US stocks plunge, USD rises after Trump posts tariff letter

The US stock market fell sharply on the first day of the week when US President Donald Trump posted a letter to 14 countries, announcing the tariffs that will be imposed on goods from these countries from August 1.

Traders at the New York Stock Exchange - Photo: REUTERS

According to CNBC channel On July 7, the Dow Jones index decreased 422.17 points (0.94%), closing at 44,406.36 points.

The S&P 500 index fell 0.79% to 6,229.98 points. The Nasdaq Composite index lost 0.92% to close at 20,412.52 points.

This was the biggest drop since mid-June for all three major US stock indexes.

Shares of Japanese automakers in the US fell sharply, with Toyota Motor down 4%, and Honda Motor losing 3.9%.

Additionally, Tesla shares fell 6.8% after CEO Elon Musk announced the formation of a new political party in the US called "America Party", according to Reuters news agency .

The MSCI index measuring global stocks fell 5.80 points (0.63%) to 919.93 points, while the pan-European STOXX 600 index rose 0.44%.

The yield on the 10-year US Treasury note rose 5.7 basis points on the day to 4.397%.

USD increased the most compared to yen, exchange rate 146,130 yen to 1 USD, up 1.09%.

The euro exchange rate against the USD decreased by 0.57% to 1.172 USD per 1 euro.

The USD Index, which measures the greenback's strength against six other major currencies, rose 0.517% to 97.467, hitting a one-week high.

"Trade, inflation and earnings will be the next three key factors that can move the market up or down, depending on how they play out. However, the market likes certainty, and today's news adds to the uncertainty, leading to the sell-off," Adam Sarhan, chief executive of 50 Park Investments in New York, told Reuters .

According to letters sent to leaders of 14 countries that Mr. Trump posted on the social network Truth Social, the US will impose taxes on goods exported to the US from these countries, starting August 1.

Accordingly, the US will impose a 25% tax on Japan, South Korea, Tunisia, Malaysia and Kazakhstan; 30% on South Africa, Bosnia and Herzegovina; 35% on Serbia and Bangladesh; 36% on Cambodia and Thailand; and 40% on Laos and Myanmar.

On the same day, the White House issued an executive order, postponing the re-imposition of Trump's reciprocal tariffs until 0:01 on August 1.

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THANH HIEN

Source: https://tuoitre.vn/chung-khoan-my-lao-doc-dong-usd-tang-gia-sau-khi-ong-trump-dang-thu-thue-quan-20250708053525104.htm