Elon Musk Launches Rival Party; Markets Tank On 25% Tariffs

Summary

David Lin reviews a market selloff triggered by Trump's 25% tariff letters to Japan and South Korea and other nations, alongside Tesla's drop after Elon Musk launched a rival political party. He highlights fiscal deficit concerns, weak underlying June jobs data, and local economic disruptions from immigration raids. The video also notes a swing in Bloomberg sentiment to near-manic levels, which historically preceded small-cap underperformance, and recaps oil, gold, and copper moves.

• Trump imposed 25% tariffs on Japan and South Korea and sent letters to seven nations, pressuring the Dow, S&P 500, and Nasdaq.
• Tesla fell 7% pre-market after Musk announced a rival political party, adding to concerns over a 13% sales decline.
• Fiscal worries rose as the deficit, tax bill, and interest payments exceeding defense spending drew attention.
• June jobs headline was 147,000, but private payrolls were only 74,000 and labor-force dropouts totaled 329,000.
• Los Angeles immigration raids disrupted construction, transit, and rebuilding efforts.
• Bloomberg sentiment swung from panic to near-manic, historically preceding Russell 2000 underperformance.
• OPEC+ production increases pushed Brent below $68; gold eased and copper fell for a third day.
• Markets face upcoming trade negotiations and tariff threats ranging from 10% to 70%.