U.S. Stocks Kick Off Week in the Red After Holiday Break

Hold onto your hats, crypto fans! U.S. stocks stumbled out of the gate on Monday, July 7, after a long Fourth of July weekend. The S&P 500 took a hit, dropping 0.3%, as investors reacted to some spicy comments about tariffs from Treasury Secretary Scott Bessent.

The Dow Jones Industrial Average wasn't spared either, tumbling over 100 points—that's a 0.25% dip. Meanwhile, the S&P 500 lost about 0.35%, and the Nasdaq Composite started the day down by 0.6%. Ouch!

What's got everyone on edge? You guessed it—tariffs! Investors are keeping a close eye on the latest developments, especially President Donald Trump's threats to slap additional tariffs on countries in the BRICS alliance. But that's not all—Bessent's words are stirring the pot too.

In a chat with CNBC, Bessent dropped a bombshell: the U.S. is gearing up to announce some major trade deals in the next few days. He didn't spill the beans on the specifics, but promised it'll be "a busy couple of days" as the July 9, 2025, tariffs deadline looms.

And hold on tight, because Bessent revealed on CNN on Sunday, July 6, that Trump's tariffs are set to kick in on August 1, 2025. That's right, an extension to the July 9 deadline. "There's a lot of foot dragging on the other side, and so I would expect to see several big announcements over the next couple of days," Bessent said on CNN's "State of the Union."

Trump's 10% Tariff Threat on BRICS

While we've been bracing for tariffs, Trump's latest threat to impose an extra 10% tariff on countries aligned with BRICS—Brazil, Russia, India, and China—has sent shockwaves through the market. Remember those "Liberation Day" tariffs earlier this year? They sent stocks into a tailspin before a sluggish April rebound led to record highs in June. Those gains spread to risk assets like cryptocurrencies too, thanks to Trump's 90-day tariff pause and deals with the UK and China.

Despite geopolitical fireworks in the Middle East, stocks have been on a roll, with the S&P 500 hovering near the crucial 6,300 level. Bank of America analysts recently warned that this could be a potential sell signal, so buckle up, folks—it's going to be a wild ride!