Sector Snapshot: Autos Stocks Hit the Reverse
Uncertainty about a US-EU trade deal weighed on the auto sector. Mercedes-Benz Group slid 1.12%, with BMW and Volkswagen falling 0.38% and 0.31%, respectively. Porsche ended the session down 0.29%.
The healthcare and tech sectors also came under selling pressure. Both sectors are potential targets for higher tariffs.
Wall Street Mixed as Trump Threatens Higher Tariffs on EU Goods
US markets had mixed performances on Friday, July 18, as market focus turned to trade headlines. The Dow and the S&P 500 fell 0.32% and 0.01%, respectively, while the Nasdaq Composite Index gained 0.05%.
A pickup in US consumer confidence and corporate earnings bolstered demand for US markets at current levels. The surge in crypto demand sent Robinhood (HOOD) and Coinbase (COIN) 4.07% and 2.2% higher. Bitcoin (BTC) struck an all-time high of $122,057 this week, while XRP is up 21.9% for the week, driving trading volumes on exchanges.
However, reports of President Trump pushing for 15% to 20% tariffs on EU goods tempered sentiment.
Fed Speakers and Trade Developments in Focus
On Monday, July 21, trade developments may influence demand for risk assets such as the DAX. An EU response to Trump’s threat of higher tariffs could trigger a market sell-off. Conversely, easing trade tensions may lift sentiment.