By Heard Editors

What Happened in Markets Today

More tariff threats. Over the weekend President Trump said 30% tariffs on goods from the European Union and Mexico would go into effect on Aug. 1. This would be up from the current rates of 10% and 25% on the two markets' goods respectively. It was unclear if goods that are compliant with the U.S.-Mexico-Canada free-trade agreement would still be exempt from the Mexico tariff, as they are currently.

Stocks shrug once again. The major indexes were initially lower but recovered and finished the day in mostly positive territory. The Dow Jones Industrial Average rose 88 points, or 0.2%. The S&P 500 gained 0.1% and the Nasdaq climbed 0.3%.

Yet the new tariff threats could delay Fed rate cuts. Chicago Fed President Austan Goolsbee told the Wall Street Journal in an interview that new tariffs would muddy the inflation outlook, making it harder for him to support rate cuts.

Elon Musk wants Tesla to invest in his AI company. Musk said Tesla shareholders would vote on investing in xAI. This followed a Wall Street Journal report on Saturday that said SpaceX, his rocket company, had committed $2 billion toward a recent fundraising round for xAI.

This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.

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(END) Dow Jones Newswires

July 14, 2025 18:07 ET (22:07 GMT)

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