President Donald Trump signed his big, beautiful bill at a July 4 ceremony at the White House on Friday afternoon, satisfying his voluntary deadline and market desire for some degree of certainty.
By Monday morning, the market had retreated once again as the president had returned to raising questions about tariffs and trade.
Equity futures pointed to a bearish opening after President Trump posted about the tariff deadline on Truth Social on Wednesday.
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“We are pleased to announce that US customs letters and transactions will be delivered from 12pm (east) on Monday, July 7th,” Trump revealed late Sunday night.
The president noted that “countries that align themselves in line with BRICS’s anti-American policies will be charged an additional 10% tariff,” adding that “there is no exception to this policy.”
In another reporting season, still a week away with no new incoming data, investors, traders and speculators parsed the president’s post for guidance on discounting the present value of future cash flows of stock-traded companies.
“The market has entered a holiday weekend with a roll,” says Chris Larkin, E* Trade Managing Director.
Larkin says seasonal indicators suggest that early July is historically the most bullish part of the month, but the S&P 500 has already recovered more than 2% from its new record high, an index established on June 26th.
“In light of this week’s light economic calendar,” Larkin concludes, “taxes could once again become a frontline issue.” The revenue calendar is also light this week, but the new reporting season will begin in earnest on July 15th.
Until the closing bell, the S&P 500 was 0.8% off at 6,229, the Nasdaq composite was 0.9% to 20,412, and the Dow Jones Industrial Average fell 0.9% at 44,406.
Mask vs playing cards
Tesla (TSLA) is one of the biggest losers of the day, and has also slipped 8.4% and shut down 6.8% after CEO Elon Musk said he plans to form a political party in protest of Trump’s new signature law.
In addition to the ghost of presidential retaliation, TSLA stock is once again suspected that its CEO is paying attention to issues other than electric vehicles, Robotaxis, space rockets and/or utility scale renewable energy storage.
“Elon Musk has announced that he is forming a new ‘American Party’ to challenge the Binary Republican/Democrat American political system,” writes Louis Navellier of Navellier & Associates. “Musk was the biggest individual donor of the ’24 election and was extremely helpful in Trump’s victory.”
Navellier also points out that Musk was the “very loudspeaker enemy” of the big beautiful bill due to concerns over national debt.
“Investors are hoping Trump will punish Musk for turning on his bill, and wonder if he will have time to manage many businesses and develop an unlikely plan for a new party that could affect such a strongly established political system,” Navellier concludes.
Nvidia (NVDA) also rose the red number, slipping in at 0.7%, but as of Monday’s closing bell its place at $3.859 trillion on top of the global market capitalization rankings.
NVDA shares added a notch to another new all-time high deadline at $159.34 on Thursday, up 17.4% since earnings announcement on May 28th.
Apple (AAPL) holds the all-time high market capitalization record of $3.915 trillion, founded on December 26, 2024.
AAPL shares fell 1.7%, 25 of the 30 Dow Jones stocks closing down its lower position on Monday.
Amazon.com (AMZN) is only one of the old, epic seven shares that recorded green numbers on Monday, with the e-commerce giant rising 0.1%.
Meta Platform (META) has 0.1% off, Microsoft (MSFT) has 0.2% off, and Google Parent Alphabet (GOOGL) has 1.5% off.
Netflix (NFLX) – Often named as a potential replacement for Tesla in the Mag 7 lineup, it was recently cited as one of the next stocks to split, but it fell 0.6% on Monday, but counted among outperformers for that day
That comes after Seaport Research Partner analyst David Joyce reduced the valuation of telecommunications services stocks from buy to neutral (or hold).
Joyce didn’t share the NFLX’s 12-month price target, but it was noted by a well-known executive who said, “we need time to go against expectations in advertising, aggregation, launching experiences, and expanding sharing again.”
CRWV stock is still hot
CoreWeave (CRWV) was one of the hot IPOSes to watch earlier this year, and certainly tested the adjectives and their inclusion in the list.
CRWV is up 299.3% from the initial public offering on March 28th, accounting for 3.3% slides on Monday.
AI Cloud Company’s management has announced a deal to acquire Core Scientific (CORZ) for $9 billion. CoreWeave leasses data center space from Core Scientific.
CEO Michael Intrator said the acquisition will accelerate CoreWeave’s strategy for deploying AI and high performance computing (HPC) workloads at scale, allowing the company to increase operational efficiency, reduce risk and solidify its growth trajectory.
Corz fell 17.6% in Monday’s trading session.
