Market Reactions to Trump's Latest Tariff Threats

Wall Street experienced a minor decline on Monday as President Donald Trump's latest tariff threats against the European Union and Mexico caused a stir among investors. The markets are bracing for a week filled with significant economic data releases and major second-quarter earnings reports.

Trump's announcement of a 30% tariff on most imports from the EU and Mexico, set to commence August 1, has intensified trade tensions. This follows last week's tariff measures against allies such as Canada and Japan. Despite these developments, investors appeared largely unruffled, with many accustomed to Trump's erratic tariff strategies and potential last-minute reversals.

Amid these trade concerns, RBC Capital Markets upgraded its S&P 500 target, reflecting optimism in the economic outlook. Meanwhile, attention is shifting toward forthcoming consumer price data and earnings from major Wall Street banks. A potential September interest rate adjustment is being closely watched, although a July cut seems unlikely, according to Federal Reserve officials.

(With inputs from agencies.)