US stocks plunge, USD rises after Trump posts tariff letter

The US stock market fell sharply on the first day of the week when US President Donald Trump posted a letter to 14 countries, announcing the tariffs that will be imposed on goods from these countries from August 1.

Traders at the New York Stock Exchange - Photo: REUTERS

According to CNBC On July 7th, the Dow Jones index fell 422.17 points (0.94%), closing at 44,406.36 points.

The S&P 500 index fell 0.79%, to 6,229.98 points. The Nasdaq Composite index lost 0.92%, closing at 20,412.52 points.

This was the sharpest decline since mid-June for all three major US stock indexes.

Shares of Japanese automakers in the US fell sharply, with Toyota Motor down 4% and Honda Motor losing 3.9%.

Additionally, Tesla shares fell 6.8% after CEO Elon Musk announced the formation of a new political party in the US called the "American Party," according to Reuters .

The MSCI index measuring global equities fell 5.80 points (0.63%) to 919.93 points, while the pan-European STOXX 600 index rose 0.44%.

The yield on 10-year US Treasury bonds rose 5.7 basis points on the day, to 4.397%.

The USD rose most sharply against the yen, with the exchange rate at 146.130 yen per USD, up 1.09%.

The euro fell 0.57% against the USD, to 1.172 USD per euro.

The USD Index, which measures the strength of the US dollar against six other major currencies, rose 0.517% to 97.467, reaching its highest level in a week.

"Trade, inflation, and earnings reports will be the next three key factors that could push the market up or down, depending on how they unfold. However, the market prefers certainty, and today's news added to that uncertainty, leading to a sell-off," Adam Sarhan, managing director of 50 Park Investments in New York, told Reuters .

According to letters sent to the leaders of 14 countries that Trump posted on the social media platform Truth Social, the US will impose tariffs on goods these countries export to the US, starting August 1st.

Accordingly, the US will impose tariffs of 25% on Japan, South Korea, Tunisia, Malaysia, and Kazakhstan; 30% on South Africa and Bosnia and Herzegovina; 35% on Serbia and Bangladesh; 36% on Cambodia and Thailand; and 40% on Laos and Myanmar.

On the same day, the White House issued an executive order postponing the re-imposition of Trump's retaliatory tariffs until 00:01 on August 1st.

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Thanh Hien

Source: https://tuoitre.vn/chung-khoan-my-lao-doc-dong-usd-tang-gia-after-ong-trump-dang-thu-thue-quan-20250708053525104.htm