Trump threatens new tariffs, putting pressure on Wall Street; Bitcoin retreats
Bitget2025/07/04 20:10- Trump threatens tariffs, puts pressure on stock futures
- Investors seek refuge in gold and reduce risk
- Bitcoin and Ether follow decline amid trade tensions
After a record-breaking week for the S&P 500, U.S. stock futures fell on Friday, dropping 0,6% in the index after U.S. President Donald Trump signaled the possibility of new unilateral tariffs of up to 70%, adding to pressure on global trade relations.
In Europe, the Stoxx 600 fell 0,7%, with miners and automakers among the biggest losers. The dollar weakened and gold rose 0,3%, reflecting a search for safer assets. Asian stocks also closed lower, and U.S. markets were closed for the July 4 holiday.
Despite the recent recovery since the April turmoil, investors remain wary of the escalating trade war and its impact on corporate profits. Neil Wilson, strategist at Saxo UK, said: “Today is a good day to reduce risk a little bit. But I don’t think there’s a fundamental shift, it’s all on the margins at the moment.”
Bank of America’s Michael Hartnett warned of rising bubble risks, especially after the S&P 500 surged to near 6.300 and a $3,4 trillion tax-cutting package was passed. “Overbought markets can stay overbought because greed is harder to overcome than fear,” he said.
On the exchange rate front, the euro rose 0,1%, the pound remained stable and the yen appreciated 0,4%. Among cryptocurrencies, Bitcoin fell 1,6%, trading at US$ 107.515, while Ether fell 3,6%, trading at US$ 2.480.
Tensions between China and the European Union have escalated, with Beijing canceling part of a summit and imposing anti-dumping duties on European cognac, putting pressure on exporters such as Remy Cointreau and Pernod Ricard.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
CyberLeek threatens full GTA 6 leak if Solana token hits $30 million
Micron now earns more than Apple! Apple urgently needs chips, Micron holds pricing power.
Micron Technology reported a net profit of $37.7 billion in the fourth fiscal quarter, surpassing Apple's $29.8 billion for the same period, thus becoming the more profitable company for the quarter. The memory shortage has given Micron strong pricing power, with its CEO stating that they “cannot meet customer demand.” The revenue guidance for next quarter is as high as $61.5 billion. Meanwhile, Apple's gross margin continues to be pressured by persistent memory costs, having dropped from 49.3% to a guidance range of 46.5%.
The "Eye of the Storm" in the Global Economy: Debt Crisis in Developed Countries
The IMF warns that developed economies are becoming the "eye of the storm" for global debt risks. Countries such as the United States and France accumulated high levels of debt during periods of low interest rates, but now rising interest rates are pushing up repayment costs, and fiscal consolidation faces political resistance. BofA Securities points out that the United States is facing declining tax revenues, France has structural income decline issues, and the UK and Japan are also under pressure. The deteriorating debt sustainability of developed countries may impact global financial markets through shocks in interest rates and capital flows.
Crypto prices
More
