Index Falls From Record Level; Tesla Stock Tumbles

0
6

[ad_1]

Key Takeaways

  • The S&P 500 fell 0.8% on Monday, July 7, 2025, as President Trump sent letters about impending tariffs to trading partners including South Korea and Japan.
  • Tesla was the weakest-performing stock in the benchmark index as CEO Elon Musk discussed the creation of a new political party.
  • Research analysts lifted their price targets on shares of DoorDash and Uber, citing strong growth forecasts. Both stocks moved higher.

Major U.S. equities indexes dropped to start the new trading week.

Trade policy returned to center stage two days ahead of a July 9 deadline for the negotiation of “reciprocal” tariffs. In letters addressed to world leaders and posted on social media, President Donald Trump said the U.S. will impose 25% levies on goods imported from Japan and South Korea starting Aug. 1, provided the countries are unable to reach a deal before that date. A variety of other trading partners are facing tariffs of up to 40%.

The S&P 500 finished 0.8% lower, receding from the all-time closing high set on Thursday ahead of the three-day Independence Day weekend. The Nasdaq Composite also failed to build on last week’s record close, losing 0.9%. The Dow also closed the session 0.9% lower. Read Investopedia’s full coverage of today’s trading here.

Tesla (TSLA) shares tumbled 6.8%, falling the most of any S&P 500 stock, after CEO Elon Musk said he will form a new political party. Musk’s announcement that he will launch the “America Party” extended the business mogul’s ongoing conflict with Trump, who suggested that Musk had gone “off the rails.” William Blair analysts downgraded Tesla stock to “market perform” from “outperform,” citing the removal of the $7,500 electric vehicle tax credit under the newly passed budget bill.

First Solar (FSLR) shares slipped 4.3%, giving back gains notched late last week. First Solar and other stocks in the renewable energy space surged heading into the long weekend as the final version of the budget bill omitted a proposed tax on wind and solar projects with a certain amount of foreign participation. However, the legislation maintained other provisions that present a challenge to the solar business, including the phase-out of federal tax credits for residential rooftop installations.

Medical device maker Baxter International (BAX) named a new CEO. Andrew Hider, chief executive of Canadian automation solutions firm ATS Corp., has been tapped to take the reins of Baxter by the beginning of September. Baxter shares lost 4.3% in the wake of the announcement.

Shares of Lululemon Athletica (LULU), maker of yoga gear and other athletic attire, sank 4.1%. Monday’s decline reversed gains posted by the stock last week as Trump announced a trade deal with Vietnam, where Lululemon and some other apparel manufacturers have significant manufacturing exposure. Lululemon last week filed a lawsuit against Costco (COST) alleging that the membership warehouse retailer has infringed on trademarks by selling clothing items that are “confusingly similar” to Lululemon’s designs.

Shares of Tractor Supply Co. (TSCO) advanced 3.9%, securing Monday’s top performance in the S&P 500. Analysts expect the provider of lawn and garden tools, animal feed and supplies, and farm maintenance products to post a year-over-year uptick in profit per share on a diluted basis in its next quarterly earnings report, due July 24, despite tariff-related uncertainties and concerns about restrained consumer spending.

DoorDash (DASH) stock gained 3.4% after Deutsche Bank analysts boosted their price target on shares of the food delivery company. The Deutsche Bank team pointed to DoorDash’s trajectory in the U.S. grocery market, forecasting an increase in transactions in the segment as well as sales growth to be driven by increases in gross and average order value.

Wells Fargo lifted its price target on Uber Technologies (UBER) stock, helping drive shares of the ridesharing giant 3.3% higher. Analysts highlighted upbeat expectations for Uber’s growth in mobility bookings and a positive view on the company’s strategic initiatives to expand its market presence, including its embrace of lower-priced products and forays into less dense markets.

[ad_2]

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here