Stock Market Tension Amid Tariff Policy Uncertainty

U.S. stock indices experienced a downward trend on Monday as uncertainty surrounding U.S. tariff policies continued to unsettle investors. Tesla shares notably dropped following CEO Elon Musk's announcement of launching a political party. This development adds tension to existing market volatility.

President Donald Trump's administration is preparing to introduce new trade tariffs by August 1, which could alter international trade dynamics significantly. Trump's threat to impose an additional 10% tariff on countries associated with the BRICS group further complicates the economic landscape.

Investors remain cautious, particularly in light of the market reaching record highs last week. With upcoming trade announcements and potential Federal Reserve rate decisions, market participants are preparing for potential inflation-related impacts, highlighting the precarious balance between stimulating economic growth and managing inflation.

(With inputs from agencies.)