U.S. stocks fell on Monday as renewed trade tensions weighed on investor sentiment, pulling some major indexes back from record highs.
The Dow Jones Industrial Average fell 422.17 points, or 0.94 percent, to 44,406.36. The Standard and Poor's 500 sank 49.37 points, or 0.79 percent, to 6,229.98. The Nasdaq Composite Index shed 188.59 points, or 0.92 percent, to 20,412.52.
Nine of the 11 primary Standard and Poor's 500 sectors ended in red, with consumer discretionary and materials leading the laggards by losing 1.26 percent and 1.04 percent, respectively. Meanwhile, utilities and consumer staples led the gainers by rising 0.17 percent and 0.11 percent, respectively.
Markets opened lower and continued the downward trend during trading after U.S. President Donald Trump posted letters on social media addressed to the leaders of South Korea and Japan, saying that 25-percent tariffs will be imposed on imports from both countries beginning Aug. 1. He also announced tariff rates for many other countries in similar letters.
U.S. Treasury Secretary Scott Bessent confirmed Sunday that the United States would begin notifying trading partners of specific tariff rates, but emphasized that formal implementation wouldn't begin until next month. He added that talks with 18 major partners were underway and hinted at potential breakthroughs in the coming days.
Technology stocks led the pullback after the news, with Tesla sliding 6.79 percent as tensions flared again between its CEO Elon Musk and Trump. Apple and Alphabet both dropped nearly 1.7 percent, while Nvidia, Microsoft, Meta Platforms and Broadcom posted more modest declines. Amazon edged higher, bucking the broader trend.
Investors are also turning their attention to the second-quarter earnings season, which unofficially kicks off on Thursday with results from Delta Air Lines. Analysts are watching closely for signs of how corporate profits are holding up in the face of trade tensions and geopolitical risk.
U.S. stocks close lower as Trump plans tariffs on Japan, South Korea
U.S. stocks close lower as Trump plans tariffs on Japan, South Korea
Visiting Chinese Foreign Minister Wang Yi said Saturday China is willing to work with Lesotho to strengthen exchanges on governance experience, enhance coordination in multilateral affairs, and advance the China-Lesotho strategic partnership.
Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks when meeting with Lesotho Prime Minister Sam Matekane in the capital of Lesotho.
During the meeting, Wang congratulated Lesotho on the 60th anniversary of its independence this year, and spoke highly of Lesotho government's efforts to prioritize economic development and steer the African country onto a path of sustainable growth. Since the Beijing Summit of the Forum on China-Africa Cooperation (FOCAC) in 2024, the two sides have advanced cooperation under the 10 partnership action plans unveiled at the summit, successfully implementing a number of key projects to effectively promote Lesotho's development and revitalization, Wang said.
China stands ready to work with Lesotho to strengthen exchanges on governance experience, enhance coordination in multilateral affairs, and push for greater development of the China-Lesotho strategic partnership, he added.
Calling on the two sides to firmly support each other, Wang said that China will accelerate the implementation of its zero-tariff policy for African countries, including Lesotho, expand bilateral trade, investment and industrial cooperation, facilitate broader access of Lesotho's specialty products to the Chinese market, and continue to support Lesotho's national development.
China will continue to stand firmly with African countries, uphold justice for the Global South, including Lesotho, oppose unilateralism and acts of bullying, and work together to build a community with a shared future for humanity, Wang said.
On his part, Matekane said during the meeting that Lesotho cherishes its friendship with China and the strategic partnership between the two countries, and expressed gratitude for China's valuable support for the development of African countries, including Lesotho.
Lesotho firmly adheres to the one-China principle and resolutely supports China in safeguarding its core interests, he said, noting that his country stands ready to strengthen strategic mutual trust with China, expand people-to-people exchanges, jointly implement the outcomes of the FOCAC Beijing Summit, and deepen cooperation in areas such as infrastructure, manufacturing and energy.
Matekane stressed that China's zero-tariff policy for African products will inject new impetus into Lesotho's development. He also expressed Lesotho's willingness to strengthen solidarity and cooperation with China on multilateral platforms such as BRICS to jointly address global challenges.
On the same day, Wang also held talks with Lejone Mpotjoana, minister of foreign affairs and international relations of Lesotho.
China, Lesotho to strengthen exchanges, advance cooperation
China, Lesotho to strengthen exchanges, advance cooperation
