100% secondary tariffs on Russian energy exports if a ceasefire isn’t reached within 50 days, the lack of immediate measures weighed on crude.

In contrast, U.S. natural gas prices rose by more than 3%, with futures surpassing $3.40 for the first time in over a week, as rising LNG exports and forecasts for hotter-than-average weather through late July sustained demand.

The U.S. dollar index strengthened for a third straight session, up 1.4% since the start of July, and potentially snapping a five-month losing streak.

Bond markets saw continued volatility, with the 30-year Treasury yield surging to 4.98% — its highest since early June.

In precious metals, gold slipped 0.3% while silver also edged down 0.3% after hitting a fresh 14-year high last week.

Bitcoin (CRYPTO: BTC) rose 0.7% on the day but trimmed earlier gains, pulling back from its record high of $123,278.

Monday’s Performance In Major US Indices, ETFs

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF (NYSE:VOO) flattened at $573.40.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) held steady at $443.51.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) inched 0.2% higher to $555.64.
• The iShares Russell 2000 ETF (NYSE:IWM) edged 0.2% higher to $222.13.
• The Communication Services Select Sector SPDR Fund (NYSE:XLC) outperformed, up 0.8%; the Energy Select Sector SPDR Fund (NYSE:XLE) lagged, down 1.5%.

Monday’s Stock Movers

• Shares of Fastenal Co. (NASDAQ:FAST) climbed 1.5% after the company beat analysts’ estimates on both profit and revenue for the second quarter.
• Ansys Inc. (NASDAQ:ANSS) shares rose 3.9% after Synopsys secured regulatory approval from China for its $35 billion acquisition, paving the way for the deal to close.
• Constellation Brands Inc. (NYSE:STZ) fell nearly 5% amid concerns over proposed U.S. tariffs on Mexican imports. The company, heavily reliant on Mexican beer brands, could face rising costs, with analysts projecting a decline in operating margins for its beer segment this fiscal year.
• APA Corp. (NASDAQ:APA) fell 4% after Jefferies raised its price target to $19 from $17, while maintaining a cautious outlook on the stock.
• Defense stocks extended gains on Monday, with the iShares U.S. Aerospace & Defense ETF (NYSE:ITA) hitting fresh record highs after President Donald Trump announced new military equipment shipments to Ukraine.

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