Equities Hit a Wall as Trump’s Comments Lift Copper – US Market Wrap
Stocks struggled to gain traction around all-time highs as Trump announced that the August deadline for the introduction of reciprocal tariffs will not be extended, amid optimism that he is open to trade talks. Copper prices rose after Trump advocated for a 50% tariff. Treasuries joined the global slump in longer-term bonds.
Following a blistering rally from April lows, the S&P 500 hardly moved as traders remained vigilant for headline risk. Freeport-McMoran, a copper producer, rallied. A drugmaker index swung as Trump suggested he could give pharmaceutical companies at least a year before imposing a 200% tariff on foreign-made drugs. Tesla rose in megacaps, while Amazon sank as Prime Day sales began.
As Treasuries fell, 30-year rates surpassed 5%, following a selloff in longer-dated Japanese and German bonds. A $58 billion US auction of three-year notes garnered low demand. That was the first of three auctions this week. The dollar fluctuated.
Meanwhile, Treasury Secretary Bessent plans to visit Japan next week for the 2025 World Expo in Osaka, according to persons familiar with the situation. The visit would follow Trump’s letter on Monday announcing his decision to raise tariffs on all Japanese imports to 25%, effective August 1, slightly higher than the 24% rate previously set in April.
