Wall Street Ignores New Tariff Wave 09/07/2025

HOT stories for today

US market wrap:

• Markets were mixed on Tuesday as investors digested a fresh wave of tariff threats from President Trump. The S&P 500 edged down 0.07%, the Nasdaq gained a modest 0.03%, and the Dow fell 0.4%. Broader indexes remained steady, but specific sectors experienced sharp movements in response to policy headlines. 
• Copper prices jumped after Trump announced a surprise 50% tariff on imports during a Cabinet meeting, targeting key materials deemed critical to national security.  Attention now shifts to Wednesday’s FOMC minutes, which could offer insight into how the Fed is weighing political risks and inflation uncertainty.

Wall Street Ignores New Tariff Wave

• U.S. equities treaded water Tuesday as President Trump unveiled fresh tariff plans, 50% on copper imports and up to 200% on pharmaceuticals. The muted market reaction suggests investors may be downplaying the economic impact despite mounting trade tensions. White House economic adviser Stephen Miran downplayed inflation risks, calling them “rare events” akin to meteors. However, some analysts warn that investor complacency could backfire, especially if trade friction escalates further.
• Elsewhere, Tesla (TSLA) remained under pressure as Elon Musk lashed out at longtime bull Dan Ives for suggesting that the board oversee his political actions. Meanwhile, Shein filed for a Hong Kong IPO in a bid to pressure U.K. regulators. Despite the noise, markets remain calm—for now. But with the August 1 tariff deadline approaching and inflation concerns lingering, risks are far from off the table.

Stocks on the move:

• Hershey ($HSY) slid more than 3% after announcing that Wendy’s CEO Kirk Tanner will replace Michele Buck as chief executive on August 18 after her two-decade tenure with the company
• Chemours ($CC) jumped over 9% as the EPA withdrew proposed chemical restrictions, while Huntsman ($HUN) climbed 5.7% in response to the same regulatory shift
• SoFi Technologies ($SOFI) rose 4.6% to a 52-week high after expanding client access to private market investment funds
• Moderna ($MRNA) rallied 11% without a clear catalyst, marking its best day since early March

Watchlist: MRNA, HSY, SOUN, SOFI, TSLA, JPM, FSLR

Today’s action

• Asia-Pacific equities showed mixed performance on Wednesday as renewed trade tensions dampened sentiment. U.S. President Donald Trump confirmed that new tariffs, targeting pharmaceuticals and copper, will go into effect on August 1, ruling out any further deadline extensions. Hong Kong’s Hang Seng Index declined 0.83%, while mainland China’s CSI 300 hovered flat. In Japan, the Nikkei 225 edged down 0.15%, though the broader Topix managed a slight 0.19% gain. South Korea’s Kospi rose 0.43%, and the Kosdaq added 0.44%. Australia’s ASX 200 slipped 0.43%, weighed down by mining and materials.
• U.S. stock futures were muted early Wednesday. Dow Jones futures eased 27 points (–0.06%), S&P 500 futures were down 0.05%, and Nasdaq 100 futures dipped slightly. Traders remain alert as they await the release of the FOMC meeting minutes later today, looking for insight into the Federal Reserve’s rate path amid rising trade friction.

Bitcoin

• Bitcoin (BTC) is once again approaching the $110,000 mark, sparking renewed excitement among crypto traders. According to blockchain analytics firm Santiment, social media chatter has turned decisively bullish, with the ratio of positive to negative BTC mentions hitting a three-week high.
• While sentiment is heating up, analysts caution that such spikes in trader optimism often precede short-term pullbacks. Still, with funding rates normalizing and broader risk appetite improving, bulls are eyeing a potential breakout. Ethereum (ETH) and Solana (SOL) are also attracting attention, with some traders calling for aggressive upside targets amid rising conviction and technical strength.
  Watchlist: BTC: 99,000–112,000 | ETH: 2,000–2,800 | SOL: 140–183

Forex
 

• The Japanese Yen (JPY) extended its decline Wednesday, with USD/JPY holding near 147.00. Investors remain cautious over the potential economic fallout from U.S. tariffs set to hit Japanese goods on August 1. Domestic political uncertainty and fading hopes for BoJ rate hikes are further weighing on the yen, while a resilient dollar benefits from reduced Fed cut expectations.
• Meanwhile, EUR/USD slid to 1.1705 during Asia’s session, pressured by renewed trade tensions. President Trump’s threat of a 50% tariff on copper imports rattled sentiment, adding to investor caution ahead of Wednesday’s FOMC minutes release.
  Watchlist: EUR/USD: 1.1000–1.1850 | USD/JPY: 140–162

Basic Materials

• Gold (XAU/USD) extended its losses early Wednesday, falling to $3,284 as rising U.S. yields and reduced expectations for a Fed rate cut kept pressure on the metal. The dollar hovered near a two-week high, buoyed by strong bond markets and inflationary concerns tied to Trump’s tariff push. While geopolitical risks linger, they’ve done little to spark safe-haven demand for bullion so far.
• Meanwhile, WTI crude oil traded near $67.15, supported by escalating tensions in the Red Sea following renewed Houthi attacks. Prices gained despite API data showing a surprise 7.1 million barrel build in U.S. inventories. Traders now await official EIA data for further direction.
  Watchlist: Gold: 2,600–3,500 | US Oil: 55.60–75.80

Economic Calendar (EST):

10:00 am: USD Wholesale Inventories
10:30 am: USD Crude Oil Inventories
02:00 pm: USD FOMC Meeting Minutes

Earnings:

Today: No major earnings


The TEFS Analyst team wishes you a successful day!