Shares of banks and other financial institutions fell sharply as volatility returned to global markets.
The S&P 500 closed at a record high ahead of the July 4 break.
The Trump administration's hawkish tone on tariffs, and revelations that Japan, South Korea and other major Asian and African exporting nations would face rates between 25% and 40% on Aug. 1, spooked equity and bond markets on Monday's return, one strategist said. New tariffs would "make it more difficult for the Fed to act," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
If passed along to the consumer, the tariffs would spark inflation; if corporations "ate" the tariffs, that would weigh on earnings growth, Joyce said.
The CBOE market volatility index, or VIX, a measure of prices paid by investors to insure against major stock corrections, was relatively muted, however. A compromise with the
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-07-25 1726ET
