Markets Slip Ahead of Tariff Letters, Tesla Shares Dip as Musk Launches Party

Wall Street is bracing for a lower open this week after President Donald Trump announced he will begin sending letters today to U.S. trading partners outlining new tariff rates. Those tariffs are set to take effect on August 1.

Despite the current market dip, both the S&P 500 and Nasdaq closed last week at record highs. Investors this week are closely watching key economic indicators, including jobless claims, consumer credit data, and the minutes from the Federal Reserve's May meeting.

Tesla shares are under pressure as investors react to CEO Elon Musk's announcement that he is forming a new political party. Some analysts have expressed concern about Musk’s divided focus, with one tech expert calling Musk the company’s “biggest asset” and warning that board intervention may become necessary if his political involvement intensifies.

Meanwhile, Amazon Prime Day begins tomorrow and will run for four days, up from previous years. But Amazon is not alone in chasing consumer dollars—Walmart launches its six-day sale tomorrow both online and in stores. Target’s Circle Week is already underway, and Kohl’s, Best Buy, and even TikTok are offering special promotions.

Prime Day sales are projected to reach $23 billion in gross merchandise volume, benefiting both Amazon and its third-party sellers.

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