US Stocks Drop as Tariff Deadline Looms and Tesla Faces Turbulence

US stocks fell ahead of Wednesday’s tariff deadline, with Tesla dropping after Elon Musk announced a new political party. Treasury yields rose, the dollar strengthened, and crude oil prices increased despite OPEC’s plan to boost supply in August. Gold weakened on a firmer dollar.

Trump plans to impose 25% tariffs on Japan and South Korea, adding to market jitters ahead of the tariff deadline. Wall Street paused its bull run as investors brace for more trade announcements before Wednesday. Treasury Secretary Scott Bessent hints at more news to come.

Despite Monday’s pullback, the stock market has rebounded from April’s panic, weathering various risks. The dollar remains weak, down 7% against the euro since April. The 10-year Treasury note’s yield is only slightly higher, showing resilience amid global economic concerns. Investors await more news on tariffs.

Tesla CEO Elon Musk’s announcement of the America Party and criticism of the “big beautiful” tax bill caused Tesla shares to plummet, affecting Wall Street. Musk’s political involvement raises investor worries about the company’s focus. Tomorrow, no major U.S. data or events are expected to move markets.

Read more at Yahoo Finance: Tariff headlines and moving deadlines