Trump's Copper Tariff Sparks Market Reactions

U.S. President Donald Trump has announced a 50% tariff on imported copper, causing U.S. Comex copper futures to surge more than 12% to a record high. This move could amplify his already extensive global trade war. Copper is essential to electric vehicles, military hardware, and many consumer goods.

Market reactions to the announcement were mixed, with major stock indexes inching lower. Freeport-McMoRan shares experienced a 2.5% increase. President Trump hinted at forthcoming tariffs on semiconductors and pharmaceuticals. Meanwhile, trade talks with the European Union and China are reportedly progressing.

As the markets anticipate the start of second-quarter earnings reports from S&P 500 companies, investors are cautious. BofA Global Research and Goldman Sachs have raised year-end forecasts for the S&P 500 due to robust corporate earnings. Meanwhile, oil prices rose amid decreased U.S. oil production forecasts, further impacted by U.S. copper tariffs.

(With inputs from agencies.)