Trade Tensions and Tech Declines Lead Stock Market Lower

Wall Street closed sharply lower on Monday due to tech and discretionary stock declines, with all three benchmark indexes in the red. The Dow Jones fell 0.9%, Nasdaq lost 0.9%, and the S&P 500 slid 0.8%. The fear-gauge VIX increased to 17.79, with decliners outpacing advancers on both NYSE and Nasdaq.

President Trump’s announcement of hefty tariffs on Japan, South Korea, and other countries led to the market downturn. Small-caps underperformed, with the Russell 2000 dropping 1.5%. Trade tensions escalated, causing a broad sell-off across sectors. Investors are watching for follow-through negotiations before the Aug. 1 effective date.

Tesla shares plunged 6.8% as Elon Musk announced the formation of a new political party. This raised concerns about his focus on running Tesla effectively. The stock slide marked Tesla’s worst single-day performance since June 5. Market unease was heightened by the tariff news, impacting broader market sentiment.

Read more at Nasdaq: Stock Market News for Jul 8, 2025